A proforma looks intimidating, but four numbers tell you whether a multiplex deal works. Here's what GPI, NOI, DCR and the takeout loan actually mean.
Updated 2026-06-15
Gross Potential Income (GPI) is every unit rented at market, plus parking and other income. Subtract a vacancy allowance and you get Effective Gross Income (EGI) — the rent you can actually count on.
Take EGI, subtract operating expenses (taxes, insurance, utilities, maintenance, management) and you get Net Operating Income — the cash the building throws off before financing. NOI drives both value and how much debt the project can carry.
Lenders size the loan so NOI comfortably covers the mortgage — the debt-coverage ratio (DCR). MLI Select allows a lower DCR (around 1.10), which means a bigger takeout loan and less equity left in the deal. That's the lever that makes small multiplexes work.
Every Lotmax listing builds this stack automatically. Pick a lot and read its proforma end to end.
Net Operating Income — effective gross income minus operating expenses, before financing. It drives the property's value and how much it can borrow.
Conventional lenders often want around 1.20+, but CMHC MLI Select can allow as low as roughly 1.10, which supports a larger loan.
As-of-right unit potential shown here is a planning guide generated from Toronto's multiplex and Expanding Housing Options in Neighbourhoods (EHON) permissions, not legal advice. Always confirm what a specific lot allows with the City of Toronto or a qualified planner before purchasing or designing.
