Which loan for a shop and dwelling

Discussion in 'Property Finance' started by au contraire, 29th Feb, 2016.

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  1. au contraire

    au contraire Well-Known Member

    30th Dec, 2015
    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..?
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    18th Jun, 2015
    Perth WA
    Yes - it's the shop part of it that makes it unsuitable for normal resi lending. LVR may vary between lenders though.