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2525 blv Daniel-Johnson, Laval, QC, H7T 1S9
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Fax: 514-533-0143
Owners of rental buildings — Quebec
Has your lender declined to renew the mortgage on your rental property?
On a plex or a multi-unit building, a declined renewal usually comes down to the building's numbers rather than to you. Depending on the equity, the rental income and your borrower profile, other refinancing options may exist.
- Renewal declined on a rental building
- Duplex, triplex, plex or multi-unit to refinance
- B or private lender asking for repayment
- Maturity approaching on an income property
Nectarios Petropoulos, mortgage broker (licence 237338), Dominion Lending Centres National. Free, confidential review with no obligation.
Request a free review
Fill out the form and we will call you back to go over your file. No obligation on your side.
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We will contact you shortly to discuss your situation. If your request is urgent, you can also reach us at 514-999-9946.
Who this is for
Does any of this sound like you?
Income properties are underwritten on a different grid than a principal residence. When the grid moves, renewal becomes uncertain.
The ratios no longer work
Debt coverage or loan-to-value no longer meets the lender's criteria, often because rates or operating costs have risen.
Rental income questioned
Unsigned leases, below-market rents, a vacant unit or one occupied by a relative: the lender does not recognize the income you were counting on.
Private loan at maturity
Private financing put in place for an acquisition or renovations comes due and has to be replaced.
Building seen as atypical
Unit count, condition, mixed use or location: the property falls outside the current lender's criteria.
The basics
On a rental building, the building qualifies as much as you do
A lender looks at two things: your personal file, and the building's ability to service its own debt. Recognized income, allowable expenses and the calculation method vary from lender to lender — which is often exactly why the same file passes elsewhere.
A decline from one lender says nothing about the value of your building. It says its calculation grid no longer matches your file. Here are the routes that can be reviewed.
Options that can be reviewed
Transfer to another prime lender
Some lenders recognize a larger share of rental income or apply different normalized expenses. The same building can produce a different result.
Alternative (B) lender
More flexible qualifying on income and credit, in exchange for a higher rate and fees. Often a transition step.
Private financing
Short-term, secured by the building's equity, when maturity is close. Useful to avoid a forced sale, with a defined exit plan.
Refinance after cleaning up the file
Signed leases, up-to-date statements, documented rents: in many files it is the preparation that unlocks the financing, not the lender.
In some files, selling one building and consolidating around the others is the more profitable strategy. That route is reviewed alongside the rest.
The process
How the review works
A simple three-step process, at no cost and with no obligation.
We build the picture
Building value, balance, maturity, actual income and expenses, leases, vacancy and your personal situation.
We compare the options
We look at which lenders you and the building can qualify with, and on what terms.
We coordinate
If you move ahead, we work with the lender, the appraiser and the notary to hit the deadline.
What changes
What the review can give you
Every file is different and no outcome can be guaranteed in advance. Here is what the review usually gives you.
- A precise read on which number is blocking the renewal.
- The lenders whose rental income calculation works best for your building.
- The effect that cleaning up leases and paperwork would have on your eligibility.
- A way to avoid a pressured sale because maturity arrived without a plan.
Who you will be talking to
A mortgage broker specializing in non-standard files
Nectarios Petropoulos is a mortgage broker with Dominion Lending Centres National and has worked since 2016 on files the banks have declined, including plexes and income properties.
A broker works with several lenders: banks, alternative lenders and private lenders. The job is to compare what exists for your situation and explain the consequences of each option, including when doing nothing is the better call.
- Broker
- Nectarios Petropoulos
- Licence number
- 237338
- Brokerage
- Dominion Lending Centres National
- Office
- 2525 Daniel-Johnson Blvd, Laval, Quebec H7T 1S9
- Phone
- 514-999-9946
Frequently asked questions
Income properties: your questions
Why would a lender decline to renew a rental property?
Most often because the building no longer meets the required ratios: debt coverage, loan-to-value, recognized income, normalized expenses. Credit, the type of building, its location or a simple change in the lender's internal policy can also come into play.
What types of buildings can be reviewed?
Depending on the lender: duplex, triplex, fourplex, plex and multi-unit residential, including some mixed-use buildings. Criteria and rates differ noticeably between 1-to-4-unit residential and 5-plus-unit multi-residential.
Do below-market rents hurt my file?
They can reduce recognized income, since many lenders work from rents actually collected. Some will accept a market rent analysis in specific cases. It is worth checking before an application goes in.
Can I refinance if my private lender wants repayment?
Possibly. We review the equity, the building's income, your financial situation and the time left before maturity to identify the options that are genuinely available. No outcome can be guaranteed before that review.
Will I need financial statements?
For an income property, expect to provide leases, a rent roll, tax bills, insurance and your tax returns. A complete file speeds up the answer and widens the list of possible lenders.
When should I start?
Ideally three to six months before maturity. On a rental building, the appraisal and document review take longer than on a home.
Financing coming due?
Let's go through the building, its numbers and the lenders that can take over.
The information on this page is provided for general guidance only and is not an offer of credit or a guarantee of approval. Financing criteria for income properties vary with the lender, the number of units, the location and your file, and are subject to review.