Plexes & multi-unit properties

Will you live in one of the units?

Buying a plex to live in is often the ideal gateway to real estate investing. It’s also a popular option among first-time buyers.

• A smaller down payment. When you live in one of the units, you can access insured mortgage programs that require a smaller down payment than a fully rental building.
• Rents help you qualify. Rental income from the other units is taken into account when calculating your borrowing capacity.
• Attractive terms. Rates for an owner-occupied building are generally comparable to those for a single-family home.

Planning to house a family member in one of the units? Tell us from the start: this situation can affect how the lender analyzes your application.

A fully rental building

If you don’t live in the building, it’s a rental investment. The criteria are then different:

• a larger down payment is generally required;
• lenders look closely at the building’s profitability and your experience as a landlord;
• how rental income is calculated varies a lot from one lender to another, which can change your borrowing capacity considerably.

That’s exactly where a broker makes the difference: we know which lenders best handle rental income and your real estate portfolio.

What affects your financing

Several factors directly affect your access to financing:

• The building’s characteristics. How many units are there? Are they rented or vacant? Is the building move-in ready, or does it need renovations?
• Rents and leases. Current rents, lease terms and the potential for increases are analyzed by the lender.
• The building’s expenses. Taxes, insurance, heating, maintenance and management fees are factored into the analysis.
• Intended use. Do you plan to live in one of the units, rent it to a relative or dedicate it entirely to rental?
• Financial structure. Would you like to include a home equity line of credit for your renovations or future purchases?

Documents to prepare

To prepare your mortgage application, we’ll ask you for, among other things:

• current leases;
• municipal and school tax bills;
• a statement of the building’s income and expenses;
• your usual personal documents (proof of income, down payment).

Looking at a 5+ unit, commercial or industrial building?

You’re in the right place. Financing for buildings with 5 or more units is possible, as is financing for commercial and industrial buildings, and we can support you in your project. These buildings are financed under different criteria than plexes. Get in touch with us to discuss it.

Contact us