Owner occupier construction finance for commercial premises

Ardent Capital Group brings the same method to every client: execution and strategy, clear advice for smart lending, and long-term growth. That means the right lender, structure and timing, straight advice so you borrow with confidence, and today's deal built toward where you want to be tomorrow. On an owner occupier build the term facility matters more than the construction facility, and it is the one most people find out about last. We arrange both together from the start.

It is sized against the completed value and against the cost to build, and the lender advances the lesser of the two. The majors publish no owner-occupier commercial LVR, so that share is assessed case by case. The cost ceiling reaches up to 80% at the majors and up to 85% at non-bank lenders.

No, and the difference is the exit. A development is repaid from the sale of the finished stock, so the lender assesses whether it will sell. You are keeping the building, so the lender assesses whether your business can service the term debt. That makes your financials part of the file in a way they are not on a development.

Presales do not apply, because nothing is being sold. A valuation on an as-if-complete basis is standard, because that is what sets the security value the facility is written against, and a second valuation is usually done at practical completion before the term facility settles.

It converts. The construction facility is repaid by a term commercial mortgage secured against the completed building, and that term facility is what your business services from there. Where one lender writes both, the roll is usually mechanical. Where two are involved, the term facility needs conditional approval before the construction facility matures.

Yes, and it is a common structure. Equity already in the land does the work a cash contribution would otherwise do. The lender values the site as it stands and the property as it will be on completion. Where there is an existing mortgage over the site it usually needs to be refinanced into the new facility.

Not with borrowed money. Where an SMSF borrows under a limited recourse borrowing arrangement, the borrowed funds cannot be used to improve or develop the asset, which rules out funding a construction project that way. A fund can buy a completed commercial property and lease it to your business, and our SMSF commercial property finance page covers that. Please confirm your own position with your accountant or licensed adviser.

Usually not. Interest during construction is normally capitalised, meaning it is added to the facility rather than paid monthly. That matters more here than on a development, because most owner occupiers are still paying rent on their existing premises while the new one is built.

It should be identified and funded deliberately. The quantity surveyor reports against the building contract, so racking, services, signage, hardstand and compliance works sitting outside that contract need to be costed separately. Those works are where these facilities most often run short, because they fall between completion and the day you can trade.

Frequently because construction sits outside what that particular lender writes, rather than because of anything in your business. Some lenders list construction as unacceptable security outright, even where they would happily fund the purchase of the same building once it is built. Construction runs through a different panel, and matching a project to it is the work.

Yes. Where the site has consent, the purchase and the construction can sit under one facility with one valuation and no refinance in between. Where consent has not issued, the land is usually funded first and the construction facility follows once it does.

No. This page and this section are for commercial premises a business will occupy and trade from. Residential owner occupier construction is regulated consumer credit and a different kind of loan, so it is not what we arrange here.

Yes. Construction funding is written against a fixed price contract with a licensed builder, because that contract is what gives the lender certainty about the cost to complete and it is what the quantity surveyor reports against. Owner building sits outside what construction lenders will fund.

The development consent and construction certificate, the fixed price building contract, your last two years of business financials and recent management accounts, the contract of sale or title for the site, details of your builder, and a quantity surveyor report where one exists. We can give you an indicative position from the financials and the contract alone.

Most of the time, no. Where a project requires significant preparation due to its complexity, a small mandate fee may apply, and we will always be upfront about this before any work begins.

Although we are based in Sydney, we service clients across all major Australian cities, including Melbourne, Perth, Brisbane, the Gold Coast, Adelaide, Canberra and Hobart, along with their surrounding regional areas. Wherever your project is located, we can arrange your finance.

Although our main speciality is property loans for business owners, we also assist with asset finance and working capital. On asset finance, that covers the plant and vehicles a business runs, from forklifts and work vehicles to the equipment that goes into the new premises. On working capital, we arrange business overdrafts, lines of credit and cash-flow funding to carry the business through the build and the move.

Yes. That is our core ethos, helping you understand the right strategy, structure and clear advice from the first conversation. Moving from leasing to owning is one of the more common steps we help with, and your trading history does real work in the file. We will walk you through what the contribution looks like, how the term facility is priced and what the fitout needs to cover, before you commit to anything.

No. Arranging finance and advising on financial products are two different disciplines, and we do the first. What we bring is the credit analysis lenders require, the structuring of the facility, and the strategy for putting your application in front of lenders whose appetite matches it.

Because we act as a credit representative under an Australian Credit Licence, we do not give financial product, superannuation, taxation or legal advice, and nothing we provide should be taken as such. Where your circumstances need that input, we are happy to work with your accountant, financial adviser and solicitor to understand the full picture before anything is submitted.

The information on this page is general in nature and does not take account of your objectives, financial situation or needs.