Turn Rent Into Equity With Owner-Occupier Loans From $500K to $100M+

Owner-occupiers will need between 15% – , plus costs (stamp duty, legal fees, etc.) for commercial property loans. So if you’re looking at a $1 million property for example, you’d typically need $150,000-$300,000 deposit plus around $40,000 for costs. Only those with strong business financials are typically able to attract the types of lenders that offer the upper 70% – 85% LVR, but working with us as your finance broker ensures we are able to put the strongest business case for premium LVRs forward.

Yes, a number of our lenders will consider businesses with under 2 years of trading history, especially if you can show you’ve grown consistently and profitably. As an owner-occupier you have more flexibility than investors because you’re buying the commercial premises for your own use. Strong personal credit, industry experience, and a healthy deposit can offset a shorter trading history. 

Lenders typically add your business net profit (EBITDA) to your current annual rent, since that rent money becomes available for loan repayments once you own the property. They usually want this combined figure to be 1.5-2 times your proposed annual loan repayments. For example, if you make $150,000 profit and pay $60,000 rent, your $210,000 available income could support annual repayments of around $140,000, which equals roughly $1.8 million borrowing at 7% over 25 years.

Business owner-occupier rates are typically 0.5-1.5% lower than investment property rates because lenders see less risk when you’re using the property yourself. Plus, owner-occupiers can often borrow up to 85% LVR compared to just 70% for investors. And approval is usually faster because there’s no need to assess rental income or lease agreements.

There are advantages to both approaches. Buying through your business gives you immediate control and simpler financing, with interest being tax-deductible. But buying through your SMSF can often be more tax-effective long-term (15% tax rate), while protecting your property from business creditors. Of course, this requires your super balance to have enough for the deposit, and comes with stricter borrowing rules. Many business owners buy through an SMSF and lease back to their business at market rent. As specialist commercial finance brokers we can help you assess which option is right for you.