Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

How does financing a multi-family home in Lakeview work?

Financing a multi-family home in Lakeview runs through the same CMHC framework as anywhere else in Saskatoon, weighing gross debt service near 39 percent and total debt service near 44 percent of income, with the minimum down payment set at 5 percent to $500,000 then 10 percent above that on an insured mortgage.

That framework does not change because the property has more than one unit, but the lender's underwriting does: rental income from additional legal units can offset some of the qualifying debt load, provided each unit is permitted, since the City of Saskatoon will not recognize an unpermitted suite's income and neither will most lenders.

Lakeview itself is a southeast, established neighbourhood built out through the 1970s and 1980s around larger family homes, so most of its multi-family stock is a secondary suite added to an existing house rather than a purpose-built small apartment building, which shapes what a lender will actually finance.

If the property is tenanted, existing leases carry over under the Residential Tenancies Act, 2006, and a lawyer should review them before closing regardless of how the financing is structured. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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