Dreaming of building or purchasing a Mixed-Use property in Canada?
At Citadel Mortgages, we make it easy for our clients to buy Mixed-Use projects with our commercial lending department.
🏙️ Finance properties that combine commercial and residential uses
💼 Available through A, B, and private lenders
📊 Down payments typically range from 20% to 35%
🧾 Residential must make up 50%+ of floor space or income
🏦 Ideal for retail storefronts with apartments, live-work spaces, and office/residential combos
A mixed-use mortgage is a commercial loan used to finance properties that have both residential and commercial components. These buildings are common in cities and suburban cores where space optimization and zoning encourage live-work-use combinations.
Storefront + apartment buildings
Mixed-use low-rise (ground-floor office or retail with upper-floor residential)
Live-work townhomes
Boutique medical buildings with residential units above
Urban main street buildings
With Citadel Mortgages, you get access to expert structuring, accurate valuation guidance, and lender options that align with your project type and income mix.
🏘️ Real estate investors
🛍️ Owner-operators using one commercial unit (e.g. dentist, salon, convenience store)
🧑🎓 Small developers or landlords looking to renovate and rent
🏗️ Buyers of infill lots for new mixed-use construction
Mixed-use mortgages are underwritten differently than fully residential or fully commercial ones.
Key Factors Lenders Consider:
| Criteria | What Lenders Expect |
|---|---|
| Property Type | Mixed zoning (commercial-residential), permitted use |
| Residential Share | Typically ≥50% of income or square footage |
| Tenant Leases | Signed, stable leases with rent schedules |
| Appraisal Method | Income approach (cap rate), possibly split with res. |
| Borrower Experience | Preferred but not required |
| Credit & Income | Required for residential portion or owner-occupied use |
🏦 Conventional Mortgages: For well-leased, stable properties with strong tenants
💼 Alt-A / B-Lender Mortgages: For borrowers with lower credit or self-employment
💸 Private Mortgages: Quick closings, construction projects, or major renovations
🏗️ Construction-to-Permanent Loans: For new build mixed-use developments
At least 50% of the space or income must be residential
Confirmed leases or rental income from tenants
Property zoning must allow mixed use
Appraisal supporting both income streams
Down payments typically range from 20% to 35%
A retail bakery with two apartments above
A chiropractor’s office with personal residence upstairs
A building with 3 commercial bays below and 4 residential units above
A triplex with a ground-floor art gallery
Yes. If you’re owner-occupying the residential unit, some lenders may offer better terms, depending on the percentage of income coming from residential.
Only under strict conditions. CMHC typically requires the residential portion to be at least 50% and 5+ rental units. We’ll advise on a case-by-case basis.
Appraisers typically use the income approach, factoring both residential and commercial rental income. Vacancy rates, tenant stability, and cap rate assumptions play a role.
We offer construction financing and draw mortgages for new mixed-use builds. These can convert to long-term financing once the property is stabilized.
Mixed-use properties are a smart way to diversify income and make the most of high-demand urban or suburban locations. Whether you’re buying, refinancing, or building new, Citadel Mortgages provides tailored mixed-use mortgage solutions backed by industry expertise and lender access.