85% of Australian brokers now handle complex borrower cases, Bluestone report finds

Key facts

• 85% of brokers regularly see borrower scenarios outside standard credit policy, per Bluestone's 2026 report.
• About 2.7 million Australians have variable income, including self-employed, contractors, and casual workers.
• 1.1 million Australians are self-employed, identified as the most underserved segment by major lenders.
• 42% of brokers rank self-employed clients as their hardest cases to place.
• Only 29% of brokers cite rates as the main barrier; credit policy and incomplete lending solutions are larger issues.
• 68% of brokers want to write more specialist loans, but 46% lack confidence.
• Household Capital's reverse mortgage loan book surpassed $1 billion for the first time.
• Household Capital appointed Tammie Hotz (NSW), Kylie Fox (Vic), and Jack Rosier (support) in March-April 2026.

Complex borrowers become the norm in Australian mortgage market

Australia’s mortgage market is undergoing a structural shift as complex borrower cases become commonplace, according to a new report from Bluestone Home Loans. The Specialist Lending Opportunity Report 2026 found that 85% of brokers now regularly encounter borrower scenarios that fall outside standard credit policy. Variable income, non-standard employment, and intricate financial arrangements are no longer confined to niche groups but have entered the mainstream. Australian show about 2.7 million Australians have income that fluctuates from one period to the next. This cohort includes self-employed borrowers, contractors, casual workers, commission-based employees, and those reliant on overtime or allowances. “Complexity in borrowers’ financials is no longer the exception, it’s the norm,” said Aaron Taylor, head of non-standard lending at Bluestone.

Self-employed borrowers hardest hit by rigid lending policies

identifies self-employed borrowers as the segment most underserved by major lenders. With 1.1 million Australians falling into this category, 42% of brokers ranked self-employed clients as their hardest cases to place. Brokers are increasingly turning to specialist lenders who take a more flexible view of income and credit. Only 29% of brokers named interest rates as the main barrier to placing complex loans. Instead, credit policy and incomplete lending solutions emerged as larger obstacles. “Rate is often a smokescreen, the real issue is policy,” Taylor said. “When lenders can assess the full picture rather than just tick boxes, more deals get done and better outcomes are achieved for their clients.”

Skills gap hinders broker growth in specialist lending

also highlights a significant skills gap in the broker market. While 68% of brokers want to write more specialist loans, 46% said they lack confidence in doing so. Taylor noted that brokers who build specialist lending knowledge and work with supportive lenders can strengthen their market position. “Learning to identify and capture specialist opportunities drives growth, differentiation, and long-term sustainability,” he said. Bluestone aims to give brokers the confidence and support to handle complex scenarios, making the process seem easy for clients. “This is about standing behind brokers as they expand their businesses, giving them the support to help more clients access lending, even when the path isn’t straightforward,” Taylor added.

Household Capital surpasses $1 billion in reverse mortgage loans

Meanwhile, specialist lender Household Capital has reached a milestone, with its reverse mortgage loan book surpassing $1 billion for the first time. The lender, which provides finance options for Australians aged 60 and over, has expanded its broker support team with three new appointments. Tammie Hotz joined as business development manager for NSW on March 23, bringing 30 years of lending experience from Teachers Mutual Bank and Victorian Mortgage Group. Kylie Fox was appointed BDM for Victoria on April 7, after eight years at Suncorp Bank. Jack Rosier also started on April 7 as broker support associate, responsible for ensuring a seamless application experience. Shelley Wettenhall, Household Capital’s head of broker distribution, said the appointments reflect the company’s commitment to the broker sector as demand for reverse mortgages grows.

Rate cuts and tech upgrades aim to streamline broker processes

The appointments come alongside recent reductions in interest rates across Household Capital’s product suite and the launch of a bespoke broker portal designed to streamline and expedite the application process. “By lowering our interest rate and enhancing our tech stack, we are reaffirming our commitment to being a high-value partner for our broker network,” Wettenhall said. She emphasized that a broker’s greatest asset is the trust they build with clients. “Providing a more competitive rate and a streamlined process allows them to strengthen those relationships by delivering even greater financial flexibility,” Wettenhall added. The goal, she said, is to empower brokers with the right tools and pricing to ensure clients can enjoy a more comfortable, secure retirement in the homes they love.

Reverse mortgages gain traction as older Australians seek equity access

Reverse mortgages are enabling more Australians over 60 to tap into the equity in their homes to cover healthcare costs, renovations, or pay off existing mortgages. As clients age, an increasing number of brokers are recommending reverse mortgages to meet their clients’ finance needs, Wettenhall noted. The appointments and product enhancements position Household Capital to capture growing demand in this segment. The broader trend of complex borrower cases and the rise of specialist lending underscore a market in transition. With major banks turning their backs on brokers in favour of direct channels, specialist lenders are filling the gap, offering tailored solutions for self-employed, variable-income, and older borrowers.

Market outlook: Specialist lending set to expand as broker confidence builds

suggests that the specialist lending sector will continue to grow as brokers gain confidence and lenders adapt their policies. Taylor predicted that brokers who embrace specialist lending will be best positioned to thrive. “Brokers who are supported to navigate these scenarios by lenders that take a more flexible, real-world view of income and credit are the ones best positioned to grow,” he said. With 2.7 million Australians on variable incomes and a rapidly aging population, the demand for flexible lending solutions is unlikely to abate. The convergence of policy rigidity, borrower complexity, and demographic shifts is reshaping Australia’s mortgage landscape, forcing brokers and lenders alike to adapt or risk being left behind.

The bottom line

• 85% of brokers now handle complex borrower cases, making specialist lending a mainstream necessity.
• Self-employed borrowers are the most underserved, with 42% of brokers finding them hardest to place.
• Only 29% of brokers see rates as the main barrier; credit policy is the bigger issue.
• Household Capital's reverse mortgage book surpassed $1 billion, reflecting growing demand among older Australians.
• The lender cut rates and launched a broker portal to streamline applications and build broker trust.
• A skills gap persists: 68% of brokers want to write more specialist loans, but 46% lack confidence.