Can I use my SMSF to buy my business premises?

In many cases yes, through a Limited Recourse Borrowing Arrangement (LRBA). The property must meet the ATO's 'business real property' test, the SMSF must lease it to your business at market rent, and strict trust and documentation rules apply. This is high-level information only — a licensed SMSF specialist and your accountant must confirm your situation before you commit.

What is a lease-doc loan?

A lease-doc loan uses the lease on the property (or the rent you'd pay your own entity as owner-occupier) as the primary servicing evidence, instead of full business tax returns. It can suit self-employed borrowers with strong rental coverage but less tidy financials. Terms, rates and acceptance vary by lender.

Owner-occupier vs commercial investment loan — what's the difference?

Owner-occupier means your own trading business will operate from the premises — some lenders offer slightly higher LVRs and sharper pricing for this because your business income supports the loan. Investment commercial means you'll lease to a third-party tenant, so the lender weighs tenant strength and lease term heavily. Different lenders have different appetites for each.

Can I buy my premises through a trust or company?

Yes — personal name, company, discretionary trust, unit trust and SMSF are all common. The right structure depends on tax, asset-protection and succession goals, not just the loan. Speak to your accountant before signing a contract; the lender will underwrite whichever entity is on title.

How long does a commercial loan take to settle?

Typical commercial settlements run 6–10 weeks from application to settlement — longer than a standard home loan because of valuations, lease and tenant documentation, and heavier underwriting. Preparing your financials and property documents up front shortens the timeline.

Speak to a Broker Now — 0432 634 648· Mon–Sat 9am–7pm

Owner-Occupier Commercial · Western Sydney

Stop Paying Your Landlord's Mortgage — Buy Your Business Premises

Q: Can my rent history alone qualify me for the loan?

No. A track record of paying commercial rent shows affordability and discipline, which helps your case, but the lender still assesses your business financials, debts, deposit and the property itself. Rent is one input, not a shortcut around full assessment.

By the Mortgagefy Team · Published 19 Oct 2026 · Last reviewed 19 Oct 2026

Rent you pay today builds your landlord's equity. For many Western Sydney business owners, the same monthly outgoing can service a commercial loan on premises they own — tradie workshops in Smithfield, warehouses in Yennora, offices in Parramatta, retail in Bankstown and Lakemba.

Get a Free Commercial Assessment Call 0432 634 648

General information only, not financial advice. Conditions apply.

Rent builds nothing. Repayments build equity.

Every rent cheque you send your landlord pays down their loan. When you buy the premises your business operates from, the same cash goes to principal and interest on your commercial loan. Over a 15–25 year horizon that difference is tens of thousands of dollars a year in equity you keep.

A steady rental history is useful because it shows the lender you've been paying this amount for years without missing a beat. It isn't a shortcut — the lender still assesses your business financials, existing debts, deposit position and the property itself. Rent history is one evidence point among several.

The practical question is: can the money you already pay in rent plus outgoings service a loan big enough to buy a comparable property? That depends on your deposit, the interest rate and the loan term. The calculator below gives you an indicative answer in under a minute.

One nuance worth knowing early: not all commercial loans are built for premises you'll occupy. Owner-occupier terms — where your trading entity will use the building — are usually sharper than investment-loan terms, because the lender gets to use your business income to service the debt directly. If a tenanted building is on the market, the price often reflects the lease, not the bricks, and the valuation basis (going-concern vs vacant-possession) can shift the number materially. Worth flagging to your broker before you make an offer.

Rent-vs-Buy Calculator

Enter what your business pays in rent and outgoings now. We'll show the indicative commercial loan that payment could service at a given rate and term. Already have a price in mind? Use the commercial property loan calculator for repayments and LVR.

Current annual rent ($)

Base rent your business pays per year.

Annual outgoings paid as tenant ($)

Council rates, water, insurance, strata — anything your lease makes you pay on top of rent.

Available deposit ($)

Cash, equity, or SMSF contribution available at settlement.

Interest rate (%)

Loan term (yrs)

Monthly rent + outgoings$0

Indicative loan this payment services$0

Indicative purchase price (loan + deposit)$0

Implied LVR0%

Assumptions & limits

Principal & interest, {{term}}-year amortisation at the rate shown.
Excludes stamp duty, legals, GST, and owner outgoings (rates, insurance, repairs).
Doesn't adjust for tax treatment of rent vs interest & depreciation.
Indicative only. Not a loan approval or borrowing-capacity assessment. Lenders assess your full financial position.

What commercial lenders actually look at

Deposit — typically 20–30%+

Owner-occupier commercial deals usually sit around 70–80% LVR; investment commercial 65–75%. Larger deposits open sharper rates and more lender choice. Commercial loans do not use LMI the way residential does — a thin deposit means a smaller loan, not an insurance top-up.

Business financials

Standard doc deals want two years of business tax returns and financial statements, plus personal returns. Lease-doc and low-doc paths exist for borrowers with a strong rental coverage ratio or shorter trading history, usually at higher rates and lower LVRs.

Property type

Vanilla industrial, retail and office in metro Sydney is well understood by most commercial lenders. Specialised premises (service stations, hospitality, child care) are considered "specialised commercial" and carry lower LVRs and a smaller lender pool.

Owner-occupier vs investment

If your own business will occupy the premises, lenders can rely on your trading income to service the loan — often a cleaner path than relying on a third-party tenant. Investment commercial is assessed heavily on tenant strength, lease length (WALE) and property yield.

Ways to hold the property

Structure sits between you, your accountant and your lender — tax, asset protection and succession all matter. Four common patterns we see with Western Sydney owner-occupiers:

Personal name

Simplest to arrange and finance. Rent your business pays yourself can be deductible to the business, and interest can be deductible against rental income. Little asset protection from a trading-business lens.

Company

Common for property held long-term inside a corporate group. Flat company tax rate on rent; capital gains discount for individuals is not available to companies.

Trust (discretionary or unit)

Flexible for distributing rental income to beneficiaries and separating the property from trading-business risk. Lenders are comfortable with trust borrowing when documentation is clean.

SMSF — leased back at market rent

An SMSF can borrow (via a Limited Recourse Borrowing Arrangement) to buy premises that meet the ATO's "business real property" test and then lease them to your own business at arm's-length market rent. There are strict trust-deed, documentation, lease and lending rules — this is high-level only. A licensed SMSF specialist and your accountant must sign off before you commit.

This is general information only, not financial, tax or legal advice. Confirm your situation with a licensed credit adviser, accountant and SMSF specialist.

Who this suits

Tradies & builders

Workshop + yard space with vehicle access.

Wholesale & logistics

Industrial warehouses in Yennora, Smithfield, Moorebank.

Manufacturing

Light-industrial units in Seven Hills, Wetherill Park.

Medical & dental

Clinical suites in Parramatta and Liverpool health precincts.

Retail & hospitality

Strata shopfronts in Bankstown and Lakemba high streets.

Professional services

Suites in Parramatta CBD and smaller offices across the west.

Areas we cover across Western Sydney

Parramatta — commercial strata offices and medical suites around the CBD and the Westmead health precinct.

Bankstown — high-street retail, mixed-use shopfronts and professional suites.

Liverpool — medical, allied-health and small commercial around the hospital corridor.

Lakemba — strata retail and food-service shopfronts along the main street.

Wetherill Park — mid-size industrial units and warehouse-with-office stock for trades and wholesalers.

Smithfield — light-industrial workshops and factory units with hardstand and rear-yard access.

Yennora — warehouse and distribution space along the rail-served industrial corridor.

Moorebank — logistics-focused industrial close to the intermodal terminal.

Seven Hills — industrial estates with light-manufacturing and showroom units.

Girraween — compact industrial strata, popular with trades moving out of home workshops.

Frequently asked questions

Most commercial lenders want a 20–30% deposit, meaning an LVR of 70–80%. Owner-occupiers running a profitable business can sometimes stretch to 80% LVR; investment commercial typically caps around 65–75%. Deposit requirements vary by lender, property type and your financial position.

Commercial loans don't use Lenders Mortgage Insurance in the way residential loans do. Instead, lenders set stricter LVR caps and may require a higher deposit, personal guarantees or additional security.

In many cases yes, through a Limited Recourse Borrowing Arrangement (LRBA). The property must meet the ATO's "business real property" test, the SMSF must lease it to your business at market rent, and strict documentation rules apply. High-level only — confirm with a licensed SMSF specialist and your accountant.

A lease-doc loan uses the lease on the property (or the rent you'd pay your own entity as owner-occupier) as the primary servicing evidence, instead of full business tax returns. Terms, rates and acceptance vary by lender.

No. A track record of paying commercial rent helps your case, but the lender still assesses your business financials, debts, deposit and the property itself. Rent is one input, not a shortcut around full assessment.

Owner-occupier: your trading business operates from the premises — some lenders offer slightly higher LVRs and sharper pricing. Investment commercial: you lease to a third-party tenant, so tenant strength and lease term weigh heavily. Different lenders have different appetites.

Yes — personal name, company, discretionary trust, unit trust and SMSF are all common. The right structure depends on tax, asset-protection and succession goals. Speak to your accountant before signing a contract.

Typical commercial settlements run 6–10 weeks from application. Preparing financials and property documents up front shortens the timeline.

Want to model repayments across different rates and terms? Try our Sydney home loan calculators for repayment, stamp duty and borrowing power.

Get your free Sydney commercial property assessment

Tell us what you pay in rent and what you can put down — we'll map which commercial lenders fit your deposit and your business financials.

Start Your Free Assessment Call 0432 634 648

General information only. Conditions apply. Mortgagefy is Credit Rep 532656 under ACL 348324.