CMHC Multiplex

Buy a duplex, triplex, or fourplex with just 5% down.

If you live in one unit, you can buy a 2-to-4-unit property with as little as 5% down (up to $1.5M). The rent from the other units helps you qualify — making this one of the easiest ways for first-time buyers to get into the market.

5% down on 2–4 unitsUp to $1.5M purchaseRent helps you qualifyBig-6 bank ratesLive in one, rent the restStack with FHSA savings

5-star rated| FSRA #13737| 5-min pre-qualification

Written by the Mortgage Squad Advisors Editorial Team · Reviewed by the Principal Broker, FSRA #13737 · Updated June 2026

Buying a 5+ unit apartment building?

Borrow up to 95% of the building's value.

CMHC's MLI Select program rewards energy upgrades, affordable rents, or accessible units with a longer 50-year payback and lower down payment.

MLI points · stacked50/100

+Energy+Affordable+Accessible

70%

Max LTV unlocked

40yr

Amortization unlocked

5-200

Units (residential)

-150bps

vs uninsured commercial

Get pre-approved MLI calculator

Maya · AI · 24/7

Does my project qualify for MLI Select?

5-star rated| FSRA #13737| 50+ langs

Federal policy now treats 2-4 unit owner-occupied properties like single-family — meaning you can put as little as 5% down (insured) and use rental income from the other units to help qualify. We've placed dozens of multiplex files since the program expanded.

What you get

Why Canadians choose Mortgage Squad Advisors.

5% down on first $500k, 10% on portion above (up to $1.5M) — insured

Owner must occupy at least one unit

Rental income from other units used for qualification (50-100% offset)

A-lender rates (no investment-property premium)

Stacks with FHSA + RRSP HBP for first-time buyers

Path to portfolio: refinance into investment property in 12-24 months

We model the rent stack to maximize your qualifying income

Maya runs cap-rate models on every prospect

Maya · 24/7 AI advisor

Question about multiplex mortgage? Maya answers instantly in 50+ languages.

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How it works

Three simple steps, no pressure.

Confirm Property

MLS listing, current rent roll (or market estimate). We confirm CMHC insurability.

Build The Income Stack

Your salary + 50-100% of rental income, depending on lender. We pick the highest-allowing lender.

Close + Lease Up

Fund the property. Lease the units. Refinance in 1-2 years to release equity for the next one.

Run the math first

Can I really buy a duplex or fourplex with only 5% down?

Yes — if you live in one of the units. Recent federal and insurer policy now treats an owner-occupied 2-to-4-unit property much like a single-family home: as little as 5% down on the first $500,000 and 10% on the portion above, up to a $1.5M purchase price, with the loan insured by CMHC, Sagen, or Canada Guaranty. Compare that to a pure rental, where you'd need a flat 20% down and no insured option. This is the classic "house hack": you occupy one unit as your principal residence while the rent from the remaining units helps carry the mortgage. For a first-time buyer it's often the single most efficient way into ownership — you build equity in a property that partly pays for itself. We've placed dozens of these files since the program expanded and know which lenders move fastest on them. See our first-time buyer page for the savings stack.

How does rental income from the other units help me qualify?

This is where a multiplex outperforms a single-family purchase at the same price. Lenders treat the rent from units you don't occupy as qualifying income — either by rental offset (typically 50%, subtracted from the property's carrying costs) or add-to-income (up to 100%, added to your gross income before the debt-service ratios are calculated). At higher purchase prices the difference is decisive: on a $1.2M triplex generating roughly $4,000/month from two rented units, a 100%-addition lender can credit nearly $48,000 of annual income that a 50%-offset lender would only partly recognize. That swing can be the line between approval and decline. Because policies vary widely across our 100+ lenders, including specialty multi-unit programs, we model your rent stack against each one and place the file where your qualifying income lands highest.

What's the difference between an owner-occupied and a non-owner-occupied 2-4 unit?

Occupancy is the hinge the entire program turns on. If you occupy at least one unit, the property qualifies for the insured low-down-payment path — as little as 5% down with A-lender rates and no investment-property premium. The moment you don't occupy it, the same building becomes a pure investment property: 20% down minimum, no insured option, and pricing that reflects the higher risk. Many buyers don't realize that owning another home elsewhere can disqualify the duplex from the insured stream if you can't credibly establish it as your principal residence. The strategic play we run with clients is to buy owner-occupied, lease up the building, then refinance into a conventional investment property mortgage in 12 to 24 months — releasing equity for the next purchase while keeping your low-down entry cost intact.

What happens once I go to 5 or more units?

At five units or more you leave the residential insured world entirely and enter multi-family commercial financing, most often through CMHC MLI Select. The mechanics are different and, for the right project, more powerful. Instead of a fixed down-payment threshold, MLI Select awards points for energy efficiency, affordability, and accessibility commitments — and those points stack to unlock higher loan-to-value (up to 95% on the strongest applications) and amortizations stretching to 40 or even 50 years. A residential multiplex is qualified largely on your personal income; an MLI Select deal is underwritten primarily on the building's net operating income and the points you can commit to. That means more documentation, longer timelines, and energy modelling — but materially better leverage and cashflow. Our multi-unit team structures the point stack so the numbers clear before you're deep into the process.

What about zoning, appraisals, and adding a unit with renovation financing?

The cleanest multiplex deals are properties where each unit is legal and conforming — a registered legal second or third unit, not an unpermitted basement apartment that an appraiser or lender will refuse to recognize. Confirm municipal zoning and any unit registration before you firm up, because an illegal unit can sink both the appraised value and the rental income you were counting on to qualify. The appraisal matters more here than on a single-family file: it establishes both market value and the market-rent figure lenders lean on. There's also real upside in stacking strategies — buying a duplex and converting it to a triplex by adding a legal unit, financed through a renovation mortgage or a construction draw. As an FSRA-licensed brokerage (#13737) with fully disclosed fees and service in 50+ languages, we coordinate the appraisal, zoning, and financing pieces so they line up at closing.

FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

Why is multiplex now so attractive?

Federal policy expanded insured multiplex financing in 2024-2025. Pre-policy, even owner-occupied 2-4 unit needed 20% down. Post-policy: as little as 5%.

Do I have to live in one of the units?

Yes — owner-occupancy is a CMHC requirement for the insured program. If you don't occupy, it becomes investment property (20% min).

How is rental income counted?

Lender-dependent. 50% offset (subtracts from your costs) is most common. 100% addition (adds to your gross income) is more powerful but available at fewer lenders.

What if the units aren't currently rented?

An appraiser provides a market-rent estimate. Lenders typically use 50% of that estimate for qualification.

Can I do this as a first-time buyer?

Absolutely — and many of our best multiplex stories are first-time buyers. Combine FHSA + RRSP HBP for down payment + rental offset for qualifying income.

Can I do a duplex if I own another home?

Yes — but it changes the program. If you're not occupying the duplex, it's investment property (20% down, no insured option).

Are 5+ units the same?

No — 5+ unit is multi-family commercial, financed under CMHC MLI Select with different rules and rates. Better cashflow, harder to qualify.

What's the cap rate I should target?

Most clients target 4.5-6% cap on a multiplex in major Ontario markets. We model this with you for any prospect.

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