CMHC Rental Construction Financing is interest only during the construction period, with a maximum amortization period of 25 years. After the construction period, the loan must be refinanced into a CMHC insured mortgage loan.
It is designed to encourage the construction of new rental housing units by providing low-cost financing to qualified developers. The program is intended to improve the supply of purpose-built rental housing units in CMAs and large urban centers across the country by:
– Encouraging the construction of new rental housing units.
– Helping to ensure an adequate supply of rental housing for middle-market renters.
– Supporting the development of a more diverse and competitive rental housing market.
– Generating economic benefits through the construction of new rental housing units and the creation of jobs.
– Acquiring land.
– Constructing new rental housing units.
– Refinancing existing debt.