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Residential-anchored mixed-use building in Ontario

Mixed-Use Properties

Private Mortgages for Mixed-Use Properties in Ontario

A storefront with apartments above, a live-work unit, a converted main-street building — mixed-use falls between the bank's residential and commercial desks. We underwrite the whole asset on equity and exit, not on which box it fits.

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Stonefield Capital provides private mortgage financing for mixed-use properties in Ontario — buildings that combine residential units with a commercial component, such as apartments above a storefront. Because these properties fall between conventional residential and commercial lending, banks often decline them. Stonefield underwrites on the property's equity and a clear exit strategy rather than on which category it fits.

Why Banks Decline Mixed-Use Deals

A mixed-use property is one building doing two jobs: residential units plus a commercial component — the classic being apartments over a store. That combination is exactly what conventional lenders struggle with. The residential department sees a commercial tenant and passes it to commercial; the commercial department sees a small, residential-heavy building and passes it back. The file falls into the gap between two desks and stalls.

Add the usual friction — zoning that reads as commercial, an appraisal that needs both a residential and an income approach, a vacant or turning-over commercial unit — and a solid building with real equity gets declined on category alone. Stonefield underwrites the whole asset: the equity in the property and a clear exit, not which lending box it happens to fall into.

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Stonefield Insider Tip: Season It, Then Refinance

The move on a mixed-use file is almost always the exit. Banks will decline to purchase a mixed-use building all day, then happily refinance the same building once its commercial unit is leased and showing a few months of stable income. So use a short private mortgage to acquire or reposition the property, get the commercial component tenanted and seasoned, and refinance into conventional financing on the strength of that income. Stonefield's short, interest-only terms are built to be the bridge across exactly that gap — the plan is the exit from day one, not an afterthought.

Mixed-Use Situations We See

Most of these are good buildings that simply don't fit a conventional lender's category, not weak deals.

Apartments Over a Storefront

Residential units above retail or office — the classic main-street building banks route between two desks until it dies.

Live-Work Units

A unit that is part residence, part workspace. Conventional lenders can't classify it cleanly, so they decline.

Converted Main-Street Building

An older commercial building converted, or being converted, to include residential units above or behind.

Zoning or Appraisal Snag

Mixed-use zoning and dual-approach appraisals slow banks to a stop. We assess the asset directly.

Time-Sensitive Purchase

A mixed-use deal needs to close before a bank can even categorize it. We move on the equity.

Equity Take-Out

Pulling equity out of a mixed-use property you already own, for a renovation, a lease-up, or the next deal.

In every case Stonefield looks at the property's equity and the exit strategy — not the bank's category rules.

What Brokers Should Know

The Whole Asset, One Lender

We don't split a mixed-use building between a residential and a commercial desk. It's assessed as one property, by one lender, on its total equity.

Equity and Exit, Not Category

Qualification is the equity position and a clear exit — a refinance once stabilized, or a sale. The zoning label doesn't drive the decision.

A Bridge, Priced by the Deal

First or second position, interest-only, a short bridge to a conventional takeout. Pricing follows position and loan-to-value — see current ranges on our rate page.

Frequently Asked Questions

What counts as a mixed-use property?
A property that combines residential and commercial use in one building — most commonly residential units above a ground-floor storefront or office, but also live-work units and converted main-street buildings. Stonefield finances residential-anchored mixed-use property in Ontario: buildings where the residential component is the core of the value, with a commercial element alongside it.
Why do banks decline mixed-use deals that clearly have equity?
Because conventional lending is organized by category, and a mixed-use building doesn't fit one. The residential team treats it as commercial; the commercial team treats it as too small or too residential. The equity can be strong and the file still stalls between the two. Stonefield underwrites the whole asset on its equity and exit, so the category gap isn't a dealbreaker.
Do you finance purely commercial property?
Stonefield focuses on residential and residential-anchored mixed-use property in Ontario. A building that is primarily residential with a commercial component — apartments above a store — is in scope. A purely commercial property, such as a standalone retail plaza or an office building with no residential use, generally is not. If you're not sure where a specific building lands, send it over and we'll tell you quickly.
First or second position on a mixed-use property?
Both. Stonefield lends in first or second position on mixed-use property in Ontario, structured around the equity available and the exit plan. As with any private mortgage, position and loan-to-value drive the pricing — current ranges are published on our rate page rather than quoted here, since they change.
Will a mixed-use deal need an appraisal?
Usually not — Stonefield runs its own comparable-sales analysis, which saves your client a fee and several days. Mixed-use is one of the cases where a property is unusual enough that an appraisal is sometimes warranted; when it is, we flag that in our first response, never at commitment or the last minute.

Have a Mixed-Use Deal to Price?

Send us the address, your estimate of value and the story. Same-day commitments in most cases, equity-based underwriting, Ontario-wide.

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