We show that off-site processes and multiorbital physics have a crucial impact on the phase diagram of quantum gas mixtures in optical lattices. In particular, we discuss Bose-Fermi mixtures where the intra- and interspecies interactions induce competing density-induced hopping processes, the so-called bond-charge interactions. Furthermore, higher bands strongly influence tunneling and on-site interactions. We apply a multiorbital interaction-induced dressing of the lowest band, which leads to renormalized hopping processes. These corrections give rise to an extended Hubbard model with intrinsically occupation-dependent parameters. The resulting decrease of the tunneling competes with a decrease of the total on-site interaction energy, both affecting the critical lattice depth of the superfluid to Mott-insulator transition. In contrast to the standard Bose-Fermi Hubbard model, we predict a large shift of the transition to shallower lattice depths with increasing Bose-Fermi attraction. The applied theoretical model allows an accurate prediction of the modified tunneling amplitudes and the critical lattice depth, both being recently observed experimentally.