This case study highlights how an investor can navigate the multi-unit property mortgage process and leverage government programs to secure financing for multi-unit residential properties in Ontario.

Step-by-Step Guide to Securing a Mortgage for Multi-Unit Properties

1. Understand Your Financing Needs

Down Payment Requirements:
For residential properties (up to 4 units): Minimum 20% down payment.
For commercial properties (5+ units): Minimum 25%-35% down payment.
Loan Type: Choose between a residential mortgage or a commercial mortgage based on property size.

2. Get Pre-Approved for a Mortgage

Prepare Financial Documents:
Proof of income (T4 slips, NOAs, or business income statements).
Credit report (minimum credit score of 680 recommended).
Debt-to-Income Ratio (ensure it’s within 35%-42% for favorable terms).
Lender Options:
Traditional Lenders: Major banks, credit unions, or private lenders.
Specialized Lenders: Institutions that focus on multi-unit properties, such as First National or CMHC-approved lenders.
Pre-Approval Benefits:
Establish a budget.
Strengthen negotiating power with sellers.

Explore Government Programs for Support

The Canadian government offers several programs to assist with multi-unit property purchases, especially those that support affordable housing.

Canada Mortgage and Housing Corporation (CMHC) Multi-Unit Mortgage Loan Insurance

Key Benefits:
Enables buyers to access mortgages with lower interest rates.
Requires as little as 15% down payment for multi-unit residential properties (5+ units).

Eligibility Requirements:
At least 20% of units must have rents below market levels.
Meets CMHC’s energy efficiency standards.

Process:
Work with a CMHC-approved lender to include insurance in your loan application.

National Housing Co-Investment Fund

Who It’s For: Investors developing or purchasing affordable rental housing.

Benefits:
Low-interest loans covering up to 95% of project costs.
Flexible repayment terms (up to 50 years).

Eligibility:
Property must meet affordability, accessibility, and energy efficiency targets.

Ontario Affordable Housing Programs

Some municipalities offer grants or tax incentives for investors creating affordable rental units.

Example: Toronto’s Open Door Program offers rebates on development charges.

Canada Greener Homes Grant (For Energy Efficiency)
Who It’s For: Investors improving the energy efficiency of multi-unit properties.

Benefits:
Up to $5,000 in grants for energy retrofits.
Supports CMHC’s Green Mortgage Insurance Program for lower premiums.

Contact Absolute Exposure today to explore personalized mortgage solutions tailored to your needs.

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📧 Email us: info@absoluteexposure.ca
🌐 Visit: https://absoluteexposure.ca