A free tool for underwriting Quebec income property with the rules that actually apply here: Montreal's own welcome-tax schedule, CMHC lending caps by unit count, the TAL rent-increase ceiling, and CCA recapture on sale.
This calculator underwrites duplexes, triplexes, quadruplexes, 5+ unit buildings, condos and flips in Quebec. It applies Montreal's welcome-tax schedule (reaching 4% above $3,113,000), CMHC loan-to-value caps (95% for 1–2 units, 90% for 3–4), the TAL's 3.1% suggested increase for 2026, and Class 1 capital cost allowance at 4%.
Most income-property calculators are American. They miss four rules that decide whether a Quebec plex works.
Welcome tax: Montreal is the only municipality permitted to exceed the 3% provincial ceiling, and its schedule reaches 4% on the portion above $3,113,000. Off the island, the provincial base schedule applies and costs materially less on the same price.
The TAL ceiling: the suggested increase for 2026 is 3.1%, and it applies to sitting tenants. A rent only reaches market when the unit turns over, which spreads the value-add across years.
Financing: at five units a building stops being residential and becomes commercial. The loan is no longer set by your down payment but by the debt-service coverage the net operating income supports.
CCA: Canada uses declining-balance Class 1 depreciation at 4%, and everything claimed is recaptured on sale. It is a deferral, not a saving.
Start with the area. Prices, rents and the municipal tax rate adjust to the borough or off-island city you pick, and the welcome-tax schedule switches automatically once you leave the Montreal agglomeration.
Then choose the property type. Unit mix, financing track and operating expenses reseed to that type's area medians.
Finally enter the real rent roll: in-place rents, market rents, unit sizes. The gap between what the leases collect today and what the units achieve on turnover is the heart of the calculation.
Figures come from public sources dated July 2026 and are a starting point, not an appraisal. Municipal tax rates are estimated from price: replace them with the actual tax bill. MLI Select premiums are indicative; CMHC prices each file individually.
Area price indices are anchored to published figures for six areas; the rest are interpolated by relative standing, and the tool labels which is which.
This tool does not replace a mortgage broker, an accountant or an inspection.
Montreal applies its own progressive schedule: 0.5% to $62,900, 1% to $315,000, 1.5% to $552,300, 2% to $1,104,700, 2.5% to $2,136,500, 3.5% to $3,113,000, and 4% above that. On a $900,000 triplex that is roughly $13,400. Outside the agglomeration the provincial base schedule tops out at 1.5% above $315,000, which costs considerably less on the same price.
If you occupy one of the units, a triplex is insurable to 90% loan-to-value, so 10% down is the minimum. An owner-occupied duplex insures to 95%: 5% on the first $500,000 then 10% on the balance. If you do not occupy the building, mortgage loan insurance is unavailable and the minimum down payment is 20%.
At five units and above the building is financed as a commercial asset. The lender no longer sizes the loan from your down payment but from net operating income: it takes the lesser of the loan-to-value cap and the amount the income supports at the target debt-service coverage ratio, typically 1.10 to 1.30. On a low-income building the coverage test binds, and the equity required can far exceed 25%.
For a sitting tenant the TAL's suggested increase is 3.1% for leases beginning between 2 April 2026 and 1 April 2027, plus certain additions such as increases in municipal and school taxes, insurance, and a portion of major work. A rent only reaches market level when the unit turns over.
Class 1 CCA reduces taxable income by 4% a year on the building portion, declining balance, with the half-year rule in year one. But everything claimed is recaptured on sale and taxed at your full marginal rate rather than the lower capital-gains rate. It is a tax deferral: useful if your marginal rate falls before you sell, costly if it does not.
It is the value the lender computes for itself to decide the financing on a 5+ unit building, and it differs from the market price. The bank substitutes its own standards for four expense lines (management, maintenance and repairs, janitorial, vacancy), divides the normalized net income by its debt coverage ratio, discounts that payment at a stress-tested qualification rate, and divides the resulting loan by the loan-to-value ratio. If that value comes in below your purchase price, the loan is capped by the bank's number and you cover the entire gap in cash: the real down payment becomes price minus maximum loan, not 20% of price. The normalized figures are not public and vary by institution, they generally draw on CMHC standards, and the value moves with qualification rates.
Gross yields generally run 4–5% and net yields 2.5–4% depending on the area. At 20% down and current rates, many Montreal plexes with rent-controlled leases do not produce positive cash flow in year one: the return comes from principal paydown, appreciation and resetting rents on turnover. Central boroughs show lower cap rates than peripheral ones.