Hi, there’s a property in Glebe I’m thinking of buying …….. it is a townhouse with a commercial zoning and a business operating on ground floor…I would live upstairs. My question is what percentage of the purchase price could I borrow?

Hi Chris,

For a mixed use security, banks wouldn't allow more than 80% LVR on the purchase price.

If you want to have a chat about this further, feel free to get in contact.

Kind regards,

Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au

Hi Chris,

What an excellent location and a great opportunity.

Based on your brief information here it would be entirely reasonable for most lenders to go to 80% of the property value given its commercial mixed use nature. With a little more detail about the premises, the business operating out of there and the residential component upstairs you may be able to get higher, but it really subject to each lender if you wanted to get higher.

One other aspect that would be prudent to consider is how much you are purchasing the property for as most lenders have a restriction around the maximum loan amount depending on loan to value ratio (LVR) - For example at 80% LVR most lenders can lend up to $1,200,000 - as you borrow more of the property value the maximum loan amount is decreased.

I trust that provides some perspective?

Regards

Craig
nicholasfs.com.au

Hi Chris,
It depends on how the property division is structured.
Some properties have been strata titled, so that it becomes a simple home loan at up to 95% and a commercial loan at up to 70%.
If the properties are on one title, no subdivision i.e. often called mixed use then as a guide there are some lenders who will put this through at 80% but the majority will only go to 70%
In your position I would be planning to go in with a 30% deposit, anything less than this is a bonus.

Good Luck with the negotiations

Awesome Albert