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CMHC Rental Housing Construction2022-11-29T19:34:48+00:00

CMHC Rental Construction Financing

CMHC rental construction financing provides low cost funding to eligible borrowers during the most risky phases of product development of rental apartments (construction through to stabilized operations). The minimum loan is $1,000,000, and a maximum of up to 100% of Loan to Cost (for residential loan component). CMHC Rental Construction financing can be used for a variety of rental housing types.

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Standard Rental Apartment Projects

So How Does CMHC Rental Construction Financing Work?

To apply for CMHC Rental Construction Financing, developers must submit a Loan Application to their lender who will then review and assess it. The application will include information about the developer’s experience and track record, financial information about the project, a detailed business plan outlining the project’s objectives, timelines and feasibility.

The lender will forward the application to CMHC for review and approval. Once approved by CMHC, the lender can proceed with providing financing for the project.

CMHC Rental Construction is available to qualified developers who meet all of the eligibility criteria. To learn more about the program and how to apply, please contact us here, and we’ll have our construction rental initiative representative give you more information

The Rental Construction initiative helps to ensure an adequate supply of rental housing for middle-market renters across Canada. It also supports 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. With its low-cost financing, the initiative provides an attractive opportunity for developers to build purpose-built rental housing in CMAs and large urban centers.

To be eligible for the CMHC Rental Construction Financing initiative, developers must meet certain criteria which include:

  • The project must have more than 5 rental units.
  • The project must be located in a census metropolitan area or large urban center.
  • The developer must have appropriate experience in constructing and managing similar projects to ensure successful completion.
  • The developer must demonstrate that the project is financially viable and meets CMHC’s underwriting standards.
  • Any existing mortgage loans on the project must be refinanced through a CMHC insured mortgage loan.
  • The rental units must meet CMHC’s minimum quality standards and requirements for energy efficiency.
  • The project must meet the provincial or territorial building codes.
  • Minimum 20% of the units must perform affordable housing with affordability of 30% below the median total income of families in the location area
  • The proposal must be approved under the affordable housing program or initiative from any government level.

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.

These projects are intended for middle-market renters. That are for projects with more than 5 rental units and are located in census metropolitan areas or large urban centers.

The CMHC Rental Construction Financing initiative supports the construction of new rental housing units by providing low-cost financing to qualified developers. The program is designed 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.

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CMHC Rental Construction initiative Financing

Integrum Mortgage Was A Key Point In Our Rental Construction

We were able to build a 207 unit rental apartments for middle and low income Canadians. The Process was smooth and easy, we qualified for 91% financing through Integrum Mortgage with the rental homes initiative. I would absolutely recommend their services.

Josh L

Developer

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