Call or write. Tell us which building it is, the price or the loan balance, and your deadline. You don't need any documents yet.
Multi-unit financing: what does it take to buy a 6-plex?
With a CMHC-insured loan, a building with 5 or more units can be financed up to 85% of the value CMHC sets. On a $2M building, that brings the down payment to about $300,000. We take your building to several lenders and compare what they offer. We work in Québec and Ontario.
Mortgage broker since 2020 · AMF licence 237729 · MA Mortgage Architects inc.
When to call us
- Your offer is accepted and the deadline on your financing condition is running.
- You are buying your first building with 5 or more units.
- Your term is ending and your bank has sent its renewal offer.
- You want to take equity out of one building to buy another.
- You renovated, rents went up, and the building is worth more than when you bought it.
For a purchase, have the price, the financing-condition date and the rent roll handy. For a refinance, the current loan balance, its maturity date and how much you want to take out.
CMHC-insured loans and MLI Select
CMHC is the only insurer of loans on buildings with 5 or more units in Canada. An insured loan goes through an approved lender and, according to CMHC, gets a preferred interest rate.
MLI Select gives points for three commitments: renting some units at an affordable rent for 10 years, cutting the building's energy use, or making it accessible. You need at least 50 points. For an existing building, with 50 points financing stays at 85%; 70 points allow 95% over 45 years; 100 points, 95% over 50 years.
An insured loan carries a premium, paid once and added to the loan. For a purchase financed at 85%, the base premium is 5.35% of the loan, about $91,000 on a $1.7M loan. It drops to 2.60% if you borrow 65% or less. MLI Select cuts the premium by 10%, 20% or 30% depending on your points.
A conventional loan, without insurance, has no premium. We compare both with your building's numbers.
| CMHC-insured | MLI Select (CMHC) | |
|---|---|---|
| Maximum financing | 85% of value | up to 95% |
| Maximum amortization | 40 years | 40, 45 or 50 years |
| Minimum debt coverage | 1.10 to 1.30 | 1.10 |
What the lender looks at
The building's income. The lender starts from the rents, takes off vacancy and bad debt, then operating expenses. That gives net operating income.
The debt coverage ratio. Net operating income divided by the year's mortgage payments. A building netting $120,000 that pays $100,000 a year has a ratio of 1.20. Below 1.0, the rents no longer cover the loan. For an insured loan, the minimum is 1.10 to buy a 5- or 6-unit building, 1.20 to refinance, and 1.20 to 1.30 from 7 units depending on the length of the term.
You. CMHC asks for 5 years of experience managing similar buildings, or a professional property manager under contract. Your net worth must be at least 25% of the loan, with a $100,000 minimum.
Cash you need at purchase, on top of the down payment. Property transfer duties (the welcome tax): in Montréal, about $39,800 on a $2M building under the City's 2026 rates, paid in one payment within 30 days.
Let's have a discovery call.
We look at what you have, even if the file is incomplete. We tell you what's missing.
You gather the documents on the list below.
We build the file from the building's actual financial statements and present it to lenders whose criteria fit the project.
We follow the application until the loan is funded.
How long it takes depends mostly on the lender, the appraisal and CMHC insurance if there is any. Give us your financing-condition date on the first call.
What's needed.
Rent roll, leases, financial statements for the last two years, tax and insurance bills.
For an insured loan, CMHC also asks for: the signed purchase agreement, proof of where the down payment comes from, an appraisal, 3 years of operating statements, the last 12 months of bills, your personal net worth statement and your latest tax return.
Your questions about multi-unit financing
How much down payment do I need for a multi-unit building?
With a CMHC-insured loan, at least 15% of the value CMHC sets; with MLI Select, from 5% if the building earns 70 points or more. The CMHC premium is added to the loan.
Can I call before I have every document?
Yes. We look at what you have. The application goes to a lender once the file is complete.
Is there a minimum loan amount?
No. There's no minimum loan.
Does the stress test apply?
OSFI's minimum qualifying rate covers residential loans on 1 to 4 units. For 5 units and more, the lender looks mainly at the debt coverage ratio.
How do I check Ronald's licence?
Search for Ronald Daigle in the AMF register, or call 1 877 525-0337. His licence number is 237729.
What do our services cost?
We explain how we are paid before we start.
Related financing
Let's talk about your project.
Where it is, how many units, and what you want to do: buy, refinance or build. We call or email you back. You can also call us yourself, any day from 8 a.m. to 10 p.m.