# What Property Factors Influence Mortgage Approval?

> The property's value, type, and number of units all impact mortgage approval, especially for investment properties.

Category: Investor
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/investor/what-property-factors-influence-mortgage-approval

## Answer
Here's a quick look at CMHC insurable Loan-to-Value (LTV) limits for owner-occupied vs rental properties:

| Loan Type | Units | Max Insurable LTV | Notes |
|---|---|---|---|
| Purchase Loans (Owner-Occupied) | 1-2 | Up to 95% | Investment properties max 80% LTV |
| Purchase Loans (Owner-Occupied) | 3-4 | Up to 85% | Investment properties max 80% LTV |
| Small Rental Loans | N/A | Up to 80% | Max insurable property value is $1,000,000 |

## Institutional highlights
- Your lender needs to be confident in the property's value when you apply for a mortgage.
- Lenders look at where the property is, what type it is, and current market trends to determine its value for your loan.
- The lender will assess the property's value through an on-site visit, a professional appraisal, or by using computer models.
- The maximum mortgage you can get depends on how many units the property has; for example, you'll need a minimum 20% down payment (max 80% LTV) for a triplex or duplex investment property.

## Related guide
- https://ratellow.com/guides/multi-unit-financing-rules

## Sources
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- Property value used for the LTV ratio — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017