Niche lender Bluestone Group plans to help itself to a larger slice of the mortgage pie by expanding into commercial property.
Bluestone Group, backed by Barclays Bank, now comprises Bluestone Mortgages and Bluestone Equity Release and new business arm Bluestone Commercial.
Australia's commercial property mortgage market is worth between $10 billion and $20 billion, according to Bluestone Commercial executive general manager Peter Wood.
"We are targeting a little pocket of that with mortgages of $200,000 to $5 million aimed at small to medium enterprises." Wood said.
Of the new venture, Wood said: "Bluestone, under Alistair Jeffrey, has always had designs on broadening the shopfront."
Following commercial property market research in Australia, UK and US, Bluestone identified a niche market in self-employed borrowers and professional investors. It is rolling out its commercial products following a successful pilot program across Australia.
Bluestone Group founder and chief executive officer Alistair Jeffery said: "Our research suggests that the self-employed commercial sector is poorly served by traditional lenders. Gearing levels are generally low, loan terms short, prior credit problems are seldom tolerated and the credit assessment often involves a review of the business operations and regular reviews."
Borrowers can self-certify their income and borrow from Bluestone to buy or refinance industrial property, warehouses, shops and small offices. Loans of up to $5 million per security or $10 million per borrower can be made.
Bluestone Group, founded in 2000, has financed 20,000 Australians and New Zealanders with more than $4 billion in home loans.
