Lenders approve the building along with the borrower. Its type, condition and use decide which lenders can take the file, sometimes before your income is even looked at.
What they’ll want to see
Four leases, the rents actually collected, and the state of each unit. At four you’re on the residential boundary. One unit more and the file goes commercial, with other rules and other lenders.
See the whole budget
The payment is only part of it. Municipal and school taxes, insurance, heating and upkeep all add up, and many lenders want a reserve left in your account after closing.
Documents to gather
What the lender will ask for.
What the building is for
Building type and unit count
Appraisal and comparables
Leases and rents
Down payment or equity
Eligible lenders
Frequently asked
Why does four units matter and not five?+
Up to four units the building is still financed as residential. From five it’s commercial: the decision rests on the building’s income rather than your personal income, the down payment goes up and the list of lenders gets shorter.
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 current leases and records of rent actually collected. If they’re ready before you make an offer, a short financing window is realistic.
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.
