Commercial property · owner-occupier
Stop paying rent. Start building equity.
Buying the premises your business operates from. Different lending criteria from residential or pure investment commercial. Better rates than investment commercial because it's strategically aligned with your business risk.
What it is, when it fits
Plain English, with the trade-offs.
An owner-occupier commercial loan funds the purchase of premises your business will operate from, rather than premises held purely for investment. Lenders price these tighter than investment commercial because the owner's commitment is strategic: the business and the property are tied together, default risk is meaningfully lower than for an arm's-length investor whose tenant might leave. Typical terms are 70% to 80% LVR, 15 to 25 year amortisation, principal-and-interest, with rates currently in the 5.5% to 7.5% p.a. range depending on lender, security, and your business profile. Most owner-occupier deals involve a holding entity (trust, holding company, or SMSF) owning the property and leasing to the operating entity, for tax efficiency and asset protection. The lender assesses both the property and the business: rental serviceability matters less than business cashflow and your ability to service the debt across the cycle. We coordinate with your accountant on the right ownership structure before submission.
Pen on a settlement document, two people deciding together.
Typical scenarios
Established business buying its rented warehouse
Why: Currently paying $180K p.a. rent on a 5-year lease.
Outcome: $2.4M owner-occupier loan, 75% LVR, 20-year P&I term; repayments comparable to rent, equity built rather than spent.
Professional practice buying its office suite
Why: 8-partner practice in growth phase, signing a 10-year strata.
Outcome: $1.6M owner-occupier loan, 70% LVR, held in unit trust on accountant advice.
Retailer buying its shopfront
Why: Independent retailer in a long-tenured location, lessor preparing to sell.
Outcome: $900K owner-occupier loan, 70% LVR, 25-year term, settlement coordinated with the lessor sale.
Manufacturer buying its factory
Why: Long-tenured factory, lessor exiting, business needs the certainty.
Outcome: $3.2M owner-occupier loan, 70% LVR, blended structure with major bank for senior debt.
Lenders for this product
Who we work with.
- NAB Business
- CommBank Business
- Westpac Business
- ANZ Business
- Bank of Queensland
- Suncorp Business
- Thinktank
- La Trobe Financial
Lender accreditation varies; not every lender is available for every deal. We pick from the panel based on your specific situation.
How it works
From brief to settlement.
- 01
Strategy and structure
We discuss the right ownership structure with you and your accountant before anything goes to a lender. Trust, holding company, SMSF, the choice changes pricing and policy fit.
- 02
Lender shortlist
Four to six lenders fit most owner-occupier scenarios. We submit to the two with the strongest current appetite for your business profile and property type.
- 03
Valuation, conditions, formal approval
The lender orders independent valuation, runs business credit assessment, and issues conditional then unconditional approval. Typical 3 to 5 weeks.
- 04
Settlement and ongoing review
Settlement coordinated with your conveyancer, funds clear to the vendor. We review the rate at 6 and 12 months in case the market has moved.
Indicative pricing & terms
Ranges, not promises.
Rate range
5.5 to 7.5% p.a.
Loan size
$250K to $15M
Term
15 to 25 year amortisation, P&I
Security
First mortgage over the commercial property
Indicative only; specific pricing depends on lender, security, and your business profile.
Frequently asked
Honest answers, plain English.
What's the difference between owner-occupier and investment commercial?
Owner-occupier means your business operates from the property; investment means a third-party tenant leases it. Lenders price owner-occupier 0.5 to 1% better because risk is strategically aligned, the owner has both equity in the business and equity in the property. Eligibility usually requires the operating entity to lease the property at arm's-length terms.
Should the property be held in the operating entity, a trust, or SMSF?
Almost never the operating entity (asset-protection risk is high). Common structures hold the property in a holding company, a unit or family trust, or an SMSF, leasing to the operating entity at market rent. The right structure depends on your tax position, partnership setup, and exit horizon. We coordinate with your accountant before submission rather than recommending in isolation.
Strata vs freehold, does it affect lending?
Yes, and it matters more than residential. Some lenders won't fund certain strata configurations (small lot count, mixed-use towers, leasehold strata). We screen the property type against lender appetite before applying.
Can I include a fit-out in the same loan?
Sometimes. Major banks often prefer the fit-out as a separate equipment-finance facility while keeping the property loan clean. Specialist lenders can sometimes blend the structure. We model both before recommending.
How long does the loan take to settle?
Typical timeline is 4 to 8 weeks from application, similar to a residential commercial purchase. The slowest part is usually the lender's independent valuation and any legal queries on the property title.
What's the tax implication of owning my business premises?
Generally favourable: the operating entity claims rent as a deductible expense, the holding entity claims interest and depreciation. CGT and stamp-duty implications depend on the structure and state. This is genuinely accountant territory; we coordinate rather than advise on it directly.
Related products
If this isn't quite the fit.
Next step
Twenty minutes, no obligation.
Tell us the shape of the deal and the timing. We'll send a lender shortlist for owner-occupier commercial property loan or, if it isn't the right fit, an honest signal of what is.