What is an Owner-Occupied Mortgage?
An owner-occupied mortgage is a loan secured against a property that will be used primarily by the owner for business operations.
These properties may include:
- Offices
- Retail stores
- Warehouses
- Manufacturing plants
- Restaurants or cafes
Owner-occupied mortgages differ from investment mortgages as they are intended for properties directly used by the business rather than rented out or sold for profit.
Benefits of Owner-Occupied Mortgages
Provides long-term stability by eliminating the risks of lease terminations or rent increases.
As the loan is repaid, businesses build equity in the property, which can be leveraged for future growth.
Freedom to modify and tailor the property to meet specific business needs.
Interest payments on owner-occupied mortgages may be tax-deductible.
Key Considerations When Applying for an Owner-Occupied Mortgage
Clearly define how the property will be used as part of the business.
Lenders evaluate factors such as business financials, credit history, and the property’s value.
Most owner-occupied mortgages require a deposit, typically ranging from 20% to 40% of the property’s value.
Understand the repayment period, interest rates, and any fees associated with the loan.
Types of Commercial Mortgages
Designed for businesses purchasing property for their own use.
Offers a consistent interest rate for a set period, providing predictable repayments.
Interest rates fluctuate based on market conditions, potentially lowering costs but with higher risk.
Why choose Cornerstone Commercial?
Best Rates, Best Fit: Our extensive lender network ensures you get the most competitive rates and the perfect financing solution for your business.
Expert Guidance, Every Step: Our experienced brokers keep you informed and supported throughout the entire process.
- 100% Funding available
- Owner-occupied mortgages with 25%-30% deposit
- Rate options to suit your business
- Indicative terms within 24 hours
