If you're house hacking in Ontario, the answer isn't always the property with the most units. Here's the real math on triplexes vs fourplexes — down payments, mortgage costs, rental income, and what you'll actually pay each month.
If you've been looking at multi-unit properties in Ontario, you've probably thought about it: buy a triplex or fourplex, live in one unit, rent out the rest, and let the tenants chip away at your mortgage. More units means more income, so a fourplex must be better — right?
Not so fast. Once you run the real numbers — down payment, mortgage math, rental income, and actual monthly costs — the answer gets a lot more interesting.
Let's compare two realistic properties in today's Ontario market:
Both are owner-occupied purchases with a 25-year amortization at a 4.5% interest rate.
One of the biggest advantages of 1-to-4 unit properties in Canada is that if you live in the property, you don't need 20% down. You can use the minimum down payment.
The difference? Just $30,000 more for an entire extra unit — which is why so many buyers immediately lean toward the fourplex.
At 4.5% over 25 years:
The fourplex costs about $1,500 more per month before we even look at rental income. That's the gap we need to close.
Remember — you're living in one unit, so you're not renting out the whole building.
After subtracting rent from your mortgage payment:
The fourplex already wins by $700/month — before expenses.
Property taxes, insurance, maintenance, and a vacancy buffer matter. Here's a realistic estimate:
This is what you're actually paying to live there each month:
To put that in perspective — the average rent for a one-bedroom apartment in Mississauga is well over $2,000/month. With the fourplex, you could be living in your own home, building equity, for less than a one-bedroom condo rental. That's the power of this strategy.
Here's the part most people gloss over. Even though the fourplex generates more rent, lenders don't use 100% of that rental income when qualifying you. The fourplex carries a higher mortgage, a higher stress-tested payment, and stricter qualification requirements. It's doable — but you need to make sure you can actually get approved before you fall in love with the numbers.
Triplex: Lower mortgage, fewer tenants, easier to manage. A good starting point for first-time investors or more conservative buyers.
Fourplex: Higher debt, more tenants, more potential turnover. If one unit goes vacant or a big repair comes up, the impact is larger. Best suited for higher-income buyers or more experienced investors.
This is owner-occupied — you're going to be living next to your tenants. A triplex with two neighbours is simpler and quieter. A fourplex means three tenants, more movement, and more active management. Neither is wrong, but it has to fit your life.
If your only goal is to minimize your monthly housing cost, the fourplex wins — it costs about $430/month less to live in than the triplex.
But the best property is the one you can actually hold, qualify for, and feel comfortable in. If the fourplex stretches you too thin, the triplex is the smarter move — and even with the triplex, you're still paying less per month than renting a one-bedroom in Mississauga.
Both are genuinely solid strategies. The right one depends on your income, your lifestyle, and your 3-to-5 year goals.
Multi-unit properties are a big part of what I do every day. I'll walk you through your income, your qualification, your cash flow, and the best strategy for your specific situation. Book a call with me here — let's run your numbers together.
