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.
Copyright © 2018 Citadel Mortgages
Head Office – 150 King Street West 2nd Floor Suite 335, Toronto, ON M5H 1J9
Alberta Office – 421 7th Avenue S.W., 30th Floor, Calgary, Alberta, T2P 4K9
Nova Scotia Office – 1701 Hollis Street, Suite 800 Halifax, NS B3J 3M8
Saskatchewan Office – 2010 – 11th Avenue 7th Floor Regina Saskatchewan S4P0J3
Newfoundland Office – 1 Church Hill – Suite 201-522 St. John’s Newfoundland A1C 3Z7
New Brunswick Office – 500 St George Street, Moncton NB, E1C 1Y3
British Columbia Office – 900-2025 Willingdon Avenue, Burnaby BC, V5C 0J3
Manitoba Office – 330 St. Mary Avenue, Winnipeg, MB, R3C 3Z5
Disclaimer
Citadel Mortgages operates an information-based website designed to display mortgage rates from its trusted partners. While we strive to present accurate and up-to-date information, we cannot guarantee the precision of the rates or other details provided at all times. Citadel Mortgages assumes no liability for errors, inaccuracies, or damages resulting from the use of the information on this site. Terms and conditions apply, and it is essential to consult directly with a licensed mortgage broker for personalized advice and accurate details about specific products and services. Please note that the rates displayed are for informational purposes only and may differ from actual rates offered.
Citadel Mortgages is licensed to operate in the following jurisdictions:
Instant Approval, Conditional Approval, Pre-Approval
All approvals are subject to credit and underwriting approval. Not all borrowers will qualify for conventional or equity financing. The receipt of an application does not constitute a financing approval or guarantee of an interest rate. Restrictions apply. The Annual Percentage Rate (APR) is subject to underwriting and approval, and fees and terms may vary. Contact us for the most current rates and further information about specific products. OAC (On Approved Credit).
We remain committed to delivering outstanding service, transparency, and ethical practices. Please note that some rates are province-specific and may change without notice. Rates may not be available in Quebec; please contact us directly to confirm availability and approval.
All rights reserved.
Esso and Price Privileges are trademarks of Imperial Oil Limited. Imperial Oil, licensee. Mobil and Speedpass+ are trademarks of Exxon Mobil Corporation or one of its subsidiaries. Imperial Oil, licensee. For terms and conditions, visit Terms