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Small Rental Program (Non-Owner Occupied)

The Small Rental Program offers first mortgage financing for non-owner occupied/investment properties.

A modern open concept eat in kitchen.
Small Rental Program Details
Eligible MCAP Products
  • Insurable loans maximum 2-4 units
  • Uninsurable loans maximum 1-4 units
    • Standard 5 year Fixed Rate
    • VIP M-Power (5 year closed)
  • Purchase, refinance / equity take-out, purchase plus improvements, assumptions, transfer, ports  and replacements
Property Type
  • Non-owner occupied condo, single family, duplex, triplex and fourplex rentals
  • Maximum 4 rental properties per borrower (no more than 2 rental properties can be held by MCAP) 
  • Contact MCAP for details on fire code requirements (retrofit) *Applicable in Ontario only
  • Located within 30 kms from markets with populations > 25,000
  • Insurable minimum 750 sqft, condo 500 sqft
  • Uninsurable minimum 850 sqft, condo 500 sqft
  • Excludes:
    • Condo Conversions
    • Properties in Chatham and Brampton (ON)
    • Condo that is part of any type of condo hotel and/or legally tied to a rental pool agreement
    • Manufactured/mobile homes
    • Zoned Agricultural or Land reserve
  • Restrictions: Quebec restricted to the following areas:
    • Greater Montreal Metropolitan area
    • Greater Quebec City
    • Greater Sherbrooke
    • Greater Hull-Gatineau area
    • Greater Trois-Rivieres area
  • All loans are subject to a surcharge in rate
    See rate sheet for details
Loan Amount
  • Uninsurable — $50,000 to $500,000 ($200,000 maximum for equity take-out)
  • Insurable — $50,000 to $799,999.99
Maximum LTV
  • 80% — insurable (minimum 100K net worth)
  • 70% — uninsurable
Down Payment
  • From own resources (gifted down payment is not allowed)
  • Minimum 5 years (15 years VIP M-Power)
  • Maximum 25 years
Payment Options
  • Monthly, semi-monthly, bi-weekly (accelerated), weekly (accelerated)
  • Flexible payments and payment day
Early Payout
  • Early Payout Premium
    • Greater of 3 months interest or Interest Rate Differential for Fixed Rate 5 Year Closed
    • 3 months interest for VIP M-Power
  • Reinvestment Fee: $500 in Year 1, $400 in Year 2 and $300 in Year 3 of your term
20% + 20% Prepayment Privilege
  • Lump sum up to 20% of the original principal amount (minimum $100)
  • 20% increase in payment (incremental fixed amount can be added to principal and interest payment)
  • Maximum 2 rental properties with MCAP per borrower, some exceptions may apply
  • Maximum 4 rental properties (including those held at other financial institutions) per borrower
  • Available with Home Mortgage Protection (mortgage life insurance)
  • Portable, assumable and transferable upon approval
*Some exceptions available for transfer ins. See Transfer Program fact sheet for details.
Status Restrictions may apply. Please refer to your Business Development Manager or underwriter for further details.
Subject to change without notice.
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