An investor approaches you, a mortgage broker, about purchasing a multi-unit residential property in Montreal for $1,200,000. They have $300,000 for a down payment. What is the minimum down payment requirement for this type of property, assuming it has 1-4 units and will be owner-occupied?

Question: An investor approaches you, a mortgage broker, about purchasing a multi-unit residential property in Montreal for $1,200,000. They have $300,000 for a down payment. What is the minimum down payment requirement for this type of property, assuming it has 1-4 units and will be owner-occupied?

Answer options:

• A. $60,000 ✅ B. $120,000
• C. $240,000
• D. $300,000

Correct answer: B. $120,000

Explanation: For 1-4 unit residential properties where one unit is owner-occupied, standard down payment rules apply: 5% on the first $500,000 ($25,000) and 10% on the portion between $500,000 and $1,000,000 ($50,000 for $500,000 part), and 20% on the portion above $1,000,000 ($40,000 for $200,000 part), leading to a total of $115,000. If not owner-occupied, the minimum is 20%. The question implies an investor, so $240,000 (20%) would be needed.