At five units and up, the decision rests on the building’s net income rather than your personal income. Different rules, different lenders, longer analysis.
A lender approves the property as much as the borrower. The type of building, its condition and its use decide which lenders can take the file, sometimes before your income is even considered.
What the lender wants to see
The rent roll, the building’s financial statements and expenses that can be verified. From five units, the property’s performance carries the file. Your own income fades to the background.
Plan for costs beyond the payment
The mortgage payment is only part of the bill. Municipal and school taxes, insurance, heating and maintenance add up, and many lenders want a reserve left in your account after closing.
Documents to gather
What the lender will ask for.
Use of the property
Type of building
Appraisal and comparables
Income or leases
Down payment or equity
Eligible lenders
Frequently asked
What changes at five units?+
The file becomes commercial. The lender checks whether the building’s net income covers the payment with enough margin, asks for a larger down payment, and takes longer to review than for a residential file.
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Add the rent roll and the building’s financial statements. Have them ready before you make an offer, or a short financing window becomes unrealistic.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
