GuidesPlex and multi-unit
Five units and up: CMHC or conventional
Two financing paths, two sets of terms and timelines.
The transaction date and time available
The down payment you have
The cost of the insurance premium
The insured path
Insurance allows longer amortization and a lower rate. Processing takes more time.
The conventional path
An uninsured loan is processed faster. The required down payment is higher.
How to choose
- The transaction date and time available
- The down payment you have
- The cost of the insurance premium
- How long you will hold the property
The cost of the premium
The insurance premium is added to the loan. You pay it over the full term.
On a property held long term, the lower rate often offsets that premium.
What the insurer requires on top
- An appraisal meeting its standards
- Two or three years of income history
- Sometimes a technical building inspection
- A vacancy rate in line with the local market
The extra delay
The insurer’s review adds three to six weeks. Build that into the purchase offer.
The five-unit threshold
Below five units, the property follows residential rules.
At five and above, it becomes an income property to the lender.
The down payment, the documents and the timelines all change.
