DeedWorthGuide · QuebecDown Payment for a Plex in Canada: The 2026 Rules by Property Type
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In brief — What sets your down payment is not just the price — it is whether you live in one of the units. As an owner-occupant, a duplex can be financed with as little as 5% down, a triplex or fourplex with 10%. As a pure rental (you do not live in the building), it is 20% minimum — high-ratio mortgage insurance is not available.
The down payment is the first hurdle to a first plex. The good news: the 20% rule is not universal. Living in a unit changes everything, because it unlocks mortgage insurance (CMHC, Sagen, Canada Guaranty) that lets you go much lower. Here are the 2026 rules, type by type.
The dividing line: occupied or not
- You live in at least one unit (principal residence) → mortgage insurance available, lower down payment.
- You live in none (pure rental) → 20% minimum, no high-ratio insurance.
This is the most important distinction in financing a plex, and the one many first-time buyers learn too late.
Minimum down payment by type (owner-occupied)
| Type | Units | Minimum down payment |
|---|---|---|
| Duplex | 2 | 5% on the first $500,000, 10% on the portion above |
| Triplex | 3 | 10% |
| Fourplex | 4 | 10% |
| 5 units and up | 5+ | Multi-unit financing — see MLI Select |
Example. An owner-occupied duplex at $600,000: 5% × $500,000 + 10% × $100,000 = $35,000 (about 5.8%). The same building as a triplex: 10% = $60,000. As a pure rental, whatever the type: 20% = $120,000. The gap is huge.
Mortgage insurance and its cap
As soon as the down payment is below 20% (a high-ratio loan), mortgage insurance is mandatory. The premium is a percentage of the loan based on the loan-to-value ratio, then added to the borrowed principal — you finance it over the amortization (in Quebec, the QST on the premium is payable at closing and cannot be financed).
High-ratio financing is only available under a price cap: $1,500,000 since December 15, 2024. Above it, 20% down is required.
What not to forget around the down payment
- Closing costs are not financed. The welcome tax, notary, inspection and insurance add to the down payment — keep the cash aside.
- An FHSA can fund the down payment. Deductible going in, tax-free coming out: see using your FHSA to buy a plex.
- Qualification depends on rental income. Part of the rent from the leased units counts toward your borrowing capacity.
Model your project
DeedWorth models a plex as an owner-occupant: down payment by type, insurance premium, cash flow and after-tax return of the rented units. Analyze a plex with DeedWorth →
FAQ
What down payment for a triplex in 2026? As an owner-occupant, 10% minimum. As a pure rental (living in no unit), 20% minimum, because high-ratio mortgage insurance is not available.
Can you buy a duplex with 5% down? Yes, as an owner-occupant: 5% on the first $500,000 of the price, then 10% on the portion above, up to the $1,500,000 cap.
Why does a rental property require 20%? Because high-ratio mortgage insurance targets owner-occupancy. Without occupancy it is not offered, hence the 20% minimum.
Is the insurance premium financed? Yes, it is added to the borrowed principal and amortized. In Quebec, the QST on the premium is payable at closing and cannot be financed.
Read more
- Buying a first plex in Quebec
- Duplex, triplex or fourplex: which to choose?
- Using your FHSA to buy a plex
For information only, not advice or a confirmation of eligibility. Mortgage-insurance rules change; confirm your project with a lender or mortgage broker. Last verified: July 2026.