Owner-Occupied Commercial Property Loans for Melbourne and Victoria Businesses
Buying the warehouse, office, retail or industrial premises your business operates from. Financed through one experienced commercial broker with access to major banks and specialist commercial lenders.
Subject to lender assessment and approval. ACL 384704.
Owner-Occupied — Quick Guide
- LVR up to 75% — major banks, full-doc
- LVR up to 80%+ — specialist lenders, low-doc
- Terms — up to 25–30 years, P&I or IO
- Occupancy rule — business must occupy the majority of the property
- Best for — tradies, SMEs, professionals buying their base
- Lender panel — major banks + specialist commercial lenders
When Owner-Occupied Finance Fits
Common scenarios where buying outperforms continuing to lease.
Tradies & SMEs Buying Their Base
Workshops, warehouses and yards bought instead of leased.
- Predictable monthly cost vs rising rent
- Equity built on every payment
- Capital growth captured on the property
Retail & Hospitality Operators
Retail strip premises, cafes and small fit-out tenancies.
- Suit longer-term operators
- Removes landlord renewal risk
- Often combined with fitout finance
Professional Practices
Accountants, allied health, dental, legal and engineering practices.
- Strata or whole-floor offices
- Practice principals often buy via SMSF or trust
- Stable serviceability from practice income
Industrial & Warehouse
Logistics, manufacturing, construction yards.
- Larger lots and yards considered
- Specialist lenders often more flexible than majors
- Commercial valuation rules apply
Owner-Occupied vs Investment Commercial Property
Owner-occupied loans are usually cheaper and higher-LVR than investment commercial.
Owner-Occupied
- LVR up to 75–80% with right lender
- Best rates available — lender sees lower risk
- Business must occupy majority of premises
- Longer terms — 20–30 years available
- Build equity instead of paying rent
Investment Commercial
- LVR typically 60–70%
- Tenant lease income services the loan
- Interest-only common
- Stronger lease covenant = better rate
- Suits portfolio investors, not first-time buyers
Documents Lenders Usually Ask For
- Last 2 years business and personal tax returns + financial statements
- Recent BAS (typically 4 quarters)
- ATO portal print showing tax position
- Trust deed or company structure if applicable
- Contract of sale and Section 32 / vendor statement
- Asset & liability position for guarantors
Frequently Asked Questions
How much deposit do I need for an owner-occupied commercial property loan?
Most owner-occupied commercial property loans need a 20–25% deposit. Specialist commercial lenders can sometimes go to 80%+ LVR for the right borrower and asset, especially when business cash flow is strong and the property type is mainstream (office, retail strip, industrial, warehouse).
Can I use my existing residential equity as the deposit?
Yes. Many owner-occupied commercial deals are structured with the deposit (or part of it) coming from a release of equity against an existing residential or commercial property. We model both options when we structure the deal.
Do I have to occupy 100% of the property?
No. Most lenders accept the loan as owner-occupied if your business occupies the majority of the property — typically 50% or more. The remaining space can be leased out, though that lease income is generally treated more conservatively than full investment income.
How long does owner-occupied commercial property approval take?
Indicative approval usually within 3–7 business days once a complete file is on the desk. Formal approval and settlement timing depend on the valuer’s availability, the contract, and any specialist lender steps. We pre-package files so commercial lenders can decision quickly.
Can I refinance into an owner-occupied commercial loan later?
Yes. If you currently rent or have an investment-style loan in place, refinancing into an owner-occupied structure once the business is in occupation can lower the rate, lift LVR and free up working capital.
Buying your own business premises?
Speak with Jorden about how to structure an owner-occupied commercial property loan against your business cash flow and existing assets.