Most bad investment purchases look fine on the listing. They fall apart once you subtract the expenses the listing left out.

This page is what I walk investors through before we look at a single building: how financing changes as the number of units goes up, the New Brunswick rules that catch people off guard, and the math that tells you whether a deal actually works. Whether you're looking at a house with a basement suite or a 12-unit walk-up in Moncton, Dieppe or Riverview, the order of operations is the same. Numbers first. Building second.

Everything here is general information as of October 2026, not financial, tax, legal or immigration advice. Lending rules vary by lender and change often. Several New Brunswick rules below are under active review.

Answer These Five Questions Before We Look at Anything

• Will you live in one of the units? This single answer can dramatically change your minimum down payment and financing options.
• How much cash do you actually have? Down payment, closing costs and reserves. Not just the down payment.
• Are you looking at 1 to 4 units, or 5 or more? Different lenders, different rules, different paperwork.
• Will you manage it yourself? Fine either way, as long as the numbers assume you won't.
• What is your citizenship, immigration and Canadian tax-residency status? It can affect what you can buy, which financing options are available, and how rental income or a future sale may be taxed.

Why Four Units Is the Line That Changes Everything

Up to four units, the bank is mostly lending to you. At five, it's mostly lending to the building.

1 to 4 units: residential lending

• The lender asks whether you can afford it: your income, credit and debt ratios, plus part of the rent.
• 5% to 10% down if you live in one unit. 20% or more if you don't.
• CMHC homeowner insurance or CMHC Income Property.
• Your first call: a residential mortgage broker or a bank mortgage specialist. Start with the mortgage calculator if you want a rough payment.

5 or more units: commercial lending

• The lender asks whether the building can carry the mortgage: net operating income, debt coverage and condition, plus your net worth and experience.
• Down payment is set by the lender or CMHC program and the debt coverage test, not a fixed percentage.
• Depending on the lender, property and loan size, expect some combination of a commercial appraisal, environmental review, building condition assessment, rent roll, leases and historical operating statements.
• Your first call: a commercial mortgage broker or a commercial banker.

How Much Down Payment Do You Need for a Duplex, Triplex or Fourplex?

If you live in one of the units

Owner-occupied 1 to 2 unit properties can qualify for insured financing with as little as 5% down on the first $500,000 of lending value and 10% on the remainder. Owner-occupied 3 to 4 unit properties need at least 10% down. The maximum insured purchase price or lending value is currently under $1.5 million (CMHC). Amortization is generally 25 years, with up to 30 years for eligible borrowers or properties under qualifying insured programs. Your own income does most of the heavy lifting, and the lender gives you credit for part of the rent.

If you don't live there

Plan on 20% down at minimum. CMHC Income Property currently insures non-owner-occupied 2 to 4 unit properties up to 80% loan-to-value, with a purchase price or lending value below $1 million and a maximum 25-year amortization (CMHC Income Property). Conventional lenders set their own limits, and plenty of them want more than 20%.

How lenders count the rent

Lenders either add a percentage of the rent to your income or subtract it from the cost of the mortgage. Which method, and how much of the rent counts, varies by lender and insurer. That's why two lenders can look at the same person and the same building and give you very different approvals. A broker who does rentals regularly is worth the phone call.

Financing an Apartment Building in Greater Moncton

What commercial lenders look at

• Net operating income (NOI): what the building earns after expenses, before the mortgage.
• Debt service coverage (DSCR): NOI divided by the annual mortgage payments. CMHC generally uses a minimum of 1.10 for standard rental housing. Conventional lenders set their own.
• Property documentation: depending on the lender, property and loan size, this may include a commercial appraisal, environmental review, building condition report, rent roll, leases and historical operating statements.
• You: net worth, cash on hand after closing, and your track record owning rentals.

CMHC MLI Select, in plain language

MLI Select is CMHC's points-based insurance for 5+ unit rental buildings. You earn points by committing to affordability, energy efficiency or accessibility. The more points, the better the terms. For existing buildings, CMHC currently lists 50 points at up to 85% loan-to-value and a 40-year amortization, 70 points at up to 95% and 45 years, and 100 points at up to 50 years (CMHC MLI Select).

The trade-off: affordability commitments can run 10 years or longer and put ongoing affordability requirements on the designated units, so they need to be factored into both future income and resale. It's a powerful program and an easy one to oversimplify, so model it with a commercial broker who has actually placed CMHC files.

Who does what

• Residential mortgage broker: shops many lenders. Best for 1 to 4 units, newcomers, and complicated income.
• Bank mortgage specialist: one bank's products. Fine for simple income and a straightforward property.
• Commercial mortgage broker: 5+ units and mixed-use. Packages NOI, statements and reports for lenders and CMHC.
• Commercial banker: lends on the building's income and your overall strength, usually with a personal guarantee.
• Credit unions: local, sometimes more flexible on smaller multi-units and unusual properties.

What the Listing Usually Doesn't Tell You

Asking price and gross rent are the easy numbers. What often isn't obvious is who pays the heat, whether the rents include parking or storage, whether every unit is legal, how much maintenance the seller has put off, whether utilities are separately metered, whether the tax bill changes after closing, and whether today's rents actually support the asking price. That's the stuff we dig into before you make an offer.

The Numbers That Decide Whether a Deal Works

• Gross rental income: every dollar of rent if every unit is full all year, plus parking, laundry and storage.
• Vacancy allowance: empty months and unpaid rent. No building is 100% full forever.
• Operating expenses: property tax, insurance, landlord-paid utilities, repairs, management, snow and lawn. Not the mortgage.
• Net operating income: gross income minus vacancy minus operating expenses.
• Cap rate: NOI divided by price. It compares buildings as if you paid cash. A high cap rate can mean a bargain or a building nobody else wanted.
• Cash flow: NOI minus the mortgage. What's left for you, before income tax and before the roof.
• Cash-on-cash return: annual cash flow divided by the cash you put in, including closing costs and day-one repairs.
• Break-even occupancy: how full the building has to be to stop losing money. Above about 85% leaves little room for a bad year.

Run your own numbers

Change any number below and everything recalculates. Illustration only, not a quote.

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Positive cash flow can still lose money

Take a six-unit building that will eventually need a $25,000 roof, $20,000 in windows and a $15,000 heating system. That's $60,000. Spread over 15 years, it's about $56 per unit, per month. If the building cash flows $300 a month and you aren't setting that aside, a fifth of your "profit" is really the roof's money. Budget a replacement reserve from day one.

New Brunswick Rules That Catch Investors Off Guard

Rent increases are capped at 3%

The province's rent cap has been in force since February 2025 and is staying at 3% for the 2027 calendar year, with the next review in May 2027 (Government of New Brunswick). Underwrite the property using the rents that legally exist today, not the rents you hope to charge tomorrow. A unit renting well below market can materially affect the building's economics for as long as that tenancy continues, so price it into the deal instead of assuming an immediate jump to market rent.

Security deposits go to the province, not to you

New Brunswick limits the security deposit based on the type and term of the tenancy: up to one week's rent on a weekly lease and one month's rent on most others. If the landlord collects the deposit, it must be sent to the Tenant and Landlord Relations Office at Service New Brunswick within 15 days, and the province holds it until the tenancy ends (Government of New Brunswick).

The tenants come with the building

Leases transfer to you on closing, exactly as they are. Read every one of them before your conditions come off. Below-market rents, side deals and leases that don't match the rent roll all change what the building is worth.

The Residential Tenancies Act is being modernized

The province's review is still underway. Fixed-term leases, evictions and rent control are all part of the conversation. Check the current rules before you buy, not after.

Rental property pays more property tax, and the seller's bill isn't yours

New Brunswick charges a provincial residential property tax of $0.5617 per $100 of assessment. A qualifying principal residence receives the Residential Property Tax Credit on the eligible owner-occupied portion, while rental and other non-owner-occupied portions generally do not. A sale, a change in classification or the loss of that credit can materially change the tax bill after you close. Send me the address and I'll estimate the carrying costs with you before you make an offer.

Land transfer tax is 1%

It's 1% of the purchase price or the assessed value, whichever is higher, paid on closing. Add legal fees, inspections, appraisal, any CMHC premium and day-one repairs to your cash-to-close number.

Is That Basement Apartment Actually Legal?

"In-law suite" is a marketing term, not a legal designation. A kitchen, a bathroom and a tenant don't make a unit approved. Before your conditions come off, confirm with the municipality or planning authority:

• Zoning allows the number of units being advertised
• Building permits and final inspections are on file
• Fire separation, fire-rated doors and egress meet code
• Electrical work was done under permit, and parking meets the bylaw
• The insurer knows every unit exists and is rented

Lenders may refuse to use income from an unapproved unit for qualification, and an undisclosed or non-compliant unit can create serious insurance problems.

Municipal rules are changing quickly. Moncton committed through its Housing Accelerator Fund program to zoning changes allowing four units as-of-right in residential areas (CMHC), and Riverview has been reviewing higher-density permissions through its municipal plan and zoning updates. Never assume those policies apply automatically to a specific property. Confirm the zoning, lot standards, parking requirements and permitted number of units for the address in writing. Depending on the municipality or rural area, planning may be handled by the municipality or the Southeast Regional Service Commission.

Buying an Investment Property as a Newcomer to Canada

What you can buy depends on your residency and tax status, not your nationality. If you're new to the country, the Moving to Moncton guide covers your SIN, PR card, banking and getting a mortgage as a newcomer.

• Citizens and permanent residents: the federal ban on non-Canadian buyers doesn't apply to you.
• The ban covers homes with three or fewer units in census metropolitan areas, which includes Greater Moncton. Buildings with four or more units are outside it, as are vacant land and purchases for development.
• Work permit holders may qualify with at least 183 days left on their permit at the time of purchase, if they haven't already bought residential property in Canada while the ban applied (CMHC).
• The ban is scheduled to end January 1, 2027. If your eligibility could be affected, have your lawyer confirm the rules in force on the day you buy.
• Financing: non-residents usually need larger down payments and face fewer lenders. Expect to document foreign income and show exactly where your down payment came from and how it got to Canada.
• Identification: your REALTOR®, lawyer and lender all have identity-verification and anti-money-laundering obligations, and depending on the transaction may ask for documents showing the source of your funds. It applies to everyone.
• Non-residents for tax receiving Canadian rental income are generally subject to 25% withholding on gross rent. With an approved NR6 and the required Section 216 return, withholding may instead be based on net rental income (CRA). Selling Canadian real estate as a non-resident also triggers special CRA reporting and certificate requirements, so involve an accountant and lawyer early.

Tell your lender and lawyer your exact status on day one. It saves weeks.

Due Diligence: What to Get Before Your Conditions Come Off

• Legal: permitted units, zoning, permits, any legal non-conforming status, open work orders.
• Fire safety: smoke and CO alarms, separations, rated doors, egress, inspection history.
• Systems: electrical capacity and metering, plumbing type (watch for galvanized and Poly-B), sewer scope, heating and who pays for it.
• Building: roof, foundation, drainage, windows, decks, parking. Rural: well yield and septic capacity for the number of units.
• Environmental: oil tanks, past commercial uses, and a Phase I on larger or older sites.
• Financial: rent roll, every lease, deposit receipts from Service New Brunswick, 12 months of utilities, tax bills, insurance history, and two to three years of statements on 5+ units.
• Consider tenant estoppel certificates on larger transactions where appropriate: each tenant confirms their rent, deposit and lease terms in writing, so the rent roll is confirmed by someone other than the seller.

Things That Should Make You Slow Down

• The seller can't produce leases, or the rent roll doesn't match them
• More units advertised than the zoning allows
• Basement apartment with no permits
• Extremely low rents, with a 3% cap standing between you and market
• Utilities far higher than expected, or shared electrical panels
• Old oil tanks, knob-and-tube or aluminum wiring, foundation movement
• Unexplained vacant units or ongoing tenant disputes
• Numbers the seller provided that nobody can verify

Should You Buy Personally or Through a Corporation?

Incorporating doesn't automatically cut your taxes. For a small rental portfolio it often costs more: annual accounting and legal fees, fewer residential mortgage options, and lenders who still want a personal guarantee. Buying personally can give you access to a broader range of residential financing options, particularly when you'll live in one of the units. Partnerships need a written agreement that covers what happens when someone wants out.

Decide with an accountant and a lawyer before you sign the offer, because the buyer name on the agreement matters. Certain bare-trust arrangements also face new CRA reporting for tax years ending on or after December 31, 2026, so co-ownership or nominee setups deserve a professional look.

Who Should Be on Your Investment Team?

I have a trusted contact for every role on this list and can introduce you at the right stage.

• Before you look: mortgage broker (residential or commercial) and an accountant.
• Before the offer: a real estate lawyer.
• During conditions: home or commercial building inspector, insurance broker, contractor for real repair prices, and an environmental consultant on larger sites.
• After closing: a property manager, if you're not doing it yourself.

Put management in the numbers even if you plan to self-manage. A deal that only works if you work for free is a job, not an investment.

Questions Investors Ask Me

Is Greater Moncton a good place to buy a rental property?

Anyone who answers that in one word is selling something. Prices are still well below the national average and demand is steady, but the 3% rent cap means you need to underwrite the building based on the rents that actually exist today, not on an assumption that you can quickly move them to market. Some buildings pencil out. Plenty don't. The numbers on the specific building decide it, not the city.

Can I use the rent to qualify for the mortgage?

On 1 to 4 units, yes, partly, and how much counts depends on the lender. On 5+ units the building's income is the main thing the lender looks at.

Should I manage it myself?

Plenty of duplex and fourplex owners do. Just keep a management fee in the numbers either way.

Can I renovate, refinance and pull my money back out?

Sometimes. The refinance depends on the appraisal, the rents, the lender and the market on the day you apply, and none of those are guaranteed. With a 3% cap on existing tenants, most of the upside comes on turnover or on the expense side.

Ready to Run the Numbers on a Real Building?

Whether it's your first duplex or a 20-unit building, the key is understanding the numbers before you fall in love with the property. Send me the address and I'll help you work out what it really earns, what it really costs, and whether it's worth an offer.

If you're also buying your own home, read buying before you sell and the buyer's guide. For the latest local numbers, check the market updates on my blog.

Call or text 506-852-6477.

Strong Roots - Smart Moves

Shane MacPherson, REALTOR®, eXp Realty