How much is the down payment for a duplex in Canada?

If you live in one unit (owner-occupied), the minimum is 5% on the first $500,000 and 10% on the portion between $500,000 and $1,500,000 — the same as any owner-occupied home. If you are buying the duplex purely as an investment (non-owner-occupied), the minimum is 20%. CMHC insurance is available for owner-occupied duplexes, triplexes, and fourplexes.

Can you get CMHC insurance on a triplex or fourplex?

Yes, as long as you live in one unit. CMHC insures owner-occupied properties up to 4 units with as little as 5% down (on up to $1,500,000 as of December 2024). The property must be 1–4 units and you must live in one unit as your primary residence. Non-owner-occupied multiplexes of any size require 20% down and do not qualify for CMHC insurance.

Is a duplex a good investment in Canada?

Yes. Duplexes and small multiplexes are widely considered the best beginner investment because of owner-occupied financing (5% down), multiple income streams, and the ability to live in one unit while tenants cover most of the mortgage. In many Canadian cities, a duplex generates enough rental income to reduce your housing costs to near zero or even cash flow positive.

How is rental income from a multiplex taxed?

If you live in one unit and rent the others, only the rental portion is taxable. You can deduct a proportionate share of expenses (mortgage interest, property tax, insurance, maintenance) based on the rental percentage. For a triplex where you occupy one unit and rent two, 66% of expenses are deductible against the rental income.

Buying a Multiplex in Canada: Duplexes, Triplexes, and Fourplexes as Investments (2026)

Small multiplexes — duplexes, triplexes, and fourplexes — are the most powerful wealth-building tool available to Canadian real estate investors. When you live in one unit (house hacking), you get owner-occupied financing with as little as 5% down, your tenants cover most or all of your mortgage, and you start building a rental portfolio from day one. This guide covers everything: financing rules, cash flow analysis, and how to evaluate a multiplex deal.

Multiplex Overview: 2–4 Units

Property Type	Units	Owner-Occupied Down Payment	Investment Down Payment	CMHC Insurable?
Duplex	2	5% (up to $500K) / 10% ($500K–$1.5M)	20%	Yes (owner-occupied)
Triplex	3	5% (up to $500K) / 10% ($500K–$1.5M)	20–25%	Yes (owner-occupied)
Fourplex	4	5% (up to $500K) / 10% ($500K–$1.5M)	25%	Yes (owner-occupied)
5+ units	5+	N/A — classified as commercial	25–35%	No — commercial mortgage required

Key rule: Properties with 1–4 units are classified as residential. Five or more units enter commercial mortgage territory with different rules, rates, and qualification criteria.

Why Owner-Occupied Multiplexes Are the Best Beginner Strategy

Advantage	Details
Lowest down payment	5% (vs 20% for investment property) — saves $60,000–$150,000 in upfront capital
Best mortgage rates	Owner-occupied rates are 0.25–0.5% lower than investment rates
Rental income helps qualify	Lenders add 50–100% of other-unit rental income to your qualifying income
Built-in cash flow	1–3 rental units generating income from day one
First-time buyer programs apply	FHSA, HBP, first-time buyer tax credits all work on owner-occupied multiplexes
On-site management	Live next to your tenants — easier to manage, no travel costs
Learn before scaling	Low-risk introduction to property management
Builds equity faster	Multiple rental incomes accelerate mortgage paydown

Down Payment Examples

Owner-Occupied (You Live in One Unit)

Purchase Price	Down Payment (5% up to $500K, 10% on $500K–$1.5M)	CMHC Premium (~4%)	Total Mortgage
$400,000	$20,000 (5%)	$15,200	$395,200
$600,000	$35,000	$22,600	$587,600
$800,000	$55,000	$29,800	$774,800
$1,000,000	$75,000	$37,000	$962,000
$1,200,000	$95,000	$44,200	$1,149,200

Non-Owner-Occupied Investment

Purchase Price	Down Payment (20%)	CMHC Premium	Total Mortgage
$400,000	$80,000	None	$320,000
$600,000	$120,000	None	$480,000
$800,000	$160,000	None	$640,000

The capital difference is massive — $20,000 vs $80,000 for the same $400,000 duplex.

Cash Flow Analysis: Owner-Occupied Duplex

Property Details

Item	Value
Purchase price	$500,000
Down payment (5%)	$25,000
CMHC premium (4%)	$19,000
Total mortgage	$494,000
Mortgage rate	4.5%, 25-year amortization
Location	Calgary, AB

Income and Expenses

Item	Monthly
Rental income (Unit 2)	$1,800
Vacancy reserve (5%)	–$90
Effective rental income	$1,710

Expense	Monthly
Mortgage payment	$2,726
Property tax	$350
Insurance	$200
Maintenance reserve (5% of total rent)	$90
Capex reserve (5% of total rent)	$90
Total expenses	$3,456

Result	Monthly
Total expenses	$3,456
Rental income (effective)	–$1,710
Your net housing cost	$1,746
Comparable rent for the same unit	~$1,800
Monthly savings vs renting	$54 + equity building

You live for less than a comparable rental, build equity through mortgage paydown (~$600/month in year 1), and benefit from any property appreciation — all with just $25,000 down.

Cash Flow Analysis: Owner-Occupied Triplex

Property Details

Item	Value
Purchase price	$700,000
Down payment (5% on $500K + 10% on $200K)	$45,000
CMHC premium	$26,200
Total mortgage	$681,200
Rate	4.5%, 25-year

Income and Expenses

Item	Monthly
Rent — Unit 2	$1,600
Rent — Unit 3	$1,500
Total gross rent	$3,100
Vacancy (5%)	–$155
Effective rental income	$2,945

Expense	Monthly
Mortgage payment	$3,758
Property tax	$500
Insurance	$280
Maintenance (5%)	$155
Capex (5%)	$155
Total expenses	$4,848

Result	Monthly
Total expenses	$4,848
Rental income	–$2,945
Your net housing cost	$1,903
Mortgage principal paydown (your benefit)	+$830/month

Two tenants cover 61% of all expenses. Your effective housing cost is $1,903/month for a unit in a triplex — while building $830/month in equity.

Cash Flow Analysis: Non-Owner-Occupied Fourplex

Property Details

Item	Value
Purchase price	$900,000
Down payment (25%)	$225,000
Mortgage	$675,000 at 4.75%, 25-year

Income

Unit	Monthly Rent
Unit 1 (2BR)	$1,500
Unit 2 (2BR)	$1,500
Unit 3 (1BR)	$1,200
Unit 4 (1BR)	$1,200
Gross monthly rent	$5,400
Vacancy (5%)	–$270
Effective gross income	$5,130

Expenses

Expense	Monthly
Mortgage payment	$3,856
Property tax	$650
Insurance	$350
Maintenance (5%)	$270
Capex (5%)	$270
Property management (8%)	$432
Miscellaneous	$50
Total expenses	$5,878

Result	Monthly	Annual
Net cash flow	–$748	–$8,976
Mortgage paydown	+$1,000	+$12,000
Appreciation (3%)	+$2,250	+$27,000
Tax savings	+$400	+$4,800
Total return	—	$34,824 on $225,000 = 15.5%

What to Look For in a Multiplex

Factor	What to Check
Legal status	Are all units legally registered? Check with the municipality. Illegal suites can be shut down
Separate utilities	Individually metered units let you pass utility costs to tenants — major cash flow impact
Separate entrances	Tenants strongly prefer their own entrance; easier to manage; required in many bylaws
Parking	At least one spot per unit in most markets; street parking only reduces tenant quality
Unit condition	Each unit should be rentable without major renovation (for your first deal)
Current rents vs market	If current rents are below market, there’s upside when tenants turn over
Zoning	Verify the property is zoned for the number of units (R-2 for duplex, R-3 for triplex, etc.)
Roof, furnace, hot water, electrical	Big-ticket items — inspect thoroughly. One roof + one furnace for 4 units is cheaper than separate systems
Lot size and configuration	Is there room for a laneway suite or garden suite addition in the future?
Neighbourhood trajectory	Employment, transit, infrastructure investment, population trends

Insurance for Multiplexes

Coverage	Details
Owner-occupied duplex	Standard homeowner policy with landlord endorsement for rented unit(s)
Non-owner-occupied multiplex	Landlord / rental property policy (different from homeowner)
Tenant insurance	Require all tenants to carry tenant insurance (protects their belongings and adds liability coverage)
Liability limits	$2M minimum recommended for rental properties
Sewer backup, flood, earthquake	Add riders as needed for your area
Loss of rental income	Covers lost rent if a unit becomes uninhabitable due to covered damage

Tax Treatment of Owner-Occupied Multiplex

Tax Aspect	Treatment
Rental income	Taxable at your marginal rate
Expense deduction	Proportionate share (based on rental square footage ÷ total square footage)
Example: you live in 1 of 3 units (equal size)	66.7% of expenses deductible against rental income
Deductible expenses	Mortgage interest, property tax, insurance, maintenance, utilities (if landlord pays), advertising, management fees
CCA (depreciation)	Available on the rental portion but triggers recapture on sale — most accountants advise against
Principal residence exemption	Applies to your unit only; capital gains tax applies to the rental portion when you sell
Capital gains on sale	Rental portion is subject to capital gains (50% inclusion rate; 66.7% on gains over $250K/year)

Tax Example: Owner-Occupied Triplex (You Live in Unit 1)

Expense	Annual Total	Rental Portion (66.7%)	Deductible
Mortgage interest	$28,000	$18,676	$18,676
Property tax	$6,000	$4,002	$4,002
Insurance	$3,360	$2,241	$2,241
Maintenance	$3,000	$2,001	$2,001
Total deductible	—	—	$26,920
Rental income	—	$37,200	—
Net rental income	—	—	$10,280
Tax owed (at 30%)	—	—	$3,084

Without the deductions, you’d pay tax on $37,200 in rental income ($11,160 at 30%). The deductions save $8,076 per year.

Multiplex Financing Tips

Tip	Details
Use a mortgage broker	Broker access to multiple lenders = better rate and more flexible rental income calculation
Get an appraisal that reflects income	Income approach may yield higher appraised value for multiplexes
Keep clean records	Lenders want to see existing lease agreements, rental history, and expense records (especially for resale multiplexes)
Be prepared for longer approval	Multiplex mortgages require more documentation than single-family
Consider CMHC MLI Select	For larger multiplexes (5+ units), CMHC MLI Select offers premium reductions for energy-efficient and affordable housing
Plan your exit	Know whether you’ll continue house hacking, move out and convert to full rental, or sell — each has different tax and financing implications

Where to Find Multiplexes

Source	Details
Realtor.ca	Filter by “Multi-family” or “Duplex/Triplex”
MLS through your agent	Access to multiplexes before they hit public portals
For Sale By Owner (FSBO) sites	Kijiji, Facebook Marketplace, DuProprio (Quebec)
Driving for dollars	Many multiplexes sell off-market; look for tired properties in good locations
Wholesalers	Off-market deals at discounted prices (verify numbers independently)
Estate sales	Often priced to sell quickly
Word of mouth	Tell everyone you know you’re looking — many multiplex owners are aging and ready to sell

Buying a Multiplex in Canada: Duplexes, Triplexes, and Fourplexes as Investments (2026)

Multiplex Overview: 2–4 Units

Why Owner-Occupied Multiplexes Are the Best Beginner Strategy

Down Payment Examples

Owner-Occupied (You Live in One Unit)

Non-Owner-Occupied Investment

Cash Flow Analysis: Owner-Occupied Duplex

Property Details

Income and Expenses

Cash Flow Analysis: Owner-Occupied Triplex

Property Details

Income and Expenses

Cash Flow Analysis: Non-Owner-Occupied Fourplex

Property Details

Income

Expenses

What to Look For in a Multiplex

Insurance for Multiplexes

Tax Treatment of Owner-Occupied Multiplex

Tax Example: Owner-Occupied Triplex (You Live in Unit 1)

Multiplex Financing Tips

Where to Find Multiplexes

Related Resources