Financing an Owner-Occupied Industrial Purchase in Metro Vancouver
Owner-users get better terms than investors on the same building. With Metro Vancouver industrial pricing about a third below the 2022 peak, the financing structure is what decides whether a purchase closes.
September 17, 2026 · 2 min read · By Samuel Brahem, in association with NAI Commercial
Why lenders like owner-users
A business that operates from the building it owns has more reason to keep paying than a landlord with a vacant bay. Lenders price that in. Owner-occupiers typically get 75% LTV against 65–70% for investment product, spreads 25–50 basis points tighter, and 25-year amortizations instead of 20.
On a 10,000 sq. ft. strata unit in Richmond or Burnaby trading between $4.5 million and $5.3 million at Q2 2026 pricing, those differences move the monthly payment and the equity cheque by real money.
Where the money comes from
- Big Six banks: prime plus 0.75% to 1.5%, five-year terms, three years of statements, DSCR of 1.25x or better, 60–90 days to process
- BC credit unions (Coast Capital, Vancity, Westminster Savings): more flexible on younger businesses, rates 25–50 basis points higher
- BDC: prime plus 2% to 4%, LTV up to 90% in some cases, tolerant of short operating histories
- CSBFP: government-backed up to $1 million, capped at prime plus 3%, but the ceiling rules out most Metro Vancouver strata units
What you will be asked for
Three years of corporate financials, with DSCR of 1.20x to 1.30x on normalized income. Personal guarantees from anyone holding 25% or more. A 25% down payment minimum, with 30–35% making the file materially stronger, and the funds seasoned 90 days in your account. A Phase I environmental is mandatory on industrial; a Phase II follows if the Phase I flags anything.
Lenders approve the business first and the building second.
Structure it before you sign
Hold the property in a separate corporation and lease it to the operating company at market rent with escalations. Lenders underwrite that lease. Q2 2026 net asking rents give the benchmark: about $18.66 per sq. ft. in Surrey, $19.20 in Langley, $19.67 in Burnaby and $20.10 in Vancouver.
Five-year terms at 5.25% to 6.50% are the norm in 2026. Rate gaps between terms have narrowed, so longer terms cost less to lock than they used to. Negotiate prepayment privileges of 15–20% a year if there is any chance you refinance early.
The timeline
Budget 90 to 120 days from accepted offer to closing: pre-approval in 2–4 weeks, appraisal and environmental in 3–5, underwriting in 2–4, legal and closing in 2–3. Sellers expect 45–60 day financing conditions. Get the lender package together before you write an offer, not after.
