Buying a Duplex or Investment Property in Kingston: What to Check Before You Offer

How is financing different for a duplex, a fourplex and a larger building?

It depends on how many units the building has and whether you will live in one of them. If you live in one unit of a building with one to four units, CMHC-insured financing lets you put down as little as 5% of the first $500,000 and 10% of the rest on one or two units, and 10% on three or four units, as long as the price is under $1.5 million. If you will not live there, the minimum down payment is generally 20%. Buildings with five or more units are usually financed commercially. Lender rules change, so confirm the numbers with a mortgage broker before you offer.

Minimum down payment by building type

Building	You live in one unit	Rental only
Duplex (2 units)	5% of the first $500,000, plus 10% of the rest	Generally 20%
Triplex or fourplex (3 to 4 units)	10%	Generally 20%
Five or more units	Usually commercial financing	Usually commercial financing

Source: CMHC homeowner mortgage loan insurance and the CMHC quick reference, checked October 2026. Insured homeowner loans have a 25 year maximum amortization, with 30 years possible through CMHC Home Start. Lenders can ask for more than these minimums.

To see what a payment looks like at different prices and down payments, try the mortgage payment calculator.

Is every unit in the building legal?

Ask for proof. A second or third unit added without a building permit may not be legal, even if it has tenants and the listing counts it. Ask the seller for the permits and any final inspection, then confirm with the City of Kingston before you rely on the rent from that unit. In Kingston a building permit is required for an additional residential unit, and the unit must meet the Ontario Building Code.

The City of Kingston's rules for additional residential units are a useful checklist of what to confirm for any address:

• Where they are allowed. Most properties in Kingston, with the exception of rural properties. Check the City's zoning map for the specific address.
• Where they are not. The City lists a cellar or basement on sewer surcharging lands, lands marked for sewer capacity limitations or Loughborough Lake, lands subject to natural hazards, and a lot that already contains two or more dwelling units, a garden suite, or a boarding or lodging house. Some properties may need an individual analysis or a zoning amendment.
• Existing units that were never approved. The City says unauthorized units must be legalized, and a building inspector will identify any required renovations.
• Parking. Each additional unit needs at least one parking space.

Source: City of Kingston, Additional Residential Units, checked October 2026.

What happens to the tenants when you buy?

A sale on its own does not end a tenancy, so you generally take over the tenants and the rent they pay. Ontario lets a buyer who wants to move into a unit end that tenancy only in a building of three units or fewer, through a formal notice and a Landlord and Tenant Board process, and the rules for those notices changed on September 21, 2026. Get legal advice before you count on a vacant unit.

Before you go firm, ask for:

• Every lease, with start dates, end dates and who pays which utilities.
• The current rent for each unit and the date it last went up.
• Any unpaid rent or disputes with the tenant, including anything filed with the Landlord and Tenant Board.

A buyer who wants to live in a unit uses the Form N12 notice. The Landlord and Tenant Board's guidance says the purchaser ground applies only where the property has no more than three residential units, that the notice period is 60 days, and that a tenant who does not agree can stay until the Board issues an order. Only the Sheriff can carry out an eviction.

Source: Landlord and Tenant Board, How a Landlord Can End a Tenancy, checked October 2026. This is general information, not legal advice.

How do Ontario rent rules affect what a building can earn?

Most Ontario rents can rise only by the yearly guideline, which is 2.1% for 2026, no more than once every 12 months and with 90 days' written notice in the proper form. Units first occupied for residential purposes after November 15, 2018 are exempt from the guideline, and the landlord has to prove that date. Two similar buildings can therefore have very different rent potential. Ask which units are exempt and when each rent last went up.

This is why a rent roll matters more than a listing's description. A unit renting well below market may not be able to catch up quickly, while a newer unit that is exempt can be priced differently. Ask the seller to show which category each unit falls into, and do not assume.

Source: Government of Ontario, Residential rent increases, checked October 2026.

What numbers should I ask for before I make an offer?

Ask for the rent roll, copies of the leases, and the last 12 to 24 months of actual income and expenses, including property taxes, insurance, utilities, repairs and any unpaid rent. Net operating income is the rent actually collected minus the operating costs, before the mortgage. A listing's stated rent or an owner's estimate is not a substitute for documents.

• Utilities. Which are separately metered, and who pays for each.
• The property tax bill and the last 12 months of utility bills.
• Insurance. Get a quote for the building as a rental before you go firm.
• Repairs and age of the main systems. The roof, furnace, wiring and plumbing are the costs that surprise first-time landlords.
• Vacancy. Ask how long each unit sat empty the last time it turned over.

I can help you gather these and compare buildings side by side. I do not quote rent, vacancy or return figures here, because they depend entirely on the building in front of you.

What other local rules should I check?

Ask the City whether the building is subject to any licensing, inspection or property standards requirements, and what the zoning allows. Kingston licenses short-term rentals under its own by-law, and the City has looked at a licensing program for rental properties of one to four units, so do not assume the rules are the same as they were for the previous owner.

Rules like these are set by the municipality and can change, so confirm the current position with the City for the specific address. Landlord responsibilities under the Residential Tenancies Act and the City's property standards by-law apply regardless.

Sources: City of Kingston, Short-Term Rental Licensing. The residential rental licensing program was a proposal when I checked in October 2026, so ask the City for its current status.

What should I check before I offer on a duplex or investment property?

Confirm how the financing works for your situation, that every unit is legal, what the leases say and which rents are protected by the guideline, what the building actually earns after costs, and what local rules apply. Then have an inspector look at the roof, furnace, wiring and plumbing, and speak with a mortgage broker and a real estate lawyer before you go firm.

1. FinancingWhether you will live in a unit, and how many units the building has, decide the down payment and the lender.
2. Legal unitsAsk for permits and confirm each unit with the City of Kingston.
3. Tenants and leasesRead every lease and know which tenancies you are taking over.
4. RentsKnow which units fall under the guideline and when each rent last increased.
5. Real numbersRent roll, tax bill, utilities, insurance quote and 12 to 24 months of actuals.
6. ConditionAn inspection of the roof, furnace, wiring and plumbing, with a septic and well check if the property is rural.
7. Local rules and legal adviceLicensing, zoning and the notice rules, with a real estate lawyer before you go firm.