April 18, 2026 Retail & Consumer Services

What Goes Into a Homewares and Furniture Store Commercial Mortgage

If you run a homewares or furniture store, your premises carry real weight. Showroom presence, parking, loading access and ceiling height influence revenue, and the fit-out is costly to replicate. Many operators rent that footprint while funding stock, display suites and delivery capacity. Ownership can convert those rent cheques into repayments on a long-term business asset.

Ardent Capital Group is a specialist in commercial mortgages for homewares and furniture store operators across Australia. Our team can help you move from tenant to owner, with clear lending advice on structure and strategy.

Access to finance from $100K to $10M+, tailored to owner-occupied premises and investments.
Over $500M in funding facilitated across a decade for more than 1,000 borrowers.
Bank, non-bank and private lender coverage for mainstream and specialist property types.
We service Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.

Reasons to own your premises

Fit-outs are capital heavy. Display lighting, electricals, HVAC sized for large floor plates, signage, fixtures, gondolas, racking, mezzanines and polished concrete floors are expensive, and make-good clauses can erode value at lease end. Location anchors the customer base. Homemaker centres, bulky goods precincts and main road showrooms build habit and drive-by traffic, and proximity to complementary anchors like Bunnings or large format grocers matters. The sector holds up across cycles, supported by household formation, renovation activity and insurance replacements. Repayments build equity in a tangible asset while stabilising occupancy costs over time.

Main drivers for ownership:

Control over fit-out longevity, with less risk of losing sunk cost on exit.
Cost certainty through the cycle, replacing rent with repayments that build an asset.
Site control for logistics, including truck access, loading bays and click-and-collect.
Potential capital growth in well-located bulky goods centres or arterial road frontage.

Buying may not suit if your lease horizon is short with a planned relocation, if you are piloting a new format and need flexibility, or if capital is better used in inventory and marketing for a growth phase. The decision sits with you.

How the finance works for a homewares and furniture store

Deposit and LVR. Owner-occupied retail premises are standard commercial security, which is the bucket that gears highest. Non-bank lenders commonly fund up to around 80 per cent, so a deposit from about 20 per cent is common. The major banks assess owner-occupier commercial case by case rather than publishing a set figure, which is where a broker earns their place. Where you already hold additional property to offer as extra security, some lenders will fund up to 100 per cent of the purchase price.

Loan term and structure. Non-bank lenders commonly write terms of 25 to 30 years, while the banks' published commercial products run around 10 to 15 years. Structures include principal and interest for steady amortisation, or interest only for a period to prioritise cash flow during a refit or peak stock build.

Security and serviceability. The property is the primary security. Lenders assess business financials, rent saved versus proposed repayments, gross margins, inventory cycles and delivery costs. They look for stable trading, evidence of seasonality management and sustainable director drawings.

Owner-occupier treatment. Lenders generally favour owner-occupied purchases. Alignment of occupancy, trading performance and asset care reduces risk compared with a pure investment.

How the purchase is usually structured

Many homewares and furniture store operators hold the freehold in a separate entity, such as a company or trust, and lease the premises to the trading business at a commercial rent. A lender then reads the inter-entity rent as the serviceability line and takes the property as security, which keeps the operating risk and the property clearly separated.

SMSF purchases. Commercial premises generally qualify as business real property, so a self-managed super fund can buy the building and lease it to your store at market rent. Retail is standard commercial, so SMSF lending sits in the 65 to 80 per cent band rather than the lower specialised band. A purchase runs through a limited recourse borrowing arrangement, with the property held by a custodian trust until the loan is repaid. The trade-offs include contribution and borrowing limits, extra compliance and strict arm's-length rules. We take care of the finance and the right lender for the security, while your accountant, and an SMSF adviser where relevant, confirm the tax and compliance side.

What underwriters focus on

Business financials. Two to three years financial statements, BAS, management accounts and commentary on seasonality and stock turns.
Serviceability. EBITDA, rent coverage compared with proposed repayments, add-backs, and sensitivity to promotions such as Boxing Day and EOFY sales.
The property and valuation. Zoning for bulky goods or large format retail, showroom-to-warehouse split, ceiling height, parking ratios, loading access, sightlines from arterials and tenancy mix in the centre.
Deposit and equity position. Cash, equity in residential or other commercial property, and any vendor terms or incentives.
Lease and occupancy. If the property is held in a separate entity, the leaseback terms to the trading business, market rent support and remaining term. For part-tenanted sites, income quality and WALE.
Operational profile. Delivery fleet, click-and-collect integration, online share of sales and fulfilment model.

A specialist broker who understands homewares and furniture formats can target lenders that rate bulky goods centres, large format retail and showroom-warehouse hybrids correctly, then structure the furniture showroom property loan around how you occupy the site.

A worked example

This is an illustrative scenario that shows the kind of situation we can assist with, and how the thinking might run.

Situation: A family furniture retailer in Newcastle operates a 1,200 sqm showroom-warehouse in a bulky goods strip. Current rent is $260,000 p.a. plus outgoings with a three-year term remaining. A nearby 1,400 sqm freehold is listed at $4.2M with better truck access and parking.
Profile: Revenue $5.8M, EBITDA $620,000, strong supplier terms, peak sales November to January.
Options weighed:
- Owner-occupied purchase via a property trust at up to 80 per cent LVR, with $600,000 cash and a top-up against the director's residential equity covering the balance, duty and costs.
- SMSF purchase at around 70 per cent LVR, leaseback at market rent, accepting lower gearing and liquidity trade-offs.
- Delay the purchase, negotiate lease flexibility, and build a larger deposit through retained earnings.
Structures considered: 20-year principal and interest, or an initial 2-year interest only period to smooth cash flow during a showroom refresh. A separate $300,000 equipment facility for racking, POS and signage. Option to leverage your equity in an existing investment property to strengthen the deposit.
Possible lending on settlement: Between $3.1M and $3.4M subject to valuation, serviceability and lender credit appetite. Acquisition costs estimated at $240,000 to $280,000.
How we would approach it: we would map the ranges, structures and repayments, then set out rent versus ownership, risk and capital priorities so the choice is clear. The figures above are illustrative, not confirmed outcomes, and depend on valuation and final terms.

Beyond the mortgage: homewares and furniture store finance

Asset finance. Fund delivery trucks, forklifts, pallet jacks, warehouse racking, POS and scanning systems that keep stock moving and sales recorded accurately.
Fit-out and refurbishment finance. Showroom fit-out finance pays for lighting grids, signage, HVAC upgrades, gondolas, joinery and polished concrete or timber flooring without draining working cash.
Working capital loans. Working capital for a furniture store supports seasonal inventory buys ahead of launch events, catalogue drops and Boxing Day or EOFY promotions.
Business overdraft. Smooth cash flow for supplier terms, deposits on custom orders and refunds on change-of-mind returns.
Refinancing and debt consolidation. Reprice legacy facilities, consolidate merchant advances and tidy up multiple equipment leases.
Construction and renovation. Add mezzanine storage, reconfigure showroom-warehouse ratios, or widen roller doors and loading zones.
Business or premises acquisition finance. Buy an additional store, buy out a partner, or secure the freehold in a homemaker or bulky goods centre.

Owning the premises can free equity over time, and a refinance can consolidate facilities so your mortgage, fit-out and working capital work together.

Working with a homewares and furniture store finance specialist

Ardent Capital Group arranges and structures commercial mortgages for homewares and furniture operators, aligned to how you intend to hold and occupy the property. We understand showroom-warehouse hybrids, bulky goods centres and the cash flow rhythms of this sector.

With a background in financial planning, Nick and the Ardent Capital Group team can map a structure that suits your goals, then work with your accountant for the final confirmation. We service Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas, and have helped facilitate over $500M in funding over a decade for over 1,000 borrowers. If you are weighing up buying your showroom, our team gives you clear options and a straightforward path.

Common questions

How much deposit do I need to buy a furniture showroom-warehouse? Retail is standard commercial security, so plan for a deposit from around 20 per cent, plus stamp duty and costs. Strong owner-occupier profiles can gear up to about 80 per cent.

Can my SMSF buy the premises and lease it to my store? Yes. Commercial premises generally qualify as business real property, so your SMSF can own the building and lease it back at market rent, subject to borrowing limits and compliance rules. It runs through a limited recourse borrowing arrangement with the property held by a custodian trust.

Will lenders count rent saved in serviceability? Lenders usually compare current rent with proposed repayments and include that saving in serviceability, alongside EBITDA, margins and seasonality.

What LVR is common for bulky goods centres versus high street retail? Both are standard commercial security. Large format retail in recognised homemaker precincts and well-located high street shops can gear up to around 80 per cent for owner-occupiers, subject to valuation and tenant mix.

Can I use equity in my home or another property for the deposit? Yes. Many owners use a separate facility against residential or commercial equity to boost the deposit or cover duty and fit-out costs.

Can I get interest only during a refit or heavy stock intake? Some lenders allow an interest only period to manage cash flow during a refurbishment or seasonal inventory build, then switch to principal and interest.

What features support valuation for a furniture retail property? Arterial exposure, ample parking, high clearance ceilings, flexible showroom-to-warehouse ratios, compliant loading bays and strong centre anchors all support valuation.

Written by

Nick Chong

Managing Director, M.AppFin, Dip. Mortgage Mgmt

Nick holds a Bachelor of Agricultural Economics, a Master of Applied Finance and an Advanced Diploma in Financial Planning. He founded Ardent Capital in 2016 after more than a decade in financial planning and mortgage broking. For the past ten years he has led a team of finance specialists, mortgage advisers, brokers and credit analysts, all working to secure optimal outcomes for clients and always acting in their best interests. The team brings both a qualitative and a quantitative approach to every deal.