Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
For buyers who will live in one unit, often yes. An owner-occupied duplex needs as little as 5% of the first $500,000 and 10% of the rest down, and up to 100% of the other unit’s rent can help you qualify; triplexes need 10%. As a pure investment with 20% down, cash flow is hard. Legal units are essential.
This guide is for GTA buyers weighing a duplex or triplex in 2027, whether you want to live in one unit and rent the others or buy purely as an investment. You will get the 2027 zoning picture across the GTA, the exact down payment and rental income rules, worked monthly numbers, what happens to existing tenants, and who this kind of property really suits.
Should you buy a duplex or triplex in the GTA in 2027?
For many buyers who will live in one of the units, yes. A two- or three-unit home lets you buy with as little as 5% or 10% down, count rent from the other units when you qualify, and have tenants cover a large share of the mortgage. As a pure investment with 20% down, the numbers are much harder, just as they are for investment condos.
The deciding factor is almost never the price. It is whether the extra units are legal, whether the existing tenants fit your plans, and whether you are prepared to be a landlord who lives upstairs or downstairs from your tenants.
How many units can you have on a GTA lot in 2027?
More than most people think. Ontario’s Planning Act stops any municipality’s official plan from prohibiting, on a parcel of urban residential land:
- three units inside a detached house, semi-detached house or rowhouse; or
- two units in the house plus one unit in a separate building on the lot, such as a garden suite.
The Act also bars official plans from requiring more than one parking space for each of those extra units, or setting a minimum unit size. Many GTA cities go further:
- Toronto permits multiplexes of up to four units city-wide, and up to six units in the Toronto and East York district and Ward 23.
- Mississauga council approved fourplexes as of right in December 2023, allowing buildings up to three storeys, including a partially above-grade basement unit.
Permission to have units is not the same as a unit being legal. Each unit still needs a building permit, zoning compliance and fire separations. Before you buy, confirm what was permitted for the specific house, not just what the street allows. My guide to buying a house with a basement apartment lists the documents to ask for.
How much down payment do you need for a duplex or triplex?
It depends on how many units the property has and whether you will live in one of them. These are CMHC’s rules for insured homeowner loans as of November 2026.
| Property | You live in one unit | You do not live there |
|---|---|---|
| Duplex (2 units) | 5% of the first $500,000 and 10% of the rest (up to 95% loan-to-value) | At least 20% in practice; a conventional mortgage |
| Triplex or fourplex (3–4 units) | 10% (up to 90% loan-to-value) | At least 20% in practice; a conventional mortgage |
| Price limit for insured loans | Below $1,500,000 | Not applicable |
| Five units or more | Commercial multi-unit financing | Commercial multi-unit financing |
Source: CMHC, Homeowner and Small Rental Mortgage Loan Insurance (Purchase); CMHC Rental Income guidance. Mortgage insurance premiums apply on insured loans: 4.00% of the loan at 90.01–95% loan-to-value and 3.10% at 85.01–90%.
Insured mortgages on these homes are limited to a 25-year amortization unless you qualify for 30 years as a first-time buyer or buyer of a newly built home. For five units or more, see my guide to CMHC MLI Select financing for small multiplexes.
How much rental income counts toward your mortgage?
More for a duplex than a triplex. CMHC’s rental income guidance for owner-occupied properties with an insured loan says:
- Two units: up to 100% of the gross rent from the other unit can be added to your income.
- Three or four units: either up to 50% of the gross rent, or a net rental income approach that subtracts expenses first.
The stress test still applies: you qualify at the higher of 5.25% or your contract rate plus two points. On a non-owner-occupied purchase, each lender sets its own method, so get it in writing during pre-approval. My guide to buying a duplex or triplex in Toronto covers how lenders and appraisers look at legal and non-conforming units.
What does a duplex or triplex cost to own each month in 2027?
Here are two worked examples for an owner who lives in one unit. The prices and rents are illustrations I chose, not market data: no major report publishes average rents for basement or duplex units, so check recent leases for the exact street before relying on any rent figure.
| Item | Duplex, owner-occupied | Triplex, owner-occupied |
|---|---|---|
| Purchase price (illustration) | $1,000,000 | $1,300,000 |
| Minimum down payment | $75,000 | $130,000 |
| Mortgage insurance premium added to the loan | $37,000 (4.00%) | $36,270 (3.10%) |
| Total mortgage | $962,000 | $1,206,270 |
| Monthly payment (4.44%, 25 years) | $5,292 | $6,636 |
| Rent from other units (assumed $2,000 each) | $2,000 | $4,000 |
| Your net mortgage cost after rent | $3,292 | $2,636 |
Source: my calculations using CMHC minimum down payments and premiums, Canadian semi-annual compounding and the lowest insured five-year fixed rate of 4.44% reported by Ratehub on 10 November 2026. Property tax, insurance, utilities, maintenance and vacancy are not included.
Add property tax, insurance, utilities you pay for the tenants, maintenance and a vacancy allowance on top. Even so, compare the duplex figure with renting: the average two-bedroom condo in the City of Toronto leased for $3,154 a month in Q2 2026, according to TRREB. A well-bought duplex can put an owner in a house for a monthly cost not far from renting a two-bedroom apartment, while building equity.
Budget for closing costs beyond the down payment, including land transfer tax, legal fees and any tax your lawyer says is payable on the mortgage insurance premium. Ask your lawyer for the exact figure before you firm up.
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What do houses cost in areas where duplexes are common?
TRREB data does not separate duplexes and triplexes from other detached and semi-detached homes, so the best guide is the detached median in the area. Treat these as reference points, not duplex prices.
| Area | Detached median, Jan–Oct 2026 | Change vs Jan–Oct 2025 | Average days on market, 2026 |
|---|---|---|---|
| Toronto W02 (west end) | $1,637,500 | −1.1% | 14 |
| Toronto E03 (East York area) | $1,195,000 | −0.4% | 24 |
| Toronto W04 (York) | $995,000 | −7.1% | 29 |
| Toronto E04 (Scarborough) | $870,000 | −8.9% | 24 |
| Mississauga | $1,225,000 | −5.8% | 31 |
| Brampton | $950,000 | −8.9% | 30 |
| Oshawa | $730,000 | −8.8% | 25 |
Source: TRREB MLS data via REALM, January–October 2026 vs the same period of 2025; median sold prices for all detached homes, municipal and TRREB district level only.
Notice that many central Toronto districts sit above the $1.5 million limit for insured mortgages. In those areas, a buyer usually needs 20% down even when living in one unit, which changes the maths. Lower-priced districts and cities leave more room under the cap.
What happens to the tenants when you buy a duplex or triplex?
They stay, on their existing leases and at their existing rents, unless the tenancy is properly ended. If you want a unit for yourself or a close family member, the Residential Tenancies Act allows the seller to give the tenant notice on your behalf, but only if the building has no more than three residential units. The notice must give at least 60 days and end on the last day of a rental period or a fixed term, and the seller must pay the tenant one month’s rent or offer another acceptable unit. The tenant can still dispute it at the Landlord and Tenant Board.
For tenants who stay, rent control usually applies to older units. Ontario’s guideline for 2027 is 1.9%. Units first occupied for residential purposes after 15 November 2018 are exempt from the guideline, so a newly created legal unit may give you more flexibility on future increases than an original one.
The purchaser’s own-use notice does not work for a fourplex or larger, because the Act limits it to buildings with three or fewer units. If you plan to move into a four-unit building, buy one with a vacant unit or a tenant who has agreed in writing to leave. Never firm up a deal based on a promise that a tenant “will be gone by closing” without the paperwork your lawyer approves.
Can you add a unit after you buy?
Often, and the financing now exists to do it. CMHC Refinance for secondary suites lets an owner borrow up to 90% of the as-improved value to build a self-contained suite, for properties of up to four units with an as-improved value below $2 million and up to a 30-year amortization. The money must go into the suite, and the unit cannot be rented for less than 90 consecutive days.
Conversion costs vary a lot with the house, the basement height and whether you need new fire separations, a second exit or a bigger electrical service. My guides to converting a house to a triplex in Toronto and to what a fourplex costs to build or buy walk through the budget.
Who should buy a duplex or triplex in 2027?
It suits buyers who will live on site for several years, are handy or happy to manage repairs, and want help carrying a mortgage. It also suits families who want separate space for parents or adult children. It suits people less well if they want a quiet, hands-off investment, need to sell in a year or two, or would struggle if a unit sat empty for a few months.
When clients ask me about a duplex, I ask them to price it two ways: as a legal multi-unit home, and as a single-family house if the extra unit turned out to be unpermitted. If the deal still makes sense in the second scenario, the risk is manageable. In 2027, with buyers holding negotiating power and homes taking longer to sell than in 2024, I would take the time to confirm permits, fire separations and the tenants’ status before firming up, rather than racing a deadline.
What to do next
- Get a pre-approval that states the rental income method and the maximum price for an owner-occupied two- or three-unit home.
- Shortlist areas where detached prices sit under the $1.5 million insured limit if you plan to put less than 20% down.
- For each property, ask for building permits, final inspections and any fire inspection for the extra units.
- Get copies of every lease, the current rents and the tenants’ payment history before you firm up.
- If you need a unit vacant, confirm the building has three or fewer units and plan the notice timing with your lawyer.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
Is buying a duplex a good idea in 2027?
For buyers who will live in one unit, a duplex can be a good idea in 2027. CMHC allows as little as 5% of the first $500,000 and 10% of the rest as a down payment on an owner-occupied two-unit home, and up to 100% of the other unit’s gross rent can count toward qualifying. As a pure investment with 20% down, monthly cash flow is much harder.
How much down payment do I need for a duplex in Ontario?
If you will live in one unit, the minimum is 5% of the first $500,000 and 10% of the remainder, with an insured mortgage and a price below $1.5 million. For a triplex or fourplex you live in, the minimum is 10%. If you will not live in the property, plan on at least 20% down with a conventional mortgage.
Can I buy a triplex with 5% down in Canada?
No. CMHC’s rules allow 5% down only on one- and two-unit owner-occupied homes. Three- and four-unit homes need at least 10% down even if you live in one unit, and the purchase price must be below $1.5 million for an insured mortgage. Above that price, or if you will not live there, plan on at least 20% down.
Does rental income help you qualify for a duplex mortgage?
Yes. Under CMHC’s guidance for insured, owner-occupied properties, up to 100% of the gross rent from the second unit of a duplex can be added to your income. For three or four units, lenders use either up to 50% of gross rents or a net rental income approach. The stress test still applies, at the higher of 5.25% or your rate plus two points.
Can I build a fourplex in Toronto in 2027?
Yes, Toronto permits multiplexes of up to four units city-wide, subject to zoning rules and a building permit, and up to six units in the Toronto and East York district and Ward 23. Mississauga also allows fourplexes as of right. Across Ontario, the Planning Act prevents municipalities from banning up to three units on most urban residential lots.
Can I evict a tenant after buying a duplex in Ontario?
Only through the Residential Tenancies Act. If the building has no more than three units and you or a close family member will live in the unit, the seller can give the tenant at least 60 days’ notice on your behalf and must pay one month’s rent in compensation. The tenant can dispute it at the Landlord and Tenant Board. This route does not apply to fourplexes.
Are duplexes rent controlled in Ontario?
Often, yes. Older units in a duplex are usually covered by Ontario’s rent increase guideline, which is 1.9% for 2027, with at least 12 months between increases and 90 days’ written notice. Units first occupied for residential purposes after 15 November 2018, including most new basement apartments first occupied after that date, are exempt from the guideline.
Is a duplex better than a condo for investment in the GTA?
Often, if you will live in it. An owner-occupied duplex can be bought with 5% to 10% down and rental income helps you qualify, while an investment condo needs at least 20% down and usually loses money each month in 2027. A duplex brings more maintenance and landlord work, and must have legal units to hold its value.
Can I refinance to add a basement unit in Ontario?
Yes. CMHC Refinance for secondary suites lets homeowners borrow up to 90% of the as-improved value to build a self-contained suite, for properties of up to four units valued below $2 million after the work, with up to a 30-year amortization. The money must fund the suite, and the unit cannot be rented for periods shorter than 90 days.
Sources
- CMHC — Purchase: homeowner and small rental mortgage loan insurance
- CMHC — Rental income
- CMHC — Refinance for building secondary suites
- Planning Act, R.S.O. 1990, c. P.13 (Ontario e-Laws), s. 16(3)
- City of Mississauga — Fourplexes approved for Mississauga neighbourhoods (7 Dec 2023)
- Residential Tenancies Act, 2006 (Ontario e-Laws), ss. 49 and 49.1
- TRREB — Rental Market Report, Q2 2026
- Ratehub — Best 5-year fixed mortgage rates in Canada
Related reading
- Biggest Condo Developers in Toronto: Track Records Buyers Should Check
- Is It a Good Idea to Buy a Condo in Toronto in 2027?
- Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
- Can You Buy a House With No Down Payment in Ontario?
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.
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