Mortgage financing for apartment buildings and residential properties with 5+ units
Classified as commercial mortgages in Canada
Underwritten using Net Operating Income (NOI) and Debt Service Coverage Ratio (DSCR)
Conventional and CMHC-insured options available
Citadel Mortgages structures financing for purchase, refinance, equity take-out, and expansion
Multi-unit residential properties with five or more self-contained units are treated as commercial real estate by Canadian lenders.
Unlike residential mortgages, approval is based primarily on:
Property income and expenses
Net Operating Income (NOI)
Debt Service Coverage Ratio (DSCR)
Market rents and vacancy assumptions
At Citadel Mortgages, we help investors, developers, and owners secure multi-unit financing that aligns with cash flow, scale, and long-term portfolio growth.
A multi-unit residential mortgage is used to finance income-producing residential properties with 5+ units, including:
Apartment buildings
Purpose-built rental properties
Walk-up and low-rise apartments
Mid-rise residential buildings
Residential investment portfolios
These mortgages are commonly used for:
Property purchases
Refinancing existing buildings
Equity take-out for reinvestment
Portfolio consolidation
💡 Once a property reaches 5 units, it is no longer considered residential for lending purposes.
💡 CMHC programs, including MLI Select, are accessed through multi-unit financing, not separately.
| Program Type | Purpose | Key Highlights |
|---|---|---|
| Conventional Commercial | Stabilized buildings | Faster approvals, flexible terms |
| CMHC-Insured Financing | Long-term rental holds | Lower rates, longer amortizations |
| CMHC MLI Select | Energy-efficient or affordable housing | Rate discounts & incentives |
| Alternative / Private Lending | Transitional or repositioning | Short-term, higher flexibility |
🏦 CMHC programs are accessed THROUGH multi-unit financing — not instead of it.
Property Type: 18-unit apartment building
Purchase Price: $6,000,000
Gross Rental Income: $540,000
Net Operating Income (NOI): $390,000
Citadel Mortgages:
Reviews rent roll and operating statements
Calculates DSCR under lender guidelines
Compares CMHC-insured vs conventional options
➡️ Result: Long-term financing secured with competitive rates and scalable refinance potential.
Apartment buildings (5+ units)
Purpose-built rentals
Affordable housing projects
Seniors’ residential buildings (non-care)
Residential investment portfolios
💡 Mixed-use buildings are assessed separately and may fall under Mixed-Use Mortgage programs.
Income & Expense Review — Rent roll, T12, vacancy analysis
Appraisal & Market Review — Market rents and valuation
Financing Strategy — Conventional vs CMHC vs MLI Select
Lender & Insurer Approval — Commitment issued
Legal & Funding — Closing and long-term structuring
Citadel Mortgages manages lender positioning early to avoid rate changes or leverage reductions late in the process.
Rent roll
T12 operating statement
Property tax bill
Insurance binder
Appraisal report
Environmental Phase I
Capital expenditure summary
CMHC application documentation
💡 Clean financials = better rates and higher leverage.
Please see our document checklist page for any questions related to documents needed.
| Risk | Description |
|---|---|
| 📉 Vacancy Risk | Impacts NOI and DSCR |
| 🏚️ Deferred Maintenance | Can reduce valuation |
| 🏦 Interest Rate Exposure | Especially for variable loans |
| 🔁 Refinance Risk | CMHC rules can change |
| 📋 Documentation Risk | Incomplete financials delay approvals |
Multi-unit lending rewards stable income and professional management.
“Multi-unit mortgage success comes down to income quality and long-term stability. Strong NOI and conservative underwriting open the door to the best financing options.”
— Citadel Mortgages Commercial Lending Team
Once it has 5 or more residential units
Typically 20–40%, depending on financing type and risk.
Yes — subject to eligibility and underwriting requirements.
Debt Service Coverage Ratio — a measure of income vs mortgage payments.
Usually 4–8 weeks, depending on complexity.
🏦 Access to national commercial lenders
🧠 Expertise in NOI & DSCR underwriting
📋 CMHC & MLI Select experience
🔁 Portfolio and refinance strategy planning
🤝 Clear, conservative lender positioning
Citadel Mortgages’ deep lender relationships and extensive experience in multi-unit financing are why so many clients choose to work with us. We understand how lenders underwrite duplexes, triplexes, fourplexes, and larger residential properties—and we know how to structure your file for approval.
Whether you’re purchasing or refinancing, let Citadel Mortgages help you secure the right financing with confidence.