Investments

Multi-unit and multifamily investments

From duplexes to mid-size apartment buildings, and the conversion of single homes into several rental units. The number of units decides which rules, taxes and financing apply, so it is the first thing we work out with you.

Why multi-unit

Four thresholds that change the numbers

4 units

Outside the foreign buyer ban

The federal ban covers buildings with up to three homes. A non-Canadian can buy four or more today.

5 units

CMHC-insured financing begins

MLI Select insures loans on rental buildings of five or more units, with up to 95% financing and amortization of up to 50 years for projects that qualify.

7 units

No non-resident purchase tax

Ontario’s 25% Non-Resident Speculation Tax stops at six units. Rental apartment buildings with more are outside it.

100%

GST/HST rebate on new rental

New purpose-built rental buildings with four or more self-contained units can recover all of the GST and Ontario HST.

Unit count

What applies at each size

UnitsFederal foreign buyer banOntario Non-Resident Speculation TaxCMHC MLI Select100% rebate on new rental construction
1 to 3Applies in cities and larger towns until it ends or is replacedApplies, 25%Not eligibleNot eligible
4Does not applyApplies, 25%Not eligibleEligible if every unit is self-contained
5 to 6Does not applyApplies, 25%EligibleEligible
7 or moreDoes not applyDoes not apply to rental apartment buildingsEligibleEligible

The speculation tax applies to foreign nationals, foreign-controlled corporations and certain trusts. Inside the City of Toronto a further 10% municipal tax applies to foreign buyers of residential property. Every program in this table has conditions beyond unit count.

Routes

Three ways into multi-unit property

Buy an existing building

Income from the first day. We underwrite the rent roll, operating costs, building condition and comparable sales, and flag what a lender will ask about before you offer.

Convert a house into several units

Planning rules now allow three to six homes on many residential lots. The return depends on the lot, the layout and the construction budget, so feasibility comes before the purchase.

Build new purpose-built rental

An infill multiplex or small apartment building. New rental construction can qualify for the full GST/HST rebate, and new units are exempt from Ontario’s rent increase guideline.

Conversions

Turning one home into several

Ontario and Toronto have rewritten their zoning rules to permit more homes on an ordinary residential lot.

  • Across Ontario: up to three units on most serviced urban residential lots without a rezoning, since November 2022. The added units are exempt from development charges and parkland fees.
  • Toronto, citywide: up to four units on a residential lot, since May 2023.
  • Toronto and East York, and Ward 23 in Scarborough: up to six units, since June 2025.
  • Garden and laneway suites: permitted across Toronto in addition to the units in the main building.
  • Development charges: Toronto has waived them on multiplexes of up to six units.

Zoning sets the ceiling. The lot decides the result. Lot size, setbacks, height limits, servicing, fire separations and exits determine how many units actually fit. Check the specific address with the municipality and a designer before you buy.

What we check before you buy a conversion candidate

  1. Zoning and permitted unit count

    What the by-law allows at that address, and whether a garden or laneway suite is possible.

  2. Layout and feasibility

    Farhad Ayatollahi, a partner on our team, holds a Master of Architecture and has 25 years of experience designing and developing properties. Feasibility is assessed in-house before you commit.

  3. Budget and timeline

    Construction cost, permit timing and carrying costs, set against the rents the finished units can achieve.

  4. Financing and tax

    How a lender will value the finished building, whether CMHC insurance is available at five units or more, and whether the work counts as a substantial renovation for HST. Your accountant confirms the tax position.

Questions

What investors ask us

Yes, at four units or more, which is outside the federal ban. Ontario’s 25% Non-Resident Speculation Tax still applies to buildings of up to six units, and does not apply to rental apartment buildings with more than six. Buying through a company does not avoid these rules: a corporation controlled by foreign nationals is treated as a foreign buyer.

It depends on the lender, the building and your residency. CMHC-insured loans on buildings of five or more units can reach high loan-to-value ratios for qualifying projects. Conventional commercial loans require more equity, and non-resident borrowers are usually asked for a larger down payment. We introduce you to mortgage brokers who place these loans before you make an offer.

We do not quote expected returns. For a specific building we show you the rent roll, operating costs, financing terms and comparable sales, and you decide with your advisers.

Annual increases for a sitting tenant are capped by a provincial guideline in most units: 2.1% for 2026 and 1.9% for 2027. Units first occupied as homes after November 15, 2018 are exempt from the guideline. In every unit, the rent is set freely when a new tenancy begins.

Yes. A non-resident landlord needs a Canadian agent to handle tax withholding on the rent, and most appoint a property manager to do that along with leasing and maintenance. Our non-resident buyer guide explains how the tax works.

The Greater Toronto Area and southern Ontario, including Toronto, Mississauga, Vaughan, Richmond Hill, Oakville, Burlington, Hamilton, Oshawa and London.

Investor consultation

Tell us the kind of building you have in mind

Size, location, budget and whether you want income now or a project. We will tell you what is realistic and what it takes to buy it from where you are.

  • A 30-minute call by video, phone or WhatsApp, in your time zone
  • A straight answer on what you can buy today and what it costs
  • No obligation. We use your details only to respond to you

Prefer to message? WhatsApp 647-462-2928 or email sales@ayatrealty.com.

Sources and notes

Last reviewed: October 12, 2026. Rules, rates and deadlines change, and several items on this page are awaiting federal or provincial decisions. This page is general information, not legal, tax or financial advice. Confirm your own position with a Canadian real estate lawyer and accountant before you commit. Ayat Realty Group, Best Sellers Realty Inc. Brokerage.

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