Duplex, Triplex & Fourplex Financing in Calgary

You want to become a real estate investor, but you do not have $100,000 saved for a 20% down payment on an investment property. You are earning good income, have strong credit, but limited cash reserves. How do you get started?

The answer for many Calgary investors is buying a multi-unit property (duplex, triplex, or fourplex) and living in one unit while renting out the others. This is called "house hacking," and it is one of the most powerful wealth-building strategies available to first-time investors.

By living in one unit, you qualify for owner-occupied financing — as little as 5% down instead of 20%. The rental income from the other units offsets your mortgage payment, allowing you to live for free or nearly free while building equity in a multi-unit building.

This guide covers everything you need to know about financing duplexes, triplexes, and fourplexes in Calgary.

What Qualifies as a Multi-Unit Property?

Duplex (2 Units)

A building with two separate dwelling units, each with its own entrance, kitchen, and bathroom. Can be side-by-side or stacked (up/down).

Example: Two-storey building with one unit on main floor, one unit on upper floor. Separate entrances, separate utilities.

Triplex (3 Units)

A building with three separate dwelling units.

Example: Three-unit building with one unit on each floor (basement, main, upper), or three side-by-side townhouse-style units.

Fourplex (4 Units)

A building with four separate dwelling units.

Example: Four-unit building arranged as two units on main floor, two units on upper floor. Or four side-by-side townhouse-style units.

What Does NOT Qualify

• Single-family home with basement suite: This is still classified as single-family for mortgage purposes, even if you rent the basement
• Buildings with 5+ units: These are classified as commercial properties and require commercial financing (different rules, higher down payments)

For mortgage purposes, the maximum is 4 units. Anything beyond that crosses into commercial real estate financing.

Owner-Occupied vs Investment: The Critical Difference

The financing rules for multi-unit properties depend entirely on whether you will live in one of the units.

Owner-Occupied Multi-Unit Financing

You live in one unit, rent the others.

Down payment requirements:

• 5% down on first $500,000 (if purchase price under $1M)
• 10% down on portion between $500,001 and $1,000,000
• Same as single-family owner-occupied

Mortgage insurance: Required (CMHC, Sagen, Canada Guaranty)

Interest rates: Prime rates (4.5% to 5.5%)

Rental income: Counted toward qualification (typically 50% to 80% of market rent)

Example:

• Duplex purchase price: $580,000
• Down payment: $33,000 (5% on first $500K + 10% on remaining $80K)
• You live in Unit A, rent Unit B for $1,500/month
• Lender counts $750 to $1,200/month rental income (depending on method)

This is the house-hacking strategy and how most investors get started.

Investment Multi-Unit Financing

You rent all units, do not live in any.

Down payment requirements:

• 20% minimum
• No mortgage insurance available

Interest rates: Slightly higher (4.7% to 5.6%)

Rental income: All units counted toward qualification

Example:

• Fourplex purchase price: $750,000
• Down payment: $150,000 (20%)
• All four units rented: $1,600/month each = $6,400 total
• Lender counts $3,200 to $5,120/month rental income (depending on method)

This is for experienced investors with sufficient capital and income.

The House-Hacking Strategy: Living for Free

House-hacking is living in one unit of a multi-unit property while renting out the other units. The rental income covers most or all of your housing costs.

Duplex House-Hacking Example

Property details:

• Purchase price: $550,000 (Calgary duplex)
• Down payment: $27,500 (5%)
• Mortgage: $522,500 at 5.0%
• Monthly payment (mortgage + taxes + insurance): $3,450

Unit breakdown:

• Unit A (you live here): 2-bedroom, market rent value $1,600/month
• Unit B (rented): 2-bedroom, rented for $1,600/month

Your housing costs:

• Total property cost: $3,450/month
• Rental income: $1,600/month
• Your net cost: $1,850/month

Compare to renting:

• If you rented a 2-bedroom apartment: $1,800 to $2,000/month
• House-hacking net cost: $1,850/month

Result: You live in a 2-bedroom unit for roughly the same cost as renting, but you are building equity, benefiting from appreciation, and taking tax deductions.

After 1 year, you can move out, rent both units ($3,200/month total), and buy another property using the same strategy.

Fourplex House-Hacking Example

Property details:

• Purchase price: $820,000 (Calgary fourplex)
• Down payment: $46,000 (5% on first $500K + 10% on remaining $320K)
• Mortgage: $774,000 at 5.0%
• Monthly payment (mortgage + taxes + insurance): $5,100

Unit breakdown:

• Unit A (you live here): 1-bedroom, market rent value $1,300/month
• Unit B, C, D (rented): $1,300/month each = $3,900/month total

Your housing costs:

• Total property cost: $5,100/month
• Rental income: $3,900/month
• Your net cost: $1,200/month

You are living in a 1-bedroom for $1,200/month while owning a $820,000 asset. After 2 years, you move out, rent all four units ($5,200/month total), and the property is fully cash-flow positive.

How Rental Income Is Counted (Owner-Occupied)

When you live in one unit and rent the others, lenders count the rental income toward your qualification.

The 50% Rule (Most Conservative)

Lender counts 50% of market rent from units you are renting out.

Example: Duplex

• You live in Unit A
• Unit B rents for $1,500/month
• Lender counts: $1,500 × 50% = $750/month

The 80% Rule (More Favorable)

Some lenders count 80% of market rent.

Example: Triplex

• You live in Unit A
• Unit B rents for $1,400/month
• Unit C rents for $1,400/month
• Total rent: $2,800/month
• Lender counts: $2,800 × 80% = $2,240/month

The difference between 50% and 80% rule can be $40,000 to $80,000 in purchasing power.

Market Rent Determination

Just like investment properties, lenders require an appraisal with a rental addendum showing market rent for each unit.

Appraiser provides:

• Unit A market rent: $1,500/month
• Unit B market rent: $1,500/month
• Unit C market rent: $1,400/month
• Unit D market rent: $1,400/month

These become the official numbers used for qualification, regardless of what you think you can rent for.

Down Payment and Mortgage Insurance

Owner-Occupied Down Payment Requirements

Under $500,000:

• Minimum: 5% down

$500,000 to $999,999:

• 5% down on first $500,000
• 10% down on amount above $500,000

$1,000,000+:

• 20% down (no insurance available for purchases $1M+)

Example calculations:

$480,000 duplex:

• Down payment: $24,000 (5%)

$620,000 triplex:

• Down payment: $37,000 ($25K on first $500K + $12K on remaining $120K)

$850,000 fourplex:

• Down payment: $60,000 ($25K + $35K)

Mortgage Insurance Premiums

When you put less than 20% down, you pay mortgage default insurance. The premium is based on your down payment percentage.

Example:

• Purchase price: $600,000
• Down payment: $35,000 (5.83%)
• Mortgage: $565,000
• Insurance premium: $565,000 × 4.0% = $22,600

This premium is added to your mortgage balance (you do not pay it in cash), making your total mortgage $587,600.

Qualification Requirements

To qualify for a multi-unit property, you need to meet standard mortgage qualification criteria.

Credit Score

Minimum: 600 to 680 (depending on lender) Ideal: 700+

Lower credit scores may qualify but expect higher rates or larger down payment requirements.

Income

You need sufficient income to qualify for the mortgage payment, even with rental income counted.

Qualification calculation:

• Total property cost: $4,200/month (mortgage, taxes, insurance, utilities)
• Rental income counted: $2,100/month (50% rule on $4,200 total rent)
• You need to qualify for $2,100/month from personal income

Debt Service Ratios

GDS (Gross Debt Service): Housing costs ≤ 39% of gross income TDS (Total Debt Service): All debts ≤ 44% of gross income

Rental income is added to your gross income for these calculations, improving your ratios.

Employment Stability

Employed: 2+ years in current job or industry preferred Self-employed: 2 years of tax returns required

Where to Find Multi-Unit Properties in Calgary

Neighborhoods With Multi-Unit Stock

Established inner-city:

• Kensington / Hillhurst (older character duplexes)
• Ramsay (older duplexes, some fourplexes)
• Inglewood (mixed multi-unit stock)
• Bridgeland (some newer duplexes and fourplexes)

Suburban communities:

• Forest Lawn (affordable duplexes and fourplexes)
• Dover (affordable multi-unit)
• Marlborough Park (some multi-unit)

Price ranges (2025):

• Duplex: $450,000 to $700,000
• Triplex: $600,000 to $900,000
• Fourplex: $750,000 to $1.2M

Finding listings:

• Realtor.ca (filter for "duplex", "triplex", "fourplex" or "multi-family")
• Work with a realtor who specializes in investment properties
• Drive neighborhoods and look for "For Sale" signs on multi-unit buildings

What to Look For

Strong rental demand:

• Near transit (C-Train stations)
• Near universities or hospitals (consistent tenant demand)
• Near employment centers (downtown, industrial parks)

Good unit mix:

• Similar-sized units (easier to manage, consistent rent)
• Separate entrances (tenants value privacy)
• Separate utilities (tenants pay their own, reduces your costs)

Property condition:

• Well-maintained building (roof, foundation, mechanicals)
• Recent updates (kitchens, bathrooms add value)
• Separate meters for utilities (gas, electricity, water)

Rent-to-price ratio:

• Total monthly rent ÷ purchase price = at least 0.6% (0.7%+ is strong)
• Example: $750,000 fourplex renting for $5,200/month total = 0.69% (good)

The 1% Rule and Multi-Unit Properties

The "1% rule" is an old real estate investing heuristic: monthly rent should be at least 1% of purchase price for strong cash flow.

Example:

• $500,000 property should rent for $5,000/month (1%)

In Calgary (2025), the 1% rule is difficult to achieve on well-located, quality properties. More realistic is 0.6% to 0.8%.

Calgary fourplex example:

• Purchase price: $850,000
• Total rent: $5,600/month
• Ratio: 0.66%

This is typical in Calgary. You do not hit 1%, but you get strong appreciation, and with house-hacking, your personal housing cost is near-zero or negative.

Scaling Beyond Your First Multi-Unit

Once you house-hack a duplex or fourplex for 12 to 24 months, you have options to scale.

Strategy 1: Move Out and Buy Another

Year 1: Buy duplex with 5% down, live in Unit A, rent Unit B Year 2: Move out, rent Unit A as well, property is now fully rented Year 2: Buy another duplex with 5% down (you are still a first-time buyer for owner-occupied purposes because you lived in the first property) Year 3: Move out of second duplex, rent both units Year 3: Buy triplex with 5% down

After 3 years, you own 7 rental units (2 duplexes + 1 triplex).

Strategy 2: Refinance and Use Equity

Year 1: Buy fourplex for $800,000, live in one unit Year 4: Property appreciates to $920,000, you have $180,000 equity Year 4: Refinance to 80% LTV ($736,000), pull out $100,000 Year 4: Use $100,000 as down payment on another property

Strategy 3: Convert to Refinance-to-Purchase Loop

Use the fourplex as collateral to pull equity and fund down payments on single-family rentals or additional multi-units. This is how investors scale to 10+ properties.

Tax Benefits of Multi-Unit Properties

When you own a multi-unit property, the units you rent out provide significant tax deductions.

What You Can Deduct (Rental Units Only)

• Mortgage interest (on the portion of the mortgage allocated to rental units)
• Property taxes (prorated to rental units)
• Insurance (prorated to rental units)
• Utilities (if you pay them)
• Repairs and maintenance
• Property management fees
• Advertising for tenants

If you live in one of the units, you can only deduct expenses proportional to the rental portion.

Example: Duplex

• You live in Unit A (50% of building)
• You rent Unit B (50% of building)
• You can deduct 50% of mortgage interest, taxes, insurance, etc.

Example: Fourplex

• You live in Unit A (25% of building)
• You rent Units B, C, D (75% of building)
• You can deduct 75% of expenses

Depreciation (CCA)

You can claim Capital Cost Allowance (depreciation) on the rental portion of the building. Most accountants recommend against this because it reduces your cost base and increases capital gains tax when you sell.

Discuss with your accountant whether CCA makes sense for your situation.

Pros and Cons of Multi-Unit Properties

Advantages

Lower barrier to entry: 5% down instead of 20% (if owner-occupied)

Cash flow positive faster: Multiple income streams offset mortgage payment

Economies of scale: One roof, one furnace, one property tax bill, but 2 to 4 rental incomes

Diversified income: If one unit is vacant, you still have income from the others

Live for free or nearly free: House-hacking dramatically reduces housing costs

Scalable: Once you own one, you can leverage equity to buy more

Disadvantages

Property management complexity: More tenants = more management (or hire a property manager for 8% to 10% of rent)

Tenant conflicts: Tenants in multi-unit buildings sometimes have disputes (noise, parking, shared spaces)

Financing limits: Most lenders cap at 4 to 6 rental properties before requiring portfolio lending

Resale market: Smaller buyer pool than single-family homes (most buyers want single-family, not multi-unit)

Maintenance costs: Older multi-units can have deferred maintenance (roof, foundation, plumbing issues)

Real Calgary Example: Duplex House-Hack to Portfolio

Profile:

• Investor: Mike, 29, electrician, income $88,000/year
• Starting point: Renting 1-bedroom apartment for $1,600/month, saved $30,000

Year 1 (2022):

• Purchased duplex in Forest Lawn: $465,000
• Down payment: $23,250 (5%)
• Moved into Unit A (2-bedroom)
• Rented Unit B: $1,500/month
• Net housing cost: $1,200/month (less than he was paying in rent)

Year 3 (2024):

• Moved out of duplex, rented Unit A: $1,650/month
• Total rental income: $3,150/month
• Mortgage payment + costs: $3,000/month
• Cash flow: +$150/month

Year 3 (2024):

• Purchased triplex in Marlborough: $620,000
• Down payment: $37,000 (saved + small HELOC on duplex)
• Moved into Unit A (1-bedroom)
• Rented Units B and C: $1,400/month each = $2,800 total
• Net housing cost: $900/month

Year 5 (2026, current):

• Duplex value: $520,000 (appreciated)
• Triplex value: $680,000 (appreciated)
• Total portfolio: $1.2M
• Total equity: $280,000
• Total rental income (duplex fully rented): $5,950/month
• Living in triplex Unit A for $900/month

Next step: Move out of triplex in 2027, rent all units, use equity to buy fourplex with 20% down (no longer eligible for 5% down after 2 owner-occupied purchases).

Mike went from renting a 1-bedroom apartment to owning 5 rental units in 5 years using house-hacking.

Final Thoughts

Multi-unit property financing — especially house-hacking — is the most accessible path to real estate investing for Calgary buyers with limited capital. By living in one unit and renting the others, you qualify for owner-occupied financing (5% down), dramatically reduce your housing costs, and start building wealth through rental income and appreciation.

Calgary has a strong rental market, reasonable multi-unit pricing compared to Toronto or Vancouver, and no land transfer tax, making it an excellent city for house-hacking.

If you are earning good income, have decent credit, and want to become a real estate investor but do not have $100,000 saved for a 20% down payment, a duplex or fourplex with 5% down is your path forward.

For more investment property strategies, see the Complete Guide to Investment Property Financing in Calgary.

Questions about multi-unit financing or house-hacking strategies? Contact Jay: jaysinghmortgage@gmail.com or 403.409.1126.