Multiplex financing under BC's small scale multi unit housing rules
British Columbia now requires more homes on many single family lots. Here is what the rules allow and how lenders finance the result.
The short answer
BC's small scale multi unit housing rules require local governments to allow 3 to 6 units on many lots zoned for single family or duplex use. Three or four units usually finance as residential, while five or six units on one title move into commercial and CMHC multi unit lending.
| Lot | Provincial minimum |
|---|---|
| 280 square metres or smaller | At least 3 housing units |
| Greater than 280 square metres | At least 4 housing units |
| Greater than 281 square metres, wholly or partly within 400 metres of a prescribed bus stop | 6 units must be allowed |
| Single family zones where three to six unit zoning is not required | Secondary suites and/or accessory dwelling units allowed |
Unit minimums apply within urban containment boundaries and municipalities over 5,000 people, on lots zoned for single family or duplex use.
What BC's small scale multi unit housing rules allow
The rules were introduced by Bill 44, the Housing Statutes (Residential Development) Amendment Act, 2023. Local governments had to update their bylaws to accommodate the requirements by June 30, 2024.
Within urban containment boundaries and municipalities over 5,000 people, on lots zoned for single family or duplex use, the minimum is 3 housing units on parcels of 280 square metres or smaller and 4 units on parcels greater than 280 square metres. Six units must be allowed on single family and duplex parcels greater than 281 square metres that are wholly or partly within 400 metres of a prescribed bus stop. A prescribed bus stop is served by at least one bus route scheduled to stop at least every 15 minutes on average between 7 am and 7 pm Monday to Friday and between 10 am and 6 pm on Saturdays and Sundays.
Secondary suites and/or accessory dwelling units are allowed province wide in single family residential zones where three to six unit zoning is not required. Local governments may allow more density but cannot allow fewer units than the provincial legislation.
Bill 25, the Housing and Municipal Affairs Statutes Amendment Act, 2025, passed November 27, 2025. It clarified that a zone where any parcel is restricted to a single detached home and/or duplex is a restricted zone that must meet the minimum unit density on all lots, and expanded that definition to lots where a single detached home with a secondary suite and a detached accessory dwelling unit is allowed.
Where residential financing ends and commercial begins
The line on residential property sits at five units. Four and under is underwritten as residential. Five and up is commercial, and the building's income carries the file.
So a triplex or fourplex usually stays in residential lending, while a five or six unit rental on one title is a commercial mortgage. The full comparison is on commercial versus residential mortgages.
Financing the build
A multiplex is a ground up build, so it is funded by a construction loan advanced in draws against cost to complete, then repaid by a takeout or by sales. How lenders size and advance that loan is covered on construction financing and in how construction draws work.
Test a budget first with the construction loan calculator.
Rental or strata?
Holding the units as rentals on one title keeps the building as a single income property, underwritten on its rents once it is finished. Stratifying for sale turns it into separate units, and the construction lender then looks to the sales as the exit. Strata units bring their own lender checks, covered on strata and leasehold commercial financing.
Rental can also change the tax on the purchase. From January 1, 2025 to December 31, 2030 a new qualifying purpose built rental building is exempt from property transfer tax, if it is non stratified, holds at least 4 separate apartments, and the entire residential portion is rented for at least 10 years. Run the numbers with the BC property transfer tax calculator.
Insured takeout on five and six unit rentals
Once a rental building reaches five units it can qualify for CMHC multi unit insured financing. MLI Select is CMHC's points based insurance program for rental housing of 5 units or more.
CMHC's standard rental housing insurance requires at least 5 rental units and allows a maximum loan to value of 85 percent. The borrower needs proven competence managing a similar size and type of property, generally five years of multi unit property management experience or a property manager with that record, and a net worth of at least 25 percent of the loan. That is often the hurdle for a first time multiplex builder.
On a new build, the insured mortgage takes out the construction loan once the building is finished and leased, as explained on MLI Select for new construction.
Check your lot before you buy
Zoning is set by the municipality. The provincial minimums apply only where their conditions are met: the lot size, the urban containment boundary and population tests, and for six units, a parcel greater than 281 square metres that is wholly or partly within 400 metres of a prescribed bus stop. Confirm what your lot allows with the local government before you write an offer.
Then value it on what it can become, using how to value a commercial property.
Sources: Province of British Columbia, small scale multi unit housing, Province of British Columbia news release, November 1, 2023, Province of British Columbia, Small Scale Multi Unit Housing Provincial Policy Manual and Site Standards, Revision 5, January 20, 2026 and CMHC, Mortgage Loan Insurance for Standard Rental Housing. Checked October 2026. Zoning rules and local bylaws change; confirm with your municipality.
Multiplex questions.
Related reading
Let's fund your next deal
Send the lot, the unit count and the budget. A senior broker will tell you which lending route fits your BC multiplex, usually the same day.