The gradual decline in mortgage interest rates in 2025 is encouraging buyers to look for profitable options to enter the housing market. Buying a multiplex as an owner-occupant is an attractive strategy: you live in one unit while the rents from the other units help you pay the mortgage. However, this type of purchase differs from buying a single-family home. Down payment, financing, or insurance—rules can change. Your Xperto broker will guide you to make the most of this opportunity in today’s market.
The Advantages of a Single-Family Home
Benefits of buying a single-family home:
- No neighbors in your yard
- A certain degree of independence
- More convenient for raising a family
- Total peace and quiet
It’s important to note that when you buy a single-family home, there is no capital gains tax upon resale, but you cannot deduct any expenses from your taxes unless you run a business from the property or declare a home office on your tax return.
The Advantages of Owning and Living in a Multiplex
Benefits of living in your rental property:
- Lower housing costs thanks to rental income that covers a large portion—or even all—of your mortgage payments.
- Tax-deductible expenses related to rental units. Note that the deductibility of these expenses is proportional to the share of the property occupied by tenants relative to the total living area. Examples of deductible expenses include: mortgage interest payments, home insurance premiums, renovations in rental units, exterior or landscaping improvements, snow removal, and lawn or property maintenance costs, among others.
- Save time by maintaining both your residence and your rental property at once.
Additionally, nothing prevents you from refinancing later to tap into your equity and buy your dream home while continuing to benefit from the rental income of the multiplex—or even to purchase another multiplex.
Some drawbacks of living in your rental property:
- A slightly higher down payment requirement, though financing can often help cover it
- Sharing the building with tenants
- Upon resale, you may be required to pay capital gains tax on the rental portion only (learn more)
Financial Factors to Consider When Buying a Multiplex
A purely rental property can be a good investment—even a business opportunity. Buying your first multiplex or rental property is more than just an investment; it’s also like starting a business. Like any business, you’ll have clients (tenants), generate income, incur expenses, and deal with market fluctuations.
It is also important to consider the financial aspects:
- Acquisition costs
- Resale value
- Rental income potential
- Associated expenses (insurance, maintenance, etc.)
All these factors must be weighed carefully to ensure a positive outcome. In this context, the property’s location is especially important, as it strongly influences both resale value and rental income.
Tenant payment reliability: Be firm when it comes to rent collection, as this is the main source of income for your investment. Choosing tenants carefully with proper credit checks (and requiring guarantees when necessary) is essential.
Don’t forget that a multiplex, like any investment, requires ongoing maintenance if you want to maximize your return on investment and increase your equity in the medium to long term.
Financing Conditions for a Multiplex
- Financing a multiplex with 2 to 4 units is similar to financing a single-family home; the borrower is qualified based on personal income.
- Buyers of multiplexes generally qualify for a higher loan amount since banks also consider potential rental income.
- The minimum down payment required for buying a multiplex as an owner-occupant is usually higher (5% for a duplex, 10% for a triplex or fourplex).
In short, if you have an investor mindset, buying a 2–4 unit multiplex is an excellent option to diversify your income sources, hedge against inflation, and benefit from tax advantages. While it requires a slightly larger initial down payment, the long-term return on investment is well worth it.