Mixed-Use Property
Mixed-Use Property Mortgages in Ontario
Apartments upstairs, a shop downstairs, and a bank that can't decide which department owns your file. We look at the whole building: what it's worth, what's owed against it, and how the loan gets repaid.
Stonefield Capital provides private first and second mortgages on residential-anchored mixed-use property in Ontario: apartments above a ground-floor storefront or office, live-work units, and converted main-street buildings where the residential units carry most of the value. The building is underwritten as one asset on its equity and a clear exit rather than on zoning category, a tenant's business, or the borrower's income ratios. A Notice of Assessment is always requested to confirm no CRA arrears. Purely commercial property is out of scope. Borrowers are matched with a Stonefield-approved mortgage broker.
Why a Mixed-Use Building Falls Between Two Desks
A bank lends by category. The residential desk sees a commercial tenant on the ground floor and sends the file to commercial; the commercial desk sees a small, mostly residential building and sends it back. Add zoning that reads as commercial, an appraisal that needs both a residential and an income approach, or a vacant ground-floor unit, and a building with real equity stalls in the gap. Nothing about the equity changed; the file just didn't fit a box.
A private mortgage treats the building as one asset. Stonefield looks at the equity in the whole property, whether it would sell in its local market, and the exit — a refinance to an institutional lender once the building is stabilised, or a sale. The commercial component is assessed on the strength of the asset, not on the tenant's business projections. A Notice of Assessment is always requested to confirm there are no CRA arrears ranking ahead of the mortgage, and income documents may be asked for as context. You're then matched with a Stonefield-approved broker who structures the file and plans the exit.
The Play: Stabilise the Building, Then Refinance
Most mixed-use declines aren't about the building, they're about timing: a vacant unit, a conversion not yet finished, a lease not yet signed. A 1 to 12 month interest-only private mortgage carries the building through that window. Fill the ground floor, finish the units, get a year of rent on paper, and the same building that stalled between two bank departments becomes a straightforward institutional refinance, often with a commercial or small-multi lender who now has a stabilised income statement to look at. A Stonefield-approved broker maps that exit before the commitment is issued.
The Mixed-Use Files We See
The boundary is simple: primarily residential with a commercial element is in; a plaza or an office building with no residential use is not.
Apartments Over a Storefront
The classic main-street building: one or more units upstairs, a shop, café or office at street level.
Live-Work Unit
You live in the building and run the business from the ground floor, and the bank can't classify either half.
Converted Building
A former commercial building with residential units added above or behind, part-way through a conversion or just finished.
Vacant Ground Floor
The commercial unit is empty between tenants, so the bank's serviceability math fails even though the equity is intact.
Purchase With a Deadline
You're buying a mixed-use building and the bank's referral loop won't finish before closing.
Equity Take-Out
You own the building outright or with a small first and need to pull equity for another property, a renovation, or the business.
If you're not sure which side of the line a building sits on, send the address. We'll tell you the same day.
What Mixed-Use Owners Should Know
One Asset, One Decision
The building is underwritten on its equity and a credible exit, in first or second position. Zoning labels, the tenant's revenue and your income ratios are context, not the gate. No minimum credit score.
What to Send
The address, the current mortgage statement if there is one, a rent roll or lease summary for the units, and your most recent Notice of Assessment, which is always requested to confirm no CRA arrears. Income documents may be requested for context.
Matched With a Broker
You're connected with a Stonefield-approved mortgage broker who structures the loan, handles the paperwork, and plans the exit to institutional financing, usually within one business day.
Frequently Asked Questions
Will Stonefield lend on a building with a store downstairs and apartments upstairs?
What if the building is mostly commercial?
Does a vacant commercial unit stop the deal?
Do I need an appraisal?
How is it priced, and how long is the term?
How do I start?
Common Questions
A deeper answer on how mixed-use financing works and where the line sits.
What Is a Mixed-Use Property Mortgage in Ontario?Mixed-Use Building, Bank Can't Decide?
Get matched with a Stonefield-approved broker who underwrites the whole building on its equity, not its zoning label. Free, no obligation, most owners hear back within one business day.