Vancity Credit Union to finance 80% of costs for new multiplex homes | Daily Hive

Vancity Credit Union to cover up to 80% of cost to build new multiplex homes in new loan program

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Building on its history of community investment and social impact, Vancity Credit Union has launched a new loan program that covers up to 80 per cent of the cost to build new multiplex homes.

These are low-rise, four-unit, multi-family residential buildings — such as duplexes, triplexes, and fourplexes. It complements the provincial government’s new small-scale multi-unit housing (SSMUH) legislation, which municipal governments across British Columbia have adopted through required bylaws and zoning changes.

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The credit union states its new “Multiplex Construction Mortgage” product includes 18 months of interest-only payments during construction, flexible terms and amortizations for each co-owner, and rental offset options with qualification.

It is noted that no incorporation is required, as this product is designed for personal homeownership, including supporting new multi-generational living and aging-in-place opportunities.

With sustained high borrowing costs, this provides a new, more attainable financing tool for homeowners and small builders.

This product is available for eligible developments in Metro Vancouver, the Fraser Valley, Victoria, Squamish, and Alert Bay.

Examples of multiplexes in the City of Burnaby’s Housing Design Library. (Haeccity Studio/City of Burnaby)

“This mortgage reflects what Vancity 2.0 is all about–– creating modern, innovative financial solutions that help people and communities thrive,” said Wellington Holbrook, CEO of Vancity, in a statement today.

“We’re reimagining what a credit union can do by offering products that make everyday banking better while tackling real challenges like housing affordability.”

Ryan McKinley, senior mortgage development manager at Vancity, added, “Middle housing projects take time, and they often require stepping outside cookie-cutter financing models. That’s where we come in. You don’t need to be a seasoned developer. We’re here to help residents succeed in building the kind of gentle density our cities need.”

The credit union also shared that this mirrors a similar product they created over a decade ago, when they provided construction financing to build new laneway homes, in response to the City of Vancouver’s then-new approach of allowing such small-scale residential structures.

According to Barzelai Building, as of late 2024, constructing a new multiplex in Vancouver costs roughly $930,000 per unit, bringing the total price for a typical four-unit development to about $3.7 million. This estimate reflects current land, design, and construction expenses and other fees under the city’s multiplex zoning framework.

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