Mixed-use properties are a common and valuable asset class across BC's urban corridors. We structure financing that integrates income from two distinct sources—commercial and residential—under unified underwriting frameworks to maximize your property's cash flow.
Mixed-use properties combine commercial space on lower floors with residential units above. This asset class requires lenders who can underwrite income from two distinct sources under two different regulatory frameworks. BC Commercial Mortgage specializes in these structures, ensuring that:
Commercial at grade, residential above.
Lenders who focus only on residential rental may not be comfortable with commercial retail risk, and vice versa. We bridge this gap.
If residential generates 85%+ of income, we can sometimes unlock multifamily terms which are superior to pure commercial debt.
Many BC urban mixed-use assets are built to municipal density mandates, requiring specialized vacancy assumptions in underwriting.
Urban centres like Vancouver, Victoria, and Kelowna have seen massive mixed-use development driven by density-oriented planning. We help owners navigate:
A single commercial mortgage covers the entire building, but the rate reflects the blended property type risk. Lenders experienced with BC mixed-use understand that the commercial component may have higher turnover, while the residential side provides the "anchor" stability for debt service.
Review our current rate guide for blended mixed-use pricing tiers.
Yes. CMHC MLI Select is available for mixed-use properties where the residential component is the primary use. Properties with dominant commercial space typically do not qualify for CMHC programs.
Most institutional lenders in BC advance between 65% and 75% LTV for mixed-use assets, depending on the covenant of the commercial tenants and the location of the asset. View LTV Guide.
No. A single commercial mortgage charge is registered against the title of the building. Underwriting is based on the consolidated Net Operating Income (NOI) of both components.
Lenders underwrite based on actual contracted rents, not projected market rents. Low-rent residential tenancies can reduce your DSCR and limit the total loan amount available.
