The 4-Unit Threshold
In Canada, properties with 1-4 units are classified as residential and can be financed with standard residential mortgage programs. Properties with 5+ units are classified as commercial and require commercial underwriting. This distinction has a massive impact on your down payment, rates, and qualification criteria.
For a fourplex or smaller, you can put as little as 5% down (owner-occupied) or 20% down (investment). For a 5-unit building, expect 25-35% down and qualification based on the property’s income rather than your personal income.
How Rental Income Helps You Qualify
One of the biggest advantages of multiplex investing is that lenders allow you to use rental income to offset your mortgage payments. For an owner-occupied property, most lenders will use 50% of the rental income from the other units. For investment properties, up to 80% of total rental income can be used for qualification.
This means a fourplex generating $6,000/month in total rent from three units could add $3,000-$4,800/month to your qualifying income, dramatically increasing the mortgage amount you qualify for.
Down Payment and Rate Guide
Here is a quick summary of what to expect when financing a multiplex in BC in 2026:
- Owner-Occupied Duplex: 5% down, rates from 4.49%, CMHC insurable.
- Investment Duplex/Triplex/Fourplex: 20% down, rates from 4.99%, use up to 80% of rental income.
- 5-19 Unit Apartment Building: 25% down, rates from 5.49%, DSCR-based qualification.
- 20+ Unit Building: 25-35% down, rates from 5.29%, CMHC MLI Select program available.
Why Multiplexes Are a Smart Strategy
Multiplexes offer diversified rental income (if one unit is vacant, you still have income from the others), potential for house-hacking (live in one unit, rent the rest), and value-add opportunities through renovations and rent increases. In BC’s expensive market, they are one of the most accessible paths to building a real estate portfolio.
Get Expert Help
E7 Mortgages specializes in multiplex and multi-family financing across the Lower Mainland and BC. We know which lenders offer the best terms for each property type and can help structure your deal for maximum approval. Call (778) 834-9618 or WhatsApp us.