Duplex, Triplex & Fourplex Mortgage Financing in Ontario 2026 Guide
Hi, WealthTrack founder David Pipe here.
Thinking about buying a duplex, triplex, or fourplex in Ontario? You're not alone. Multi-unit properties offer one of the smartest paths to homeownership I've seen—live in one unit, rent out the others, and let your tenants help pay your mortgage. It's a strategy that's helped thousands of Ontarians build wealth while reducing their housing costs.
But here's what most buyers discover once they start the process: financing a 2-4 unit property is completely different from getting a regular mortgage. Your bank might say no even though you're qualified for a single-family home. The down payment requirements change. And calculating rental income for qualification? That's where things get really tricky.
In this guide, I'll break down everything you need to know about duplex, triplex, and fourplex financing in Ontario—from down payment requirements to which lenders actually approve these properties, and most importantly, how to use rental income to qualify for a larger mortgage. After helping hundreds of buyers navigate this exact process, I know exactly where the confusion happens and how to avoid the costly mistakes.
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Understanding 2-4 Unit Property Classifications in Ontario
Before we dive into financing, let's clarify what we're actually talking about. In the lending world, there's a big difference between multi-unit properties and other living arrangements.
A duplex has two separate units, a triplex has three units, and a fourplex (sometimes called a quadplex) has four units. Here's what matters to lenders: properties with 1-4 units are treated as residential mortgages, while 5+ units are considered commercial properties with completely different financing rules. This is an important threshold—stay at 4 units or under and you can access residential mortgage rates and programs.
What Actually Qualifies as a "Unit"?
Lenders have specific criteria. Each unit must have:
A separate kitchen with cooking facilities
Its own bathroom
A separate entrance (or at minimum, a clearly divided entrance)
Individual utility meters (hydro, gas) in most cases
This is where people get confused. If you have a basement apartment, that doesn't automatically make your home a duplex for financing purposes. Unless that basement suite is properly permitted with the municipality and has all the requirements above, lenders won't count it as a separate unit.
Property Types That Qualify
Multi-unit properties come in several configurations:
Side-by-side duplexes where units share a common wall
Stacked units with apartments above and below each other
Converted single-family homes that were legally split into multiple units
Purpose-built multi-units designed and constructed as multi-family from the start
All of these can qualify for residential mortgage financing as long as they meet the legal definition and are properly zoned and permitted.
Common Confusion Cleared Up
The question I get asked most often: "I have a basement apartment—does that make this a duplex?" Usually, no. A basement apartment in a single-family home is considered a secondary suite, not a separate unit, unless it's been properly permitted with separate services and meets all municipal bylaws.
Also, be careful not to confuse buying a "duplex" with buying half of a semi-detached home. Those are completely different transactions.
Key Takeaway: Banks care about legal, properly permitted units with separate services. An unpermitted basement suite won't count toward financing, and could actually hurt your application if discovered during appraisal.
How Much Down Payment Do You Need for a Duplex, Triplex, or Fourplex?
This is where multi-unit financing gets interesting. Your down payment requirement depends entirely on whether you plan to live in the property or treat it as a pure investment.
Owner-Occupied Multi-Unit Properties
If you're going to live in one of the units, you're eligible for residential mortgage rules with lower down payment requirements:
5% minimum down on the first $500,000 of the purchase price
10% down on any portion between $500,000 and $1 million
Properties over $1 million require 20% down regardless
Let me show you what this looks like with real numbers:
$650,000 Duplex Example:
First $500K: $25,000 (5%)
Remaining $150K: $15,000 (10%)
Total down payment: $40,000
$450,000 Triplex Example:
Entire amount under $500K: $22,500 (5%)
Total down payment: $22,500
Non-Owner Occupied (Investment Property)
If you're not planning to live in any of the units, the rules change dramatically:
Minimum 20% down payment required with no exceptions
CMHC default insurance is not available for investment properties
Higher interest rates (typically 0.15-0.30% more than owner-occupied)
Here's a comparison to make this crystal clear:
Property Value | Owner-Occupied Down Payment | Investment Down Payment
$400,000 | $20,000 (5%) | $80,000 (20%)
$600,000 | $40,000 (6.7%) | $120,000 (20%)
$800,000 | $75,000 (9.4%) | $160,000 (20%)
$1,000,000 | $200,000 (20%) | $200,000 (20%)
Why the Difference Matters
This is the "house hacking" advantage everyone talks about. By living in just one unit of your duplex, triplex, or fourplex, you can access the same 5% down payment programs available to first-time homebuyers purchasing a single-family home. Meanwhile, your tenants in the other units are helping to pay your mortgage.
The catch? You need to genuinely intend to live there as your primary residence for at least 12 months. Lenders verify this, and mortgage fraud is a serious offense.
Additional Costs to Budget
Beyond the down payment, budget for:
Closing costs: 1.5-4% of purchase price (legal fees, land transfer tax, title insurance)
CMHC insurance premium: 2.8-4% of mortgage amount if putting less than 20% down (can be added to mortgage)
Multi-unit property inspection: $800-$1,200 (more thorough than single-family)
First and last month's rent: If units already have tenants, you may need to provide this
Initial repairs and maintenance fund: $5,000-$15,000 recommended
Pro Tip: Want the lowest down payment? Plan to live in one unit for at least 12 months. This unlocks 5% down financing even on a fourplex worth $600,000 or $700,000.
Using Rental Income to Qualify for Your Mortgage
Here's where multi-unit financing gets really interesting—and where most buyers find they can afford more than they initially thought. Lenders will count rental income from your property toward your qualifying income, which can significantly boost your borrowing power.
But there's a catch: they don't count 100% of the rent you'll collect.
The Basic Rule
Lenders typically use 50-80% of rental income when calculating your qualification, not the full amount. Why the discount? They're accounting for:
Vacancy periods between tenants
Property maintenance and repairs
Property management costs (even if you self-manage)
Non-payment risk
The difference between a lender counting 50% versus 80% of your rental income can mean qualifying for $50,000 to $100,000 more in mortgage—or not qualifying at all. This is why working with a broker who knows which lenders offer the best rental income policies is crucial.
Scenario 1: Property with Existing Tenants
This is the easiest situation for qualification. If you're buying a duplex, triplex, or fourplex that already has tenants in place:
What lenders need to see:
Signed leases showing current rent amounts
Ideally, leases with 6+ months remaining
Proof of rental payment history (bank deposits or rent receipts)
Current tenants in good standing (no eviction proceedings)
How it's calculated:
Let's say you're buying a triplex where two units rent for $1,800 each per month, and you'll live in the third unit.
Total rental income: $3,600/month
Lender uses 50% (conservative): $1,800/month counts toward income
Lender uses 80% (aggressive): $2,880/month counts toward income
That $1,080 difference per month translates to roughly $60,000-$80,000 more in borrowing power.
Scenario 2: Vacant Units (You're Buying Empty)
When units are vacant, lenders rely on an appraiser to determine "market rent"—what the units could reasonably rent for in the current market.
The process:
Appraiser researches comparable rentals in the area
They provide a conservative market rent estimate
Lender applies their rental income percentage (50-80%)
This amount helps you qualify
Important note: Appraisers tend to be conservative with market rent estimates. If you know the area well and believe rents could be higher, that's great for your future cash flow—but don't count on the appraiser seeing it that way for qualification purposes.
Some lenders won't count vacant unit income at all, which is another reason why broker access to multiple lenders matters so much.
Scenario 3: You're Living in One Unit, Renting the Others
This is the most common scenario for first-time multi-unit buyers—the "house hacking" approach.
Example: You're buying a fourplex for $800,000. You'll live in one unit and rent out the other three at $1,600 each.
Your personal income: $85,000/year ($7,083/month)
Rental income: $1,600 × 3 units = $4,800/month
Lender counts 50%: $2,400/month added to your income
Total qualifying income: $9,483/month
Without that rental income, you might qualify for a $550,000 mortgage. With it counted, you could qualify for $750,000+. That's a massive difference.
How This Affects Your Borrowing Power
Let me give you a real-world example from a client we helped last year:
Client situation:
Annual income: $80,000
Down payment saved: $50,000
Wanted to buy: Triplex in Hamilton
Without rental income:
Qualified for approximately: $425,000 purchase price
This limited them to single-family homes in less desirable areas
With rental income (two units at $1,700/month, lender counted 80%):
Rental income added: $2,720/month
New qualifying income: $9,387/month
Qualified for approximately: $625,000 purchase price
Result: Purchased a $610,000 triplex, lives in one unit, tenants cover 70% of the mortgage
Documentation You'll Need
To use rental income for qualification, gather:
Current leases (if property has tenants)
Rental appraisal (if vacant, lender orders this)
Previous year's tax returns showing rental income (if you already own rentals)
Bank statements proving rental deposit history
Estoppel certificates from existing tenants confirming lease terms
Municipal permits proving units are legal
Warning: Never assume you can count 100% of rental income. Budget based on 50% to be safe—anything more is a bonus. I've seen too many buyers get disappointed when their bank only counts 50% and they expected 100%.
Ready to see how much you can qualify for? Book a free consultation and we'll calculate your exact buying power using current lender rental income policies.
Which Lenders Approve Multi-Unit Properties in Ontario
Not all lenders treat multi-unit properties the same way. Some have better rental income policies, some offer better rates, and some specialize in these exact situations. Here's what you need to know about your options in 2026.
Big Banks (Traditional Lenders)
Who they are: TD, RBC, BMO, CIBC, Scotiabank, National Bank
Pros:
Best interest rates (typically prime minus 0.50% to prime minus 1.00%)
Strong brand recognition and stability
Branch access if you prefer in-person service
Various mortgage products and features
Cons:
Strictest qualification requirements
Usually only count 50% of rental income
Less flexible with self-employed or commission income
May have internal limits on multi-unit approvals
Best for: Buyers with strong credit (720+), stable T4 employment, and 20%+ down payment who want the absolute lowest rates
Typical rental income calculation: 50% of market rent
Monoline Lenders (Broker-Only Lenders)
Who they are: MCAP, First National, RMG, Merix, Street Capital, CMI, Lendwise
Pros:
More flexible rental income calculations (often 80%)
Better options for self-employed buyers
Faster approval times
More willing to approve unique properties
Competitive rates (typically only 0.10-0.25% higher than big banks)
Cons:
No branches (everything done digitally or through your broker)
Less name recognition
May require mortgage insurance even with 20% down in some cases
Best for: Self-employed buyers, commission-based income, recent immigrants, or anyone who needs that 80% rental income calculation
Typical rental income calculation: 80% of market rent
This 30% difference in rental income calculation is huge. On a property with $4,000/month in rental income:
Big bank (50%): $2,000 counts toward income
Monoline (80%): $3,200 counts toward income
That extra $1,200/month can increase borrowing power by $70,000-$100,000
Credit Unions
Examples: Meridian, DUCA, Kindred, FirstOntario, Alterna Savings
Pros:
Relationship-based lending (they know you as a person, not just a number)
Sometimes more flexible with unique situations
Local market expertise
Competitive rates for members
Cons:
Policies vary dramatically between credit unions
Must usually be a member first (requires opening accounts)
Some don't lend on multi-units at all
Often restricted to specific geographic areas
Best for: Existing members with a relationship, buyers in smaller Ontario markets where credit unions are strong
Typical rental income calculation: Varies widely (40-80%)
Alternative and Private Lenders
When you might need them:
Credit score below 600
Recent bankruptcy or consumer proposal
Self-employed with limited documentation
Unconventional property that banks won't touch
Need to close quickly (under 3 weeks)
The reality:
Interest rates: 7.99-12.99%
Terms: Usually 1-2 years maximum
Fees: 1-4% of mortgage amount (lender fees)
Down payment: 20-35% minimum
Strategy: Alternative lenders are rarely your end goal—they're a bridge. Use them to get into the property, then refinance to a better rate once you've improved your credit, have tax returns showing rental income, or the property has appreciated.
Best for: Buyers who don't qualify anywhere else but have a solid plan to refinance within 1-2 years
What About CMHC-Approved Lenders?
If you're putting down less than 20%, your lender must be CMHC-approved to offer mortgage default insurance. The good news: most major banks and monolines are CMHC-approved. Alternative lenders typically are not, which is why they require 20%+ down.
Comparison Table: Lenders at a Glance
Lender Type | Typical Rate | Rental Income % | Min Down | Best For
Big Banks | 4.89-5.49% | 50% | 5-20% | Strong credit, stable employment
Monolines | 5.09-5.69% | 80% | 5-20% | Self-employed, need higher rental income count
Credit Unions | 5.19-5.89% | Varies | 10-20% | Members, smaller markets
Alternative | 7.99-12.99% | 100% | 20-35% | Bruised credit, temporary bridge
Rates shown are approximate for early 2026 and will vary based on your specific situation and market conditions
Expert Insight from the Field
Here's something most first-time multi-unit buyers don't realize: monoline lenders often give you better overall value than big banks for these properties. Yes, the rate might be 0.15% higher, but that 80% rental income calculation can be the difference between qualifying and not qualifying at all.
Last month, I had a client who was pre-approved at TD for $450,000. We sent the same application to a monoline lender who counted 80% of rental income instead of 50%. Result? Approved for $625,000. The slightly higher rate cost them an extra $45/month, but they could now afford a triplex instead of being stuck with a condo.
That's the power of working with a broker who knows these lender policies inside and out.
Other Qualification Requirements Beyond Down Payment
Down payment and rental income calculations are huge, but they're not the only factors lenders consider. Here's what else needs to be in order:
Credit Score Requirements
Multi-unit properties require higher credit scores than single-family homes:
Big banks: 700+ for best rates, 680 minimum
Monolines: 650-680 minimum, prefer 700+
Credit unions: Varies, usually 650-700
Alternative lenders: 550-600 minimum
Why multi-units need higher scores: Lenders see them as higher risk. You're managing multiple tenants, more can go wrong, and if you need to sell, the buyer pool is smaller.
Impact on rates: A 640 credit score versus a 760 score can cost you 0.50-1.00% more in interest. On a $600,000 mortgage, that's $250-$500 more per month.
Debt Service Ratios (GDS/TDS)
Lenders use two key ratios:
GDS (Gross Debt Service Ratio): Maximum 39%
Includes: Mortgage payment, property taxes, heating, 50% of condo fees (if applicable)
Must be under 39% of gross monthly income
TDS (Total Debt Service Ratio): Maximum 44%
Includes: Everything in GDS plus car loans, credit cards, lines of credit, other debts
Must be under 44% of gross monthly income
Here's where rental income helps: It increases your gross income, which lowers these ratios.
Example:
Your income: $7,000/month
Mortgage payment + taxes + heat: $3,200/month
GDS without rental income: 45.7% (TOO HIGH, you don't qualify)
Rental income added (80% of $2,400): $1,920/month
New qualifying income: $8,920/month
GDS with rental income: 35.9% (APPROVED)
Employment and Income Requirements
Standard employed (T4 income):
Minimum 2 years at same employer or in same field
Recent pay stubs (last 2-3 months)
Letter of employment
Sometimes: T4s or Notice of Assessment
Self-employed buyers:
Minimum 2 years in business
2 years of complete tax returns (T1 Generals, often with financials)
Income must be stable or growing
Some monolines offer "stated income" programs (higher rates, larger down payment)
Commission-based income:
2-year average of commission earnings
Must show consistent or growing income trend
Some lenders will use a 1-year average if you're in a strong growth trajectory
Multiple income sources:
All sources need proper documentation
Part-time or contract work usually needs 2-year history
Bonus income typically averaged over 2 years
Property Condition and Appraisal Requirements
Your property needs to pass muster:
Appraisal must confirm:
Property is in livable condition
Units are legal and properly permitted
Property value supports the purchase price
Market rent assessment for vacant units
No major safety issues (knob-and-tube wiring, foundation problems, asbestos)
Deal-killers we've seen:
Unpermitted units discovered during appraisal
Major electrical issues (knob-and-tube wiring)
Structural problems (foundation cracks, bowing walls)
Appraisal coming in $30,000-$50,000 below purchase price
Units not legally conforming to fire code
Always include a home inspection condition in your offer, and specifically request a multi-unit inspection that examines each unit separately plus all common systems.
Reserves and Liquid Assets
Some lenders want to see financial cushion:
6 months of reserves: Enough cash to cover 6 months of mortgage payments and property taxes
Especially important for: Non-owner occupied properties and buyers with tight debt ratios
Where it can come from: Savings, RRSPs (if not being used for down payment), investments, lines of credit in some cases
Down payment source matters: It can't be 100% borrowed. Most lenders want to see at least 5% coming from your own verified savings or a genuine gift from family (with a gift letter).
First-Time Buyer Considerations
Can you use first-time buyer programs? Sometimes yes, with conditions:
Home Buyers' Plan (RRSP withdrawal): Yes, if it's your primary residence (you live in one unit)
First-Time Home Buyer Incentive: Not available for multi-units in most cases
Land Transfer Tax Rebate: Available in some municipalities if owner-occupied, check local rules
GST/HST New Housing Rebate: May apply if it's a newly constructed multi-unit
Reality Check: Multi-unit properties are harder to qualify for than single-family homes. Plan for a 60-90 day approval process from application to firm approval, not the 2-3 weeks you might expect for a simple single-family purchase. The underwriting is more complex, and lenders are more cautious.
Common Mistakes to Avoid When Financing Multi-Units
After helping hundreds of buyers navigate multi-unit financing, I've seen the same mistakes repeatedly. Here are the seven most costly errors and how to avoid them:
1. Assuming You Can Count 100% of Rental Income
The mistake: Buyers calculate affordability using the full $4,000/month they'll collect in rent.
The reality: Lenders use 50-80%, so you'll qualify based on $2,000-$3,200/month instead.
The impact: You bid on an $850,000 triplex thinking you can afford it, but you actually only qualify for $700,000. You lose your deposit or scramble to find more down payment.
How to avoid it: Always budget using 50% rental income as your baseline. Anything above that is a bonus.
2. Not Verifying Units Are Legal Before Making an Offer
The mistake: Buyer assumes all units are legal because they're currently rented.
The reality: Many Ontario properties have unpermitted basement or attic units. If discovered during appraisal, the lender won't count that income—or worse, won't lend at all.
The impact: We've seen buyers lose $20,000+ deposits when their financing falls through because a "triplex" was actually a duplex with an illegal third unit.
How to avoid it: Before making an offer, call the municipality's building/planning department. Ask: "Can you confirm how many legal units exist at [address]?" Get it in writing if possible. Takes 20 minutes and could save you tens of thousands.
3. Forgetting About Property Management Time and Cost
The mistake: Treating rental income as pure profit without accounting for management.
The reality: Self-managing takes 10-15 hours per month (showing units, handling maintenance, collecting rent, dealing with tenant issues). Professional management costs 8-10% of monthly rent.
The impact: Your beautiful cash-flow projection falls apart when you realize you need to hire a property manager or you're spending every weekend dealing with tenants.
How to avoid it: Budget for professional management from day one, even if you plan to self-manage initially. Your time has value, and you might want that freedom later.
4. Underestimating Ongoing Maintenance Costs
The mistake: Using single-family home maintenance budgets for multi-units.
The reality: More units = more tenants = more wear and tear. Budget 1-1.5% of property value annually for maintenance, plus turnover costs.
Example: $700,000 triplex = $7,000-$10,500/year in maintenance Plus: $1,500-$3,000 per unit for turnover (painting, cleaning, minor repairs between tenants)
How to avoid it: Build a maintenance reserve from month one. Every month, set aside $500-$800 for inevitable repairs. When the furnace dies or the roof needs work, you'll be ready.
5. Not Getting Pre-Approved Before House Hunting
The mistake: Looking at properties first, then applying for financing.
The reality: Multi-unit pre-approvals take 30-45 days because lenders need to verify rental income assumptions, check comps, and assess your full financial picture. By the time you're approved, that perfect property is gone.
The impact: In hot markets, you're competing against pre-approved buyers who can move quickly. You lose deals or make desperate offers without financing conditions.
How to avoid it: Get pre-approved first, before you even start looking. Work with a broker who specializes in multi-units and can get you approvals with rental income assumptions already documented.
6. Buying in the Wrong Municipality
The mistake: Not researching local rental regulations before buying.
The reality: Some Ontario municipalities have:
Rental licensing requirements ($500-$2,000/year per unit)
Strict bylaws limiting number of unrelated tenants
Requirements for annual inspections
Restrictions on short-term rentals (Airbnb)
Cities like Hamilton, London, and Waterloo have complex rental licensing systems. Toronto has its own set of rules. Buying without knowing these can cost thousands annually or make your business model illegal.
How to avoid it: Before making offers, research:
Municipal rental licensing requirements
Tenant-landlord regulations specific to that city
Insurance costs (vary by municipality)
Property tax rates for multi-residential properties
7. Skipping the Inspection or Cutting Corners
The mistake: Using a regular home inspector or skipping inspection entirely to make offer more attractive.
The reality: Multi-unit inspections should be more thorough, not less. Each unit needs individual inspection, plus all common systems (roof, foundation, electrical, plumbing, HVAC).
The cost of skipping it: One of our clients skipped inspection to win a bidding war. After closing, discovered:
Electrical panel needed $12,000 upgrade
Roof had 2-3 years left ($25,000 replacement)
Plumbing had ongoing leaks ($8,000 repairs)
Total: $45,000 in immediate repairs they didn't budget for
How to avoid it: Budget $800-$1,200 for a thorough multi-unit inspection. Have the inspector check each unit separately, all mechanicals, and the overall building envelope. The $1,000 you spend could save you $50,000 in hidden problems.
Your Step-by-Step Action Plan: From Pre-Approval to Closing
Ready to move forward? Here's exactly how to navigate the process from start to finish.
Phase 1: Preparation (Before You Start Looking) – 4-6 Weeks
Step 1: Check and improve your credit score
Pull your credit report from Equifax and TransUnion
Dispute any errors (can take 30 days)
Pay down credit cards to below 30% utilization
Don't apply for new credit during this time
Step 2: Calculate your realistic budget
Use the 50% rental income rule as your baseline
Include all costs: down payment, closing costs, reserves, immediate repairs
Be honest about what you can actually afford monthly
Step 3: Save for all upfront costs
Down payment (5-20%)
Closing costs (1.5-4% of purchase price)
Inspection and appraisal fees ($1,000-$1,500)
Emergency reserve fund ($5,000-$10,000)
Step 4: Gather your financial documents
Last 2 years of tax returns (T1 Generals)
Last 3 months of pay stubs
Last 90 days of bank statements
Letter of employment
List of assets and liabilities
Phase 2: Pre-Approval (Start Here) – 1-2 Weeks
Step 5: Meet with a mortgage broker who specializes in multi-units
Don't go directly to your bank first—brokers have access to multiple lenders
Ask specifically about their experience with duplex/triplex/fourplex financing
Discuss rental income assumptions for different lenders
Step 6: Get pre-approved with rental income documented
Provide all your documents upfront
Get pre-approval letter showing maximum purchase price
Have broker document which lender is using what rental income percentage
Ask about rate holds (90-130 days is ideal)
Step 7: Understand your real buying power
Know your maximum WITH rental income counted
Know what you'd qualify for WITHOUT rental income (for comparison)
Understand the gap and how rental income bridges it
Step 8: Get your pre-approval letter
This shows sellers and real estate agents you're a serious buyer
Makes your offers stronger
Speeds up final approval when you find a property
Phase 3: Property Search (Active Hunting) – 2-8 Weeks
Step 9: Work with an agent familiar with multi-units
Not all agents understand multi-unit properties
Look for agents who've sold duplexes/triplexes/fourplexes in your target area
They should understand rental market rates and property valuations
Step 10: Verify units are legal BEFORE making offers
Call the municipality planning department for every property you're serious about
Ask: "How many legal dwelling units are registered at this address?"
Check zoning permissions
Verify any required rental licenses are in place
Step 11: Review existing leases if property has tenants
Request copies of all current leases
Check rent amounts (are they at market rate?)
Review lease terms (when do they expire?)
Ask about tenant history (any issues? payment problems?)
Calculate if current rents support your numbers
Step 12: Run the actual numbers for each property
Purchase price + closing costs = total investment
Monthly mortgage payment + taxes + insurance + maintenance = expenses
Rental income (use 50% to be conservative) = revenue
Does it cash flow positive or negative?
What's your real monthly out-of-pocket cost?
Phase 4: Offer to Close (The Critical Period) – 30-60 Days
Step 13: Make your offer with proper conditions
Financing condition: 45-60 days minimum (not 30—multi-units take longer)
Inspection condition: 7-10 days
Status certificate (if condo-style units): 10 days
Consider adding: Verification of rental income, confirmation of legal units
Step 14: Schedule your multi-unit property inspection
Book as soon as offer is accepted
Budget $800-$1,200 for thorough inspection
Ensure inspector checks each unit individually plus all common systems
Attend the inspection yourself—ask questions
Step 15: Submit formal mortgage application
Provide all updated documents
Include copies of leases (if property has tenants)
Property details and purchase agreement
Inspection report (lender will want to see this)
Step 16: Lender orders appraisal
Cost: $300-$500 (you pay this)
Appraiser confirms property value
For vacant units: Appraiser provides market rent assessment
This market rent assessment is what lender uses for income calculation
Appraisal takes 1-2 weeks typically
Step 17: Final mortgage approval and rate lock
Once appraisal is complete and satisfactory, you get final approval
Lock in your interest rate
Review all mortgage terms carefully
Ask questions about anything unclear
Step 18: Lawyer, title insurance, and closing
Hire a real estate lawyer experienced with multi-unit properties
They review title, handle money transfers, register mortgage
Purchase title insurance ($150-$400)
Do final walk-through 24-48 hours before closing
Closing day: Keys are yours!
Timeline Summary
Total realistic timeline: 3-4 months minimum
Preparation phase: 4-6 weeks
Pre-approval phase: 1-2 weeks
Property search: 2-8 weeks (depends on market and your requirements)
Offer to closing: 6-8 weeks
Pro Tip: Start with pre-approval even if you're just exploring the idea. It's free, you're not committed to anything, and you'll know your real buying power with rental income factored in. This prevents wasting months looking at properties you can't actually afford.
Real-World Examples: Ontario Multi-Unit Buyers
Let me share three actual scenarios from clients we've helped in the past year. Names are changed, but numbers are real:
Example 1: First-Time Buyer House Hacking a Duplex in Hamilton
The buyer: Sarah, 29, government employee
The property: $640,000 side-by-side duplex in Hamilton's Kirkendall neighborhood
Financial situation:
Annual income: $74,000
Down payment: $35,000 saved (5.5%)
Credit score: 720
No other debts
The challenge: On her income alone, Sarah qualified for about $420,000—not enough for the duplex.
The solution:
One unit currently rented at $1,650/month
Monoline lender counted 80% of rent: $1,320/month added to income
New qualifying income: $6,166 + $1,320 = $7,486/month
Result: Approved for $640,000 at 5.39%
The outcome: Sarah lives in one unit, collects $1,650/month from the tenant. Her mortgage payment is $3,200/month. After the tenant's contribution, she pays $1,550/month out of pocket—less than she was paying for a one-bedroom apartment.
Within two years, she plans to move out, rent both units, and use the rental income to qualify for another property. Her tenant is building her wealth.
Example 2: Growing Family Buying a Triplex in Ottawa
The buyers: Michael and Jennifer, married couple, two young kids
The property: $825,000 triplex in Ottawa's Centretown
Financial situation:
Combined income: $142,000/year
Down payment: $125,000 (15%)
Credit scores: 780 and 760
One car loan: $380/month
The challenge: With their debt and two kids, they were tight on debt service ratios even with good income.
The solution:
Two units rented at $1,950 each ($3,900 total/month)
Big bank counted 50% of rent: $1,950/month added
They live in the third (largest) unit
New qualifying income: $11,833 + $1,950 = $13,783/month
Result: Approved with TD Bank at 5.14% (excellent rate due to strong credit and relationship)
The outcome: Michael and Jennifer have a beautiful 3-bedroom unit for their family. The two rental units generate $3,900/month, covering about 65% of their mortgage payment. They have more space than they could afford in a single-family home, and they're building equity in a larger asset.
When their kids are older and they want more space, they can move out, rent all three units, and the property will be cash-flow positive to support their next purchase.
Example 3: Investor Buying Non-Owner-Occupied Fourplex in Mississauga
The buyer: David, 42, small business owner
The property: $1,150,000 fourplex in Mississauga near Square One
Financial situation:
Business income: $110,000/year (2-year average from tax returns)
Down payment: $250,000 (22%—more than minimum 20%)
Credit score: 695
Already owns primary residence (mortgage-free)
Wants this as pure investment
The challenge: Self-employed income documentation, plus non-owner-occupied means stricter qualifying.
The solution:
All four units rented: $2,000, $2,100, $2,200, $2,200 = $8,500/month total
Monoline lender counted 80%: $6,800/month rental income
Required 1.25 debt coverage ratio for investment property
Result: Approved at 5.79% (slightly higher rate for non-owner-occupied)
The outcome: David's fourplex generates $8,500/month in rent. His mortgage payment is $5,200/month. After property taxes ($650/month), insurance ($180/month), and setting aside $850/month for maintenance and vacancies, he has positive cash flow of about $1,620/month.
More importantly, his tenants are paying down the mortgage. In 25 years, this $1.15M asset will be paid off through rental income, and he'll have a property generating $100,000+/year in rental income—a significant part of his retirement plan.
What These Examples Teach Us
Common thread: All three buyers would NOT have qualified without rental income being counted. That's the power of multi-unit financing.
Different strategies, same vehicle:
Sarah is house-hacking her way to future investments
Michael and Jennifer are raising their family with reduced housing costs
David is building long-term wealth through rental real estate
The math works: Even in expensive Ontario markets, multi-unit properties can make financial sense when structured properly with the right financing.
Ready to Finance Your Multi-Unit Property?
If you've made it this far, you're serious about multi-unit investing, and I respect that. Let me leave you with the key points that matter most:
First, multi-unit financing is fundamentally different from single-family home financing. Down payments vary based on whether you'll live there. Rental income calculations can make or break your application. And lender selection matters tremendously—the difference between 50% and 80% rental income counting is often the difference between qualifying and not qualifying.
Second, living in one unit while renting the others (house hacking) is the easiest path to multi-unit ownership. You get access to 5% down payment programs, better interest rates, and easier qualification. Your tenants help pay your mortgage while you build equity.
Third, don't go directly to your bank. Work with a mortgage broker who specializes in multi-unit properties and has access to multiple lenders with different rental income policies. This single decision could increase your buying power by $50,000-$100,000.
Finally, thousands of Ontarians are building wealth through duplex, triplex, and fourplex properties right now. The financing might seem complex at first, but with proper guidance and the right lender, it's absolutely achievable. Whether you're house-hacking your way to homeownership or building a rental property portfolio, multi-unit properties offer one of the most proven paths to financial freedom in Canadian real estate.
Not sure where you stand or how much you can qualify for?
Book a free 15-minute consultation with our multi-unit mortgage specialists. We'll review your specific situation, calculate exactly how much rental income will help you qualify, show you which lenders offer the best programs for your scenario, and map out your exact path to multi-unit property ownership.
Let's get you qualified and into your duplex, triplex, or fourplex in 2026.
This guide is for informational purposes and represents general mortgage financing information as of early 2026. Rates, programs, and lender policies can change. Always consult with a licensed mortgage professional for advice specific to your situation.
