Owner-Occupier Commercial Property Loans From $500K to $100M+
Stop paying rent and start building equity with owner-occupier commercial property loans. We help you get competitive finance from our panel of 60+ lenders so you can secure your own business premises with rates from 5.85% and up to 85% LVR. Turn your biggest expense into your best investment.
Proud Members of the Mortgage and Finance Association of Australia
Owner-Occupier Commercial Property Loans Overview (Last Checked 8 October 2025)
Finance Rates
- Interest Rates: 5.85% - 8.35% p.a.
- Max LVR: Up to 85%
- Minimum Deposit: From 15% plus costs
- Loan Terms: 15-30 years
Loan Structure
- Repayment Options: P&I or Interest Only
- Rate Types: Variable or Fixed rates
- Interest Only Premium: +0.5% - 1.0%
- Fixed Rate Difference: +0.5% typically
Eligibility & Process
- Business Age: From 2 years trading
- Property Types: Office, retail, warehouse, industrial, medical, mixed-use, hospitality
- Loan Size: $500K to $100M+ available
- Approval Time: 2-4 weeks typically
Owner-Occupier Commercial Property Loans
Owner occupier commercial loans help you stop paying rent and start building equity in your own premises. With financing options up to 85% of the property value, you can secure your business’s future while turning one of your biggest expenses into a valuable asset that grows with your success.
After helping hundreds of Australian business owners purchase their own premises, we know what makes the difference between approval and decline:
- Finding lenders who understand your industry and cash flow
- Getting the lowest rates without endless paperwork
- Keeping enough working capital free to run your business
Book a free 30 min consultation to see how much you could borrow and what your repayments would look like.
Nadine Connell
Commercial Finance Broker
Owner-Occupier vs Investment Commercial Loans
Why businesses buying their own premises get better terms
Lower Interest Rates
Save 0.5-1.5% p.a. because lenders know you're invested in the property's success. On a $2M loan, that's $20,000-$30,000 saved annually.
Higher Borrowing Power
Access 10-15% more funding. Buy a $2M property with just $300K deposit instead of $500K required for investors.
Easier Approval
Your existing rent payments prove affordability. No vacancy concerns or rental income verification required.
Tax Advantages
Claim interest as a business expense. No capital gains tax if you occupy for business. Simpler depreciation claims.
Better Loan Features
100% offset accounts, unlimited redraws, no penalties for extra repayments. Renovate and customise freely.
Lower Security Requirements
Lenders have lower thresolds for security requirements such as personal property guarantees.
Example Based On $2m Commercial Property Purchase
*Based on $2M commercial property purchase. Actual savings depend on your circumstances.
Owner-Occupier Commercial Loan Rates & Terms
Exclusive rates for businesses buying their own premises - Updated October 2025
Business Type |
Rate From |
Max LVR |
Key Benefits |
|---|---|---|---|
Established Business (2+ years) |
5.85% - 8.35% p.a. |
85% |
Best rates • Major banks • Offset account |
Medical & Professional |
5.75% p.a. |
90% |
Premium rates • Higher LVR • Fast approval |
Growing Business (1-2 years) |
+0.50% p.a. |
80% |
Non-bank options • Flexible criteria |
Start-up (<1 year) |
+0.75% p.a. |
70% |
Alternative lenders • Quick approval |
Owner-Occupier Advantage: Typical savings of 0.5-1.5% compared to investment property rates. Banks prefer owner-occupiers as they're considered lower risk.
Cost Type |
Typical Amount |
When Due |
|---|---|---|
Property Deposit |
15-20% of purchase |
Contract exchange |
Stamp Duty |
3-5.5% (varies by state) |
Settlement |
Legal Fees |
$2,500-$5,000 |
Settlement |
Valuation |
$1,500-$4,000 |
Application |
Building Inspection |
$800-$2,500 |
Before contract |
Loan Establishment |
0.5-1% (min $3k) |
Settlement |
Pro Tip: Budget 30% of purchase price for total upfront costs. Example: $1M property = $200K deposit + $80K costs = $280K total needed.
Lender Type |
Best For Owner-Occupiers When |
|---|---|
🏦 Big Four Major Banks |
Established business (2+ years), strong financials, looking for the best rates. |
🏢 Regional Banks |
Regional properties, local relationships matter, community-focused businesses |
💼 Non-Bank Lenders |
Need higher LVR (up to 90%), newer business (1-2 years), faster approval needed |
🏥 Medical Lenders |
Healthcare professionals, need up to 90% LVR, specialist suites, premium rates available |
🔐 Private Lenders |
Urgent settlement, complex situations, bridging to permanent finance |
Why Owner-Occupiers Get Better Treatment: You're living and breathing your business success - lenders see this commitment as lower risk than property investors.
Industry Matters: Medical, professional services, and essential services often qualify for premium rates and terms.
Relationship Banking: Owner-occupiers can leverage existing business banking relationships for better commercial property rates.
Nadine Connell
Commercial Finance Broker
Owner-Occupier Commercial Property Loan Features
Loan feature, security and potential tax advantages for business owner-occupiers
Principal & Interest vs Interest-Only
As an owner-occupier, most lenders prefer principal & interest repayments since you’re building equity in your business asset. However, interest-only periods (1-5 years) are available during expansion phases or seasonal downturns. Unlike investors who get ongoing interest-only terms, owner-occupiers typically transition to P&I to build equity.
Offset Accounts for Business Cash Flow
Many owner-occupier loans include loan offset facilities linking to your business operating account. Park your working capital to reduce interest daily while maintaining instant access for wages, suppliers, and operations. Every dollar in offset saves interest at loan rates – effectively earning tax-free revenue on your business reserves.
Redraw for Business Investment
Built-up equity becomes your business growth fund. Redraw facilities let you access extra repayments for equipment purchases, fit-outs, or expansion without new loan applications. Owner-occupiers get unlimited free redraws with most lenders – investors often face restrictions.
Flexible Repayment Schedules
Align loan repayments with your business cash flow – weekly, fortnightly, or monthly options available. Seasonal businesses can structure higher repayments during peak periods, lower during quiet months. Make unlimited extra repayments without penalty on variable rates.
Limited Personal Guarantees
Strong established businesses may avoid personal property guarantees, limiting exposure to just the business premises. Director guarantees typically capped at 20-30% of loan value rather than unlimited. Medical and professional practices often qualify for guarantee waivers entirely.
Business Assets as Additional Security
Unlike investors, owner-occupiers can leverage existing business assets – equipment, fit-out, goodwill – to achieve higher LVRs or better rates. Your business track record becomes security, not just the property.
Renovation & Fit-out Funding
Add renovation finance to your owner-occupier loan for premises improvements. Access finance for additional for fit-outs, expansions, or upgrades at home loan rates. Progressive drawdowns available for staged renovations without reapplication.
Lease-Back Options If You Sell the Business
Unique to owner-occupiers: if you sell your business but keep the property, convert to investment loan terms. Some lenders offer automatic conversion without refinancing, preserving your rate and relationship.
Substitutable Security
Growing businesses can substitute security – upgrade to larger premises by selling current property and transferring the loan. Available for established owner-occupiers with strong payment history, avoiding refinance costs and keeping favorable terms.
Simplified Tax Treatment
No complex negative gearing calculations or rental income declarations. Loan interest is a straightforward business expense deduction. Building depreciation claims are cleaner without tenant complications.
GST Benefits on Purchase
Going concern exemptions often available when buying tenanted commercial property for your own use. Claim GST credits on purchase costs if registered for GST. No GST complications on future sale as owner-occupier.
The 5 Step Owner-Occupier Commercial Finance Process
Timeframes are typical estimates and may vary. Not financial advice. Talk to our team for guidance specific to your situation.
Talk directly to a specialist
Ready to get started, or want to learn more?
Get direct access to Nadine Connell - your dedicated commercial finance specialist with over 15+ years experience and 3,300+ happy clients.
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Owner Occupier Commercial Loan Calculator
Find out how much you can borrow and what your repayments will be when buying your business premises
Business Income
Gross revenue before expenses
Net profit before tax (also called EBITDA)
What you currently pay in rent
Loan Parameters
Cash available for deposit
Expected commercial rate
Preferred loan term
Property Details
Total purchase price
Your deposit (min 15-20%)
Stamp duty, legal, and other costs
Loan Details
Annual interest rate
Length of loan
Repayment structure
How Borrowing Capacity Works
Lenders assess your business's ability to service a loan based on your net profit (EBITDA) plus any rent you currently pay, as this becomes available for loan repayments once you own the property.
Most lenders use a serviceability ratio of 1.5-2.0x, meaning your available income should be 1.5-2 times the annual loan repayments.
Current Market Conditions
- Owner-occupier rates: 6.5% - 8.5% p.a.
- Maximum LVR: 70-85% for owner-occupiers
- Typical loan terms: 15-30 years
- Minimum deposit: 15% plus costs
- Better rates for strong businesses
Tips to Maximise Borrowing
- Show 2+ years of profitable trading
- Clean up your business financials
- Pay down existing business debt
- Consider longer loan terms for serviceability
- Shop around - rates vary significantly
Disclaimer: This calculator is provided for illustration purposes only and does not constitute financial advice or a loan offer. Calculated figures are estimates only, may be inaccurate, and do not reflect actual lender terms or fees. Actual loan amounts, rates, repayments, and eligibility will vary based on your specific circumstances and lender assessment. Do not base any financial decisions on this calculator. Contact our team for a tailored quote.
Business Owner-Occupier Success Stories
See how Australian business owners transformed from renting to owning their premises
Manufacturing Facility
$3.2M Purchase"After 15 years renting, we finally own our facility. Saved $8,500/month compared to rent increases. Building $2.8M equity over 10 years instead of paying a landlord."
Medical Centre
$5.8M Purchase"Secured 90% LVR funding despite being a newer practice. Loan payments are $12K less than rent. Plus we can now expand without landlord approval."
Warehouse & Office
$8.5M Purchase"Converted $680K annual rent into equity building. Property valued at $11M after 3 years. Used equity to fund fleet expansion without diluting ownership."
Ready to stop renting and start building equity?
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Strong Applications
We'll work with you to develop a strong application profile, improving your chances of a successful application. We'll also call out any issues or gaps early. Your business plan and cash flow projections are also include
Best Possible Terms
We compare multiple lenders and present suitable options from our extensive development finance lender panel. We consider loan features like rates & terms, payment flexibility and approval timeframes.
Avoid Mistakes
We help you avoid the common mistakes people make every day. From getting stuck with high rates to having loan applications rejected because the information wasn't structured the right way for the lender.
Frequently asked questions
What's the difference between an owner-occupier and investment commercial property loan?
Owner-occupier loans are for businesses buying premises they’ll occupy themselves (at least 51% of the space). You generally get better rates (typically lower than investment loans), higher LVRs (up to 85% vs 70%), and longer loan terms because lenders view you as lower risk (you’re less likely to default on your own business premises).
How much deposit do I need to buy my business premises?
Owner-occupiers will need between 15% – 30%, 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.
How much of the property must my business occupy to qualify for owner-occupier rates?
Most lenders require you to occupy at least 51% of what’s known as the lettable area. For example, if you’re buying a 1,000sqm building, your business needs to use at least 510sqm of that space. You are generally allowed to lease out the remaining 49% if you want to generate additional income, which actually helps with loan serviceability.
Can a newer business qualify for an owner-occupier commercial loan?
Yes, but your rates will generally be higher than for established businesses (2+ years).
We find lenders for newer businesses want to see:
- Stronger deposit minimums
- Business plan and cash flow projections
- Personal guarantees from directors
- Evidence of industry experience
Should I choose Principal & Interest or Interest Only repayments?
Most of our business owner-occupier clients choose principal and interest repayments because:
- You build equity from day one
- The total interest cost is lower over the loan term
- There is no refinancing pressure when the interest-only period ends. Interest only might suit if you’re renovating the property or have seasonal cash flow, but expect to pay extra on your rate.
What property types qualify for owner-occupier commercial loans?
Most commercial properties qualify, including:
- Offices and professional suites
- Warehouses and industrial units
- Retail shops and showrooms
- Medical and allied health premises
- Mixed-use properties (with commercial component)
- Specialised properties (childcare, gyms, etc.) – may need specialist lenders
Can I buy a strata-titled commercial unit instead of a whole building?
Yes, strata units often suit smaller businesses and professional services. The benefits can include lower entry price and shared maintenance costs. It’s important to consider the strata fees and any restrictions on business use in the strata rules before proceed with purchase.
How does owning compare financially to renting long-term?
When we look at the market historically, after 5-7 years owning generally beats renting because:
- Loan payments (fixed rates) stay stable while rents increase 3%+ annually
- You’re building equity instead of paying a landlord
- After 10 years, most owner-occupiers have built anywhere from $500K-$2M in equity
- You can borrow against the equity for business expansion
What if property values fall after I purchase?
Owner-occupiers are less affected by value fluctuations because:
- You’re not relying on rental income
- Loan payments remain the same
- You still save vs renting
- Commercial property historically recovers well
- You’re building a long-term business asset
Should I buy business premises directly or through my Self-Managed Super Fund?
There are advantages to both approaches. Buying through your business directly gives you immediate control and simpler financing, with interest being tax-deductible.
But buying business premises with a SMSF commercial finance loan 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.