Owner Occupier

A trading business will seek an owner-occupier commercial mortgage to fund an acquisition or refinance a property for use as business premises. If said property is owned by an individual who is a shareholder fo a limited company, lenders can treat the individual and company as the same entity even though they are not legally.

Maximum borrowing is capped lower than typical residential mortgages, between 70%-80% depending on the business profile. Terms are typically available up to 20 years although this may be longer if there is succession planning. Ultimately, any successful application will be determined by debt serviceability. HGC Finance will help calculate adjusted net profit from your accounts to compare against lender’s affordability rules and their respective stress test.

Mortgages for trading businesses are probably the most competitive sector within the commercial finance industry. Loan to values can reach 100%, with interest rates starting from Bank Base + 2%. We are also able to negotiate with your own bank on your behalf.