Mixed-use property finance

Mixed-use property sits between commercial and residential, and lenders weight the split between shopfront and dwellings very differently. Go direct and one lender's read on that blend decides your LVR and whether the deal proceeds at all. As commercial mortgage brokers, we know which lenders are comfortable with mixed-use, how they treat the commercial-to-residential ratio, zoning and separate titles, and how to structure the loan to the actual income profile. That gets the asset in front of the lenders comfortable with this kind of deal rather than being penalised by one that reads it too conservatively, subject to serviceability, lender appetite and approval.

Yes, and more often than buyers expect. A lender can advance up to 100% of the purchase price when you add security you already own, usually your home or another commercial property, set up as a cross-collateralised facility. The exact structure depends on your file, so talk to us and we will map it.

Mixed-use property finance is a commercial mortgage used to buy property with both commercial and residential components on the same title, such as a shop with apartments above. LVR and lender appetite depend on the income split and how the property is used. Ardent Capital Group is a Sydney-based finance brokerage arranging mixed-use finance across Australia.

Ardent Capital Group brings the same method to every client: execution and strategy, clear advice for smart lending, and long-term growth. That means the right lender, structure and timing, straight advice so you borrow with confidence, and today's deal built toward where you want to be tomorrow. We are specialists in helping business owners secure finance to purchase their own property, and we understand the complex structures that often sit around it, including multiple trusts, holding companies and self-managed super funds. Mixed-use property sits across residential and commercial at once, so the split is set up so the shopfront and the dwelling above both work for the numbers and for a funder genuinely comfortable with that blend. We stay with you as the holding grows into a portfolio. Every figure is subject to serviceability, lender appetite and approval.

Most banks have separate lending teams and credit policies for residential and commercial property. When the two appear on the same title, the deal falls between policies and neither team has clear authority to assess it. Some banks apply residential rules to the whole building, which underfunds the commercial component. Others apply commercial rules to the residential income, which either caps the LVR unnecessarily or adds conditions that don't make sense. Lenders who genuinely understand mixed-use assets have a single framework that accounts for both income streams appropriately.

Mixed-use properties usually gear to 60% to 70%, and the balance between commercial and residential income moves you within that range: a residential-dominant property can sit closer to residential terms. The exact figure depends on the split and your profile, so talk to us and we will map it.

Mixed-use properties are typically valued on a capitalisation of income basis for the commercial component and a comparable sales basis for the residential component, with the two values combined to arrive at the total property value. Some valuers apply a single commercial capitalisation approach to the whole building. The methodology used can affect the assessed value significantly, which is why it matters which valuer a lender selects and whether they have genuine mixed-use experience.

For a straightforward mixed-use purchase, most clients receive indicative credit terms within 48 to 72 hours. Formal approval typically follows within two weeks, as the income assessment is more involved than a single-use property. Trust structures, SMSF lending and multi-lot strata purchases take longer. We will give you a realistic timeline before you commit to a purchase schedule.

For a full-doc application, most lenders require two to three years of business financial statements and tax returns, personal tax returns for all guarantors, and a copy of the contract of sale or expression of interest. That said, many enquiries come from self-employed owners who do not fit neatly into a standard full-doc assessment. Non-bank lenders offer alt-doc and low-doc options where income can be evidenced through an accountant's declaration, BAS statements or bank statements. These products typically carry slightly higher rates but open the door for borrowers whose paperwork understates income. We work through your income situation upfront and identify whether full-doc, alt-doc or low-doc is the right fit for you.

Yes, it is possible, and we arrange these. It is also one of the more intricate purchases in commercial finance, and the detail is what decides whether it works. The fund borrows under a limited recourse borrowing arrangement, so the property sits in a separate holding trust and the lender can only come after that one property. From 10 August 2026 a new arrangement can only be used for business real property: this is the catch on a mixed-use asset. A shop or office used wholly in a business generally qualifies. A building with a residential flat above it does not, so a new arrangement cannot be used to buy it, no matter how good the commercial tenancy is. Your operating company leases the property back from the fund, in writing, at market rent supported by an independent appraisal, and the rent has to actually be paid. Cross-collateralisation is not available inside super, so the fund needs its own deposit and the 100% LVR structures described elsewhere on this page do not work here. Lenders cap SMSF lending below a standard purchase, generally between 65% and 75%, and want cash left in the fund after settlement. We know this sounds complicated. It is, and that is exactly why we do it every day. Reach out to our team and we will guide you through the entire process. We structure the finance, tell you which lenders will take a mixed-use property as SMSF security and on what terms, and bring in the SMSF specialists and licensed advisers who set the fund side up. You will not be working it out on your own. Get that right and it is a solid, compliant structure.

Yes, in some cases. Where the mixed-use building is held under a strata plan with separate commercial and residential lots, it may be possible to finance each component separately, a commercial mortgage for the shop lot and a residential investment loan for the dwelling above. This can result in better overall pricing because each component is assessed under the appropriate lending framework. Whether it is possible depends on the strata structure and the lender. We model both options where relevant.

Often, yes. A decline from your bank does not necessarily mean the deal is not fundable. Banks have rigid credit policies, and mixed-use property does not always fit neatly within them. Non-bank lenders assess deals differently, and sometimes a structuring or presentation issue is all that stood between you and an approval. We will give you an honest assessment of what is possible before proceeding.

Most of the time, no. We are paid a commission by the lender once your loan settles, so there is no cost to you. Where your financials are complex, your structure is unusual, or the deal requires significant preparation before it can go to a lender, we may charge a small mandate fee depending on the complexity. We will always be upfront about this before any work begins.

Although we are based in Sydney, we service clients across all major Australian cities, including Melbourne, Perth, Brisbane, the Gold Coast, Adelaide, Canberra and Hobart, along with their surrounding regional areas. Wherever your mixed-use property is located, we can arrange your finance.

Although our main speciality is property loans for business owners, we also assist with equipment and vehicle finance and working capital for your business. On asset finance, that covers fit-out, equipment and machinery for the commercial tenancy, and company vehicles. On working capital, we arrange business overdrafts, lines of credit and cash-flow funding to cover supplier payments, staffing and cash-flow gaps in the operating business.

Yes. That is our core ethos, helping you understand the right strategy, structure and clear advice from the very first conversation. Our main borrower profiles are established business owners and property investors seeking finance from $100,000 upwards for their company, so a first commercial loan is well within our wheelhouse. Smaller sole-trader and consumer-style ABN lending sits outside our field.