Multifamily Mortgage Rates Ontario 2026

Most multifamily mortgages are fixed-rate. Lenders generally fund them through longer-term capital markets such as bonds rather than overnight borrowing, so pricing follows Government of Canada bond yields more closely than the prime rate. That is why multifamily rates can move differently from prime for months at a time.

Spreads vary by program, property and lender. CMHC-insured loans generally carry the narrowest spreads, conventional lenders sit in the middle, and private lenders price highest to reflect risk. Your broker can show you how spreads compare across lenders for your file.

It can be. The premium is added to the loan and amortized, and CMHC-insured financing can offer higher leverage, longer amortization and tighter pricing than conventional. We compare total cost, including the premium, for your property before recommending a program.

A stronger DSCR can improve your pricing and the amount a lender will advance. To strengthen it before you apply, bring rents to market where possible, fill vacancies and review operating expenses.

MLI Standard finances stabilized rental properties with 5 or more units, up to 85% LTV and up to 40 years of amortization for existing buildings, or up to 50 years for new construction. MLI Select is points-based: 50 points allows up to 85% LTV and 40 years, 70 points up to 95% LTV and 45 years, and 100 points up to 50 years, with a minimum DSCR of 1.10. Points come from affordability, energy efficiency and accessibility commitments, and the premium discount grows with points.

Yes, this is a common value-add strategy. You can acquire a building that is not yet stabilized with private bridge financing, improve it and stabilize occupancy, then refinance into CMHC-insured or conventional financing where the property qualifies. Bridge financing is short term, so enter with a clear exit plan.

Timing depends on the lender and the program. A rate hold generally becomes available at different points in the process, typically once the lender or CMHC has issued a commitment, and it varies by lender, program and file. We confirm when a hold is available on your file.

Lenders typically ask for a current rent roll with lease terms, 2 to 3 years of property financials and tax returns, a rent arrears report, a Phase 1 environmental report, a recent appraisal, a personal financial statement, a real estate experience summary and capital expenditure documentation. Requirements vary by lender, program and file.

CMHC MLI Standard and MLI Select are for rental properties with 5 or more residential units. Smaller properties with 2 to 4 units are generally financed through other programs, and we can review the options that fit your building.

Many investors choose a 5-year term, which is common and often prices lower. 7 to 10 year terms add payment certainty and usually cost more. Match your term to your hold period and business plan.