The line between four units and five units
In Vancouver housing, a fourplex is four homes on one lot. A fiveplex adds one more. On paper that is a small change. For funding, it can be a big one.
The reason is a program called CMHC MLI Select. CMHC is Canada Mortgage and Housing Corporation, a federal agency. MLI Select is its insured loan program for rental buildings. As of 2026, a building must have five or more self-contained rental units to qualify. A self-contained unit has its own kitchen and bathroom. Four units do not reach the door. Five units open it.
What the fifth unit can change
When a project fits MLI Select, the funding terms can look very different from a normal construction loan. The program is built to support rental housing, so it rewards projects that add rental units.
These figures are the program ceilings as of 2026. They depend on the points a project earns for things like affordability and energy use, and they change with the market. Nothing here is financial advice.
- Financing up to 95 percent of value, which can mean as little as 5 percent equity from you.
- Amortization up to 50 years, which spreads payments over a longer time and lowers the monthly amount.
- Terms aimed at rental projects, not owner-occupied homes.
What a one to four unit project usually needs
A conventional construction loan is the normal way to fund a one to four unit build. Conventional means a regular lender loan without CMHC rental insurance behind it.
With these loans, lenders usually want a much larger share from you. As of 2026, that share is often 25 to 40 percent of the project cost in equity. Equity is the money and value you put in yourself, before the loan. So a fourplex can ask for far more of your own cash up front than a fiveplex under MLI Select.
The trade-offs of going to five
A fifth unit is not free. MLI Select is a rental program, so the units generally must stay as rental homes, not homes you sell one by one. If your plan was to build and sell each unit, this path may not fit.
Five units also means more building, more cost, and more steps. The approval process is longer and stricter than a small loan. You take on a bigger project and a bigger loan. Bill 44, effective June 30, 2024, made multiplex housing possible on many former single-family lots in BC, but each lot still has its own limits on size and unit count.
- Units generally must be rental, so a build-to-sell plan may not work.
- Larger project size, higher total cost, and more construction.
- Longer and more detailed approval than a standard loan.
- The lot must physically and legally support five units.
Is five right for your project?
The fifth unit is a tool, not a rule. For an owner or builder who wants to hold rental units for the long term, the lower equity and longer amortization can make a project possible that a conventional loan would not.
For someone who wants to build and sell, or who cannot manage a larger project, four units and a conventional loan may be the better fit. Run both paths with your own numbers and a qualified advisor before you decide. This article explains the options and is not financial advice.