Solutions · Equity & investment
Financing built for the next property, not just this one.
Montréal is a city of plexes, and investors here have more options than most realize — and more ways to get stuck. The first property is easy to finance. The third or fourth is where structure, lender choice and sequencing decide whether your portfolio keeps growing.
Reviewed by Stan Rashev, mortgage & real estate broker · Updated
The short answer
Financing a Montréal plex depends on how many units it has and whether you live in it. Owner-occupied 2-unit properties can be bought with 5% down and 3-4 unit properties with 10% down using mortgage insurance; pure rentals typically need 20%. Lenders count rent differently, which changes how much you can borrow for the next property. Best Mortgage Montreal chooses lenders and purchase order around the portfolio you want in five years.
01 Sounds like you?
This is for you if…
Lenders don't all read rental income the same way. Some add half the rent to your income; others offset most of it against the property's costs. The method chosen can change your borrowing power dramatically.
Talk it through- 01You're buying your first duplex, triplex or rental condo.
- 02You own several properties and lenders are getting harder.
- 03You want to pull equity from one property to buy the next.
- 04Your rental income isn't being counted the way you expected.
- 05You're looking at a five-unit-plus building.
03 Structures we'll compare
There's always more than one way to do it.
We'll put at least two or three of these side by side for your situation — with the real cost, the trade-offs and the fine print of each.
04 In depth
What to know before you decide.
Investing in a multi-unit property is a significant decision, and expert advice is essential for securing favourable terms and planning for successful debt management. Financing a portfolio is a different discipline from financing a home — the lender, the order of purchases and the way rent is counted all shape what you can buy next.
Ask us about your situationWhat makes Montréal plexes different
Many Montréal plexes come with long-standing tenants, and rent increases are regulated by the Tribunal administratif du logement. Lenders therefore underwrite the leases in place, not the rents you hope to achieve, and they look closely at the rent roll, the building's condition and its heating and electrical systems. Arriving with signed leases, recent tax bills and an honest picture of upcoming repairs speeds up approval and avoids surprises at appraisal.
How rental income is counted
Lenders treat rent in one of two broad ways. With the add-back method, a portion of the rent is added to your income before ratios are calculated. With the offset method, most of the rent is subtracted from the property's own costs. The same building can look very different under each approach — and so can your borrowing capacity for the next property. Choosing a lender whose method suits your portfolio is often worth more than a small difference in rate.
Building the portfolio in the right order
Each purchase changes how lenders see the next one. Owner-occupied plexes can be bought with as little as 5% or 10% down with mortgage insurance, while pure rentals need 20%. Pulling equity from an existing property, staggering renewal dates and spreading properties across lenders all affect what comes next. Before you sign an offer, we look at how this deal fits the portfolio you want to own in five years, not just whether this one can be approved.
05 Costs, timing & pitfalls
What it costs, how long it takes — and what to avoid.
Down payments and costs on Montréal plexes
On an owner-occupied duplex, mortgage insurance allows as little as 5% down on the first $500,000 and 10% above it; triplexes and fourplexes you live in need at least 10% down. Non-owner-occupied rentals need 20% or more. Budget separately for the welcome tax, notary fees, inspection, and a reserve for vacancies and repairs. Buildings of five or more units are financed as commercial multi-residential properties, valued mainly on their rental income.
How long a plex purchase takes
From accepted offer to closing, most plex purchases take 45 to 60 days. The lender will want the leases, a rent roll, recent tax bills and an appraisal; insured or multi-unit files can add an extra week for the insurer's review. Getting a pre-approval that already accounts for the rental income — not just your salary — avoids discovering at the conditional stage that the building qualifies for less than expected.
Mistakes investors make
Buying with the lender that offers the lowest rate rather than the one whose rental-income method supports your next purchase. Underestimating the regulated rent environment and buying on projected rents rather than the leases in place. Putting every property with the same lender until you hit its exposure limit. And refinancing to pull equity without stress-testing the cash flow at a higher renewal rate. A portfolio plan prevents all four.
Questions to ask before you sign
Before you sign an offer on a plex, ask: does the building carry itself at today's leases and a higher renewal rate, how will this lender count the rent, and how does this purchase affect my next one? A property that cash-flows but blocks your next approval may cost more than it earns. We answer all three questions before your financing condition expires.
06 An illustration
What it can look like, in numbers.
An investor buying an $850,000 Villeray triplex with 20% down, $5,200 a month in rent and about $1,150 a month in taxes, insurance and upkeep.
The deal
- Price
- $850,000
- Down payment
- 20% · $170,000
- Gross rent
- $5,200/mo
- Vacancy + operating costs
- $1,306/mo
- Net operating income
- $3,894/mo
The financing
- Rate · amortization
- 4.79% · 30 yrs
- Mortgage payment
- $3,544/mo
- Cap rate
- 5.50%
- Cash to close (incl. welcome tax)
- $190,849
- Monthly cash flow
- $350
07 Run your own numbers
Investment Property Calculator
Model a plex or rental: monthly cash flow, cash needed to close (including Montréal welcome tax), cap rate, cash-on-cash return and debt-service coverage. Open full page
Where the rent goes per month
08 Good to know
Questions people ask before they call.
Can't find yours? Stan answers the phone himself more often than you'd expect.
(514) 994-1030Toll-free 1 855 777-1711 · by appointment in Saint-LaurentHow much do I need to put down on a plex?
If you'll live in it: 5% for a duplex and 10% for a triplex or fourplex, with mortgage insurance. As a pure rental: 20%.
Does the rent count toward qualifying?
Yes, but lenders count it differently — some add a portion of the rent to your income, others offset most of it against the property's costs. The method chosen can change your borrowing power a great deal.
Can I get a 30-year amortization on a rental?
Often, yes, on conventional financing with 20% or more down. It materially improves monthly cash flow.
What changes at five units?
Five-plus-unit buildings are financed as commercial properties, with underwriting focused on the building's income. CMHC multi-unit programs can offer longer amortizations in some cases.
Related guides
Read more before you decide.
How to Finance a Plex in Montréal: Duplex, Triplex and Fourplex Mortgages (2026 Guide)
How to finance a duplex, triplex or fourplex in Montreal: down payments of 5%, 10% or 20%, how rent is counted, CMHC insurance, welcome tax and a real example.
Read articleWelcome Tax in Montréal (2026): Rates, Examples and the New First-Home Refund
Montreal welcome tax 2026: official brackets, examples from $350,000 to $1.2 million, who pays, when it's due, and Quebec's new refund of up to $5,875.
Read article09 Often combined with
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About the reviewer
Stan Rashev · Founder, mortgage & real estate broker
Stan Rashev has helped Montréal families, investors and business owners structure mortgages for 22 years. He works with more than 30 lenders, holds a master's degree in engineering, and serves clients in English, French, Russian and Bulgarian.
- Canada's Top 75 Mortgage Brokers, 2023
- #1 broker at Dominion Lending Centres Centre-West Montréal, three years running
- Top 5 broker at First National, Québec & Atlantic
- Desjardins Excellence Gala, 2025
Full profile LinkedIn How we review content
Mortgage brokerage in Québec is regulated by the Autorité des marchés financiers (AMF). You can check any broker's right to practise with the AMF. This page gives general information, not personalized financial advice; rules and rates change, and your options depend on your full file.
10 Start here
Request a confidential mortgage review.
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