Mortgage Brokers often ask what separates a complex Multiplex deal that gets approved from one that gets stuck in underwriting.
Recently, we financed a six-property multiplex portfolio acquisition in London, Ontario and it was a great example of what lenders see when evaluating a file. The borrower was purchasing a seller's entire portfolio under one agreement, consisting of six triplexes and fourplexes across the city. It was a strong acquisition with solid fundamentals, but what really stood out wasn't just real estate; it was how the deal was packaged and presented.
As lenders, we're not only looking at the properties. We're looking at the borrower, the numbers, the exit strategy, and whether the multiplex deal makes sense from start to finish. This file checked all the boxes.
The Broker Came Prepared
One of the key reasons this Multiplex deal moved smoothly was because the broker submitted a complete package upfront.
The file included:
- Mortgage application
- Credit reports
- NOA (Notice of Assessment)
- Corporate documents and tax information
- Proof of funds for the down payment, closing costs, and carrying costs
- Tenant information and transition plans
- A detailed exit strategy
This may seem straightforward, but incomplete submissions are one of the main reasons deals are delayed.
A well-prepared submission gives lenders the information they need to make a decision sooner, helping avoid back-and-forth questions and keeping the process moving smoothly. In this case, we had everything we needed from the start, which allowed our team to focus on underwriting the opportunity and structuring the terms needed to provide certainty for the broker and their client.
The Exit Strategy Made Sense
If there's one thing mortgage brokers should focus on when submitting a multiplex deal, it's the exit strategy.
At some point during every review, there is one simple question:
What makes the client successful?
In Multiplex deal, the mortgage broker clearly outlined the borrower's plan for the portfolio after closing. There was a realistic timeline, reasonable assumptions, and underwriting that supported a future refinance.
We want to ensure that the borrower has thought beyond the acquisition and has a clear path to refinancing or repaying the loan to be successful in their goals. A strong exit strategy gives mortgage brokers and their clients confidence and plays a major role in the approval process.
Numbers Drove the Decision
The numbers on this deal also worked in the borrower's favour. The six-property portfolio was purchased for approximately $1.2 million, while the combined market value was estimated at over $1.5 million. That meant the borrower was stepping into the deal with built-in equity from day one.
Equity reduces risk and provides a stronger foundation for both the initial financing and the future refinance. It also creates more flexibility if timelines shift or market conditions change. The strongest files tell a story the numbers can support.
Communication Kept the Deal Moving
Even the most organized files generate questions during underwriting. Whether it's clarification on financials, tenancy details, corporate structures, or valuation assumptions, there is always additional information required along the way.
What stood out in this deal was how responsive the mortgage broker was throughout the process from underwriting to valuations. That responsiveness helped keep momentum and streamlined the speed to approval. Proactive communication helps borrowers get to the finish line faster.
How Brokers Can Replicate This Success
Every deal is unique, but the files that move through underwriting the quickest usually have a few things in common:
- A complete document package upon submission
- A realistic and well-defined exit strategy
- Proof that the borrower has the funds to close
- Strong communication throughout the process
- A clear explanation of why the deal makes sense
This London multiplex portfolio had all those elements. The learning isn't simply that it was a six-property acquisition. The learning is that the mortgage broker made it easy for the lender to understand the opportunity, assess the risk, and get comfortable with the borrower's plan.
Multiplex deal get approved faster and with greater certainty when they're presented properly. The clearer and more complete the submission, the easier it is for decision-makers to move quickly and confidently.
For mortgage brokers, that's often the difference between a file that closes smoothly and one that struggles to get across the finish line.
Explore a new-build multi-duplex case study we funded with the goal of refinancing.
