10/26/2026
Four units is a home loan. Five is a business.
Last week's post was the fourplex with 10% down. A few of you asked the next question: what if we went bigger?
Here's the line. Up to four units is still a residential mortgage. You qualify on your income plus part of the rent, and if you live in one of the units, an insured mortgage may need as little as 5% to 10% down.
At five units, the lender underwrites the building first. Its rents, its expenses, its condition. Your income still matters, but the building's own income carries most of the weight. That's commercial, multi-unit lending, and it's a different lane, not a locked door.
Here's the play most buyers never hear about.
1. Buy and build on private or construction money. It's short term and priced for speed, with fees. It's the bridge, not the destination.
2. Line up the CMHC take-out before you break ground. The program is CMHC's MLI Select, for rental buildings of five units or more that commit to affordability, energy efficiency or accessibility. A project needs at least 50 points. In my practice, that approval is arranged first, so the exit exists before the first construction draw.
3. On completion, refinance into MLI Select. On new construction that may be up to 95% of cost, with amortizations of up to 40, 45 or 50 years depending on the points. On an existing building it's up to 85% of value at 50 points and up to 95% at 70 or more. Longer amortization means a lower payment, which is how a building that wouldn't carry itself over 25 years sometimes does over 40.
What CMHC wants to see from you: a net worth of at least 25% of the loan, and at least $100,000. Five years of experience managing rentals, or a professional property manager on the building. And the building itself has to hold up: legal units, the leases and current rents, and an appraisal that supports the price. A unit that isn't legal may not count at all, and it can pull the value down.
One more thing worth knowing. This summer Ottawa consulted on letting private insurers cover five- to eight-unit buildings. That consultation closed on July 2, 2026, and nothing is in force yet. If it changes, I'll tell you here first.
Where do you start? Not with the listing. Send me the city, the unit count and your budget, and I'll tell you which lane it's in and what may be possible, whether that's a fourplex with 10% down or a six-unit build with its own income doing the work.
If this isn't you but you know the person with the six-plex plan, send it to them.
Comment INVEST and I'll message you. Or call / text 416-473-9598.
Illustration of a common structure, not a promise. Private and construction financing carry lender and broker fees; the APR is disclosed on every quote. Estimates only. OAC. Not every file qualifies. Program terms are CMHC's and may change.
Rick Sekhon, Mortgage Broker (M08009007) · Real Mortgage Associates Inc. · FSRA Lic. #10464 Call or text (416) 473-9598 or 905-306-7000 anytime.
