Not all mixed use properties are the same!

Properties are assessed as either being mixed residential and commercial, industrial and residential, or rural and residential.

Getting a mixed use property loan will depend on how your property is defined by the lender.

How much can I borrow?

  • If the property can be used as a home: If the property is a normal house and the zoning allows the property to be converted back for residential use, then you may be able to borrow up to 90% of the property value.
  • If you rent out the attached residence: You can borrow up to 80% of the property value with a commercial loan.
  • If you live in the attached residence: You can borrow up to 75% of the property value with a special type of commercial loan.
  • If you use the property for your business: You can borrow up to 75% of the property value, depending on the strength of your business financials.

Ultimately, you must meet all standard bank criteria regarding affordability and asset position but your loan will be priced using a commercial risk matrix.

Do you need help financing your property?

Call us on 1300 889 743 or complete our free assessment form and one of our mortgage brokers will let you know your options.

How do banks view mixed commercial & residential properties?

Many older commercial buildings have residences attached to them.

The most common example is a shop front on a major road which also has an apartment upstairs for the owners to live in.

The problem is that this type of property is often owner-occupied.

Banks prefer commercial properties to be leased out because if the tenant gets into financial trouble, the landlord can usually afford the loan, or vice versa.

In addition to this, many business owners do not want to live at their workplace so these properties may not be in high demand when being sold or leased.

What do the banks assess?

There are a number of factors that banks and lenders look at to determine your eligibility for a commercial loan:

  • The location of the property.
  • Your personal income and financial position.
  • The strength of the tenant and length of the lease.
  • The yield and cap rate.
  • The bank valuers’ recommendations.

Do you qualify for a mortgage to buy a mixed use property?

Please call us on 1300 889 743 or complete our free assessment form to find out how we can help you.

Commercial loans versus residential loans

Real estate that has a mixed purpose does not always fall under commercial lending.

Rural and residential mixed use property can often be bought with a residential home loan from a number of our lenders.

Some of our lenders will accept land up to 50 hectares and offer residential rates.

Most lenders will assess properties that have commercial elements such as retail, office space, industrial or manufacturing as commercial properties.

However, if the property is a converted terrace, it may still be used as a residential property.

In these cases, we may be able to help you to obtain a residential loan.

A residential loan has a lower rate, lower fees and a longer term than a commercial loan.

Our brokers are experienced with both commercial and residential loans.

We’re able to assess your situation and determine which type of loan will best suit your needs.

Call us on 1300 889 743 or complete our free assessment form to see how we can help you.

Does real estate zoning affect how much I can borrow?

Mixed use zoning may enable you to borrow slightly more if the property can be used 100% as a residential home.

However, all other zoning types will not affect the valuation and borrowing capacity unless they in some way prevent the property from being used to its full potential.

What types of properties are considered ‘mixed use’?

Retail properties with an apartment upstairs are the most common type of mixed property.

Converted terrace houses that are now used as offices or as a retail showroom can also fit into this category.

However, there are many converted warehouses that are used as creative spaces with a residence within them. In most cases, these properties have exposure on a main road and rear lane access which makes them suitable for a resident and a business.

Call us on 1300 889 743 or complete our free assessment form and one of our specialist brokers will be able to assist you.

What financial documents will I need?

The documents you require will depend on the purpose of the real estate being purchased.

If you’re planning to use the property as an investment then you’ll need to prove that a current lease is in place and other evidence of the rent that is being generated.

For an owner-occupied property, you’ll need to provide financials for your business or other evidence that it is trading profitably.

If you have your own PAYG job then the income from that job is also taken into account if you provide payslips.

How can I get my loan approved?

Our mortgage brokers are experts in getting mixed use property loans approved. We can assess your situation and determine the best way to represent it to the lenders.

We can assess each mixed property on its own merits. If the zoning isn’t going to change, or the property’s purpose isn’t going to change, then we’ll have to match it up to the right lender.

As mortgage brokers, we can determine which lender will be best suited for your security property.

Call us today on 1300 889 743 or complete our free assessment form to find out how we can help you.

  • BJohnson

    I’ve a residential property which has a shop attached (cafe) in front. I want to refinance the property, do you think lenders have any issue regarding the nature of the property?

  • Hi B Johnson,

    Mixed use properties usually fall under commercial lending due to the zoning of the property however some lenders may still give you a residential home loan. Also, you could borrow higher if you are living in the property.

    You could speak to a mortgage broker to know more about these.

  • Jessep678

    The property I’d like to buy is a mixed use property that can be used as a residence. The thing is, it also has 3 units that are on the same title so will that be a major issue?

  • Hey there,

    For a mixed use property with up to 4 units / dwellings on one title, you may be able to borrow up to 80% of the property value although most lenders may restrict this to around 70% of the property value. We deal with a few select lenders that can consider lending more though it will be on a case by case basis.

  • Graebner

    I know the property I want to buy is a mixed-use property but I have no idea on how the bank will assess the location of it. Any way I can find out without enquiring with the bank itself?

  • Hey Graebner,

    A simple way of finding out how the banks will assess the location of your property is through using our postcode location calculator. Have a crack at it and enquire online directly through it if you want help for your loan application:

  • Jim

    I’ll be renting out the attached residence so I’m okay with the 80% commercial loan but is there any way that I can avoid the general security agreement?

  • Hi Jim,
    Yes, you can avoid the need for a GSA but it will depend on the strength of your application, your commercial property, and the residential property that you’re using to secure the loan. Please check this out for details:

  • Clancy

    Is a Cat 2 location considered good or is that bad?

  • Medium sized regional centres fall under a Category 2 location and these are generally considered to be low to medium risk so it is pretty good.

  • Jennifer V

    I live in a small rural town in Illinois and want to purchase the place next door which is zoned commercial. It is a steel frame building that has been converted into a 2 bedroom 1 bath apartment. The people living there have been there for at least 8 years. I don’t know how to go about getting financing in this situation. Any help?

  • Hi Jennifer
    We’re in Australia. Please talk to a local mortgage broker and likely they can assist.

  • Xavier

    Can I buy a mixed-use property and get the first home buyers grant?

  • Hi Xavier,
    It will depend on whether the property has a commercial or a residential usage. To get the first home buyers grant (FHOG), you have to usually live in the property and it should be a newly built or constructed. For more info on FHOG, please go through page Also, it depends on the state as state governments have varying requirements and eligibility criteria for the grant.

  • Josh Hunter

    I’m looking at starting a farm brewery on an agricultural zoned lot (per zoning requirements in Virginia). I would like to either:

    1) purchase land, build a structure to use for the brewery, and build a small residence in which I’d live
    or 2) purchase an existing farm+residence that could eventually be converted into a brewery

    Would one of these options work/work better than the other in terms of getting a residential-ish terms?

  • Hi Josh,
    We can assist with both residential and commercial loans, however, we cannot advise you as to which would be better at this point. Real estate that has a mixed purpose does not always fall under commercial lending. Rural and residential mixed-use property can often be bought with a residential home loan from a number of our lenders. Please fill in our online enquiry form: to find out if you qualify. Please note that we only deal with home loans in Australia.

  • Amber Russell

    Me and my boyfriend are currently living in what is considered a “mixed use” building. It needs some work, which isnt the issue, as my boyfriend and his dad have done construction and electrical and plumbing work their entire lives. We’re struggling because we cannot find any information on the zoning of this property and we want to purchase it, as the landlord has made us an offer we can’t refuse. The building consists of a large studio(downstairs) and 2 small offices(downstairs) and a one and two bedroom apartment upstairs. We want to transform the downstairs into 3-4 small one bedrooms as well and a small hair salon for myself. However, without knowing the zoning on this building, we are stuck bc 1. We dont know what type of loan we will need and 2. We dont know if we’re going to have to rezone the building. HELP, where do I find this zoning info and what type of loan do I need? He offered it to us for $40,000. In our area, it is a very small town…so we can benefit from this Reno as owners and as a town. As its hard for people to find places to live here bc the housing market is always expensive, you cannot find a house until somebody dies off, and there are hardly ever any apartments for rent.