Quick answer: Mixed-use property is assessed according to the actual title, zoning, floor-area or income mix, use and lender policy. A residence above a shop is not automatically a residential mortgage, and commercial terms may apply even where part of the asset is residential.
Questions borrowers, investors and developers commonly ask
- The building has a shop downstairs and apartment upstairs — is it residential or commercial finance?
- Can mixed use reduce the maximum LVR?
Classification is lender-specific
The valuer and lender examine predominant use, title, zoning, tenancy and marketability. Different lenders can classify the same asset differently.
Model the commercial outcome before signing
Do not assume residential pricing, term or deposit until the property has been tested with suitable lenders.
Related guides
General information only. Commercial-property and development lending criteria vary by lender, transaction, security and market conditions. This is not legal, tax or investment advice.
Frequently asked questions
The building has a shop downstairs and apartment upstairs — is it residential or commercial finance?
Mixed-use property is assessed according to the actual title, zoning, floor-area or income mix, use and lender policy. A residence above a shop is not automatically a residential mortgage, and commercial terms may apply even where part of the asset is residential.
Can mixed use reduce the maximum LVR?
The valuer and lender examine predominant use, title, zoning, tenancy and marketability.
Will every lender treat this the same way?
No. Commercial and development lending policy varies materially by lender and transaction.
Should I apply before the structure is tested?
For material or unusual transactions, test lender fit and the funding structure before creating formal applications.
Sources and verification
Need help matching this to a business-finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
