Which loan for a shop and dwelling

Discussion in 'Loans & Mortgage Brokers' started by au contraire, 29th Feb, 2016.

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  1. au contraire

    au contraire Well-Known Member

    Joined:
    30th Dec, 2015
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    Location:
    Melbourne
    Hi all,

    My partner and I are considering purchasing a shop and dwelling, primarily to reside in and once we put in some grunt work to improve it, to use the shopfront to conduct a business additional to our existing occupations.

    How would this be treated for loan purposes? Some cursory research I have carried out indicates we would only be able to purchase with a commercial loan at 70% LVR if the property was used as our residence (as opposed to rented) which seems a bit illogical in circumstances where the purchase price would be well within our affordability even without having any part of the property tenanted.

    Am I on the right track..?
     
    au contraire, 29th Feb, 2016
    #1
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

    Joined:
    18th Jun, 2015
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    6,684
    Location:
    Perth WA + Buderim Qld
    Yes - it's the shop part of it that makes it unsuitable for normal resi lending. LVR may vary between lenders though.
     
    Jess Peletier, 29th Feb, 2016
    #2
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