Should I use CMHC-insured financing or a conventional mortgage for a small multi-unit property in Ontario?

The right choice depends on factors specific to your situation, including whether you will occupy part of the property, the building's condition and unit count, and how much down payment you have available. CMHC-insured financing can allow a lower down payment on eligible small multi-unit properties where the buyer will genuinely occupy at least one unit, following the same general down payment tiers that apply to owner-occupied one-to-four-unit purchases, but it comes with mortgage insurance requirements and its own qualification criteria.

Conventional financing, with a larger down payment and no mortgage insurance requirement, avoids those insurance-related conditions and can offer more flexibility in some cases, but it generally requires more capital upfront. Which path makes more financial sense depends on your specific numbers, timeline, and whether you actually meet the occupancy or other criteria CMHC-insured options require. Because lender products and criteria in this space change and vary, compare your specific options with a mortgage professional rather than assuming one path is automatically better for a small multi-unit purchase.