Dominion Lending CentresPart of the DLCG, Canada's #1 mortgage originator · $84.5B in 2025.
Commercial · Mixed-Use & Retail

Mixed-use & retail mortgages.

Main-street buildings with apartments over shops, strip retail, strata storefronts and single-tenant assets across BC and Alberta — investment or owner-occupied.

Mixed-use sits between two rulebooks. Residential lenders won't touch the shops; commercial lenders discount the apartments — and one measurement decides which world your building lives in: keep the non-residential share within 30% of floor area and lending value and CMHC-insured pricing opens up, cross it and you're priced as retail. Pure retail has its own tension: the lender is really underwriting your leases, not your building. Our job is to measure first, package the rent roll properly, and put the file in front of the lender whose rulebook it actually fits.

What we finance

From corner building to retail plaza.

Main-street mixed-use

The classic: shops at grade, apartments above. The workhorse asset of every BC and Alberta downtown.

Strip retail & plazas

Multi-tenant convenience and neighbourhood strips — anchored or unanchored.

Single-tenant retail

Free-standing stores and pad sites where one lease carries the building.

Strata storefronts

Individual commercial strata units — owned to occupy or to lease out.

Restaurant & service retail

Food-service and personal-service premises, owner-run or tenanted.

Owner-occupied retail

Buying the storefront your own business trades from — underwritten on the business plus the property.

Refinance & equity release

Repricing a maturing loan or pulling equity out of a stabilized building for the next move.

Bridge & repositioning

Vacancy lease-up, renovation, or tenant turnover funded short-term, then refinanced at stabilization.

Lender comparison

Three ways to fund mixed-use & retail.

The right lane depends on the residential split, the leases, and the timeline. We size every file against all three before recommending one.

Conventional (banks & credit unions)
Best for: Stabilized mixed-use or retail with a solid rent roll and creditworthy tenants
Leverage: Up to 65% LTV investment; owner-occupied premises can reach 75%
Rate: GoC + 150–250 bps for strong covenants
Term: 1–10 year terms; 25–30 year amortization
DSCR: 1.20–1.35x minimum, stress-tested at contract + ~150–200 bps

The default lane for this asset class. Lenders underwrite the leases as hard as the building — term, covenant, and renewal options on the commercial units drive the credit decision.

CMHC-eligible (residential-majority mixed-use)
Best for: Buildings where apartments dominate — non-residential within 30% of floor area and lending value
Leverage: Insured multi-unit leverage becomes available once the 30% test is met
Rate: Insured spreads — materially inside conventional pricing
Term: Insured multi-unit terms; long amortization available under CMHC programs
DSCR: Underwritten under CMHC's multi-unit framework rather than bank retail policy

The 30% line is the most valuable measurement in mixed-use: on the right side of it, your corner building with six suites over two shops is priced like an apartment building, not like retail. We measure before we place.

Private capital
Best for: Vacancy, tenant turnover, non-bankable condition, or a closing a bank can't meet
Leverage: Up to 70–75% of as-is or as-complete value; first or second position
Rate: 8.5%–13% with a 1.5%–3% lender fee; interest-only
Term: 6–24 months, open after 3–6 months
DSCR: Asset- and exit-based — the lease-up or renovation plan matters more than in-place income

Buys the time a retail asset often needs: fill the vacancy, season the leases, then refinance to conventional — the window is usually 12–24 months of trailing performance.

Rates, ratios, and leverage are typical ranges for illustration — last reviewed July 2026 — and depend on the asset, the leases, the sponsor, and market conditions. Run the numbers with our commercial mortgage payment calculator and cap rate calculator, then we confirm your file's numbers in writing.

Case Studies

Files like yours.

Case studies for this category are being added — check back soon. In the meantime, see how we structure real commercial files on our case studies page.
Mixed-use & retail FAQ

Common mixed-use financing questions.

How do I finance a building with apartments above a shop?+

That's a mixed-use mortgage, and the split between residential and commercial space decides everything. If the non-residential portion stays within 30% of both floor area and lending value, the building can qualify for CMHC-insured multi-unit financing at meaningfully better leverage and pricing. Beyond that line, it's placed as conventional commercial — still very financeable, just priced as retail.

How much down payment do I need for a retail or mixed-use property?+

Conventional lenders typically advance up to 65% of value on investment retail and mixed-use — so plan on roughly 35% down. Owner-occupied premises can reach about 75% financing. Residential-majority mixed-use that clears CMHC's 30% test can go substantially higher under insured multi-unit programs.

What matters more to the lender — the building or the tenants?+

The leases. Two identical buildings can price very differently based on who's paying rent: lease term remaining versus the mortgage term, tenant covenant strength, renewal options, and how much income sits with a single tenant. A building full of month-to-month tenants reads as vacancy risk, however full it looks.

Can I buy the storefront my own business operates from?+

Yes — as an owner-occupied commercial mortgage, typically when your business occupies the majority of the space. The lender blends your business's cash flow with any other tenant income, and leverage usually runs stronger than pure investment retail.

Why do lenders ask about former dry cleaners and auto shops?+

Environmental risk. Retail sites with historic dry-cleaning, automotive, or fuel uses commonly trigger a Phase II environmental investigation on top of the standard Phase I, and unresolved contamination can stall any lender. We pull the property's use history early, because environmental findings — not the mortgage approval — usually set the closing timeline.

How does a strata commercial unit differ from a whole building?+

Strata storefronts are financed like commercial condos: the lender reviews the strata corporation's finances, bylaws, and any restrictions on use alongside your own covenant. Leverage tends to sit at the conservative end of the retail range, and lender appetite varies more than for freehold — one more reason the file benefits from being shopped.

What happens if the building has vacancy right now?+

Conventional lenders underwrite in-place income, so meaningful vacancy usually means a smaller loan — or a decline. The standard play is a private or short-term bridge against the property's value while you lease up, then a refinance into conventional pricing once the rent roll has 12–24 months of trailing performance.

How long does a mixed-use or retail mortgage take to close?+

Plan on 45–75 days for a conventional file — appraisal, environmental, and lease review set the pace — and 10–25 days for a private bridge with an appraisal in hand.

File preparation

Financing a retail property? Have these ready.

On this asset class the leases are the collateral — a clean lease package moves the file faster than anything else.

Talk to a specialist

Have a property in mind? Score it first.

Tell us about the building and the leases — and whether the residential share might clear CMHC's 30% line — and we'll tell you which lane fits before you spend a dollar on reports.