The loan offers:

Favourable terms

• A 10-year term (closed to pre-payment) and a fixed interest rate locked in at first advance for certainty during the riskiest periods of development.
• Up to a 50-year amortization period.
• Up to 100% loan to cost for residential space and up to 75% loan to cost for non-residential space (depending on the strength of the application).

Low costs

• Interest-only payments financed by the loan during construction through to occupancy permit.
• Principal and interest payments are due after 12 months of stabilized effective gross income.

Access to CMHC mortgage loan insurance

• CMHC mortgage loan insurance that is effective from first draw and for the duration of the amortization period to simplify loan renewal. The borrower does not pay the premium, only the PST if applicable.

Eligible borrowers include for-profit developers, non-profit developers and municipalities.

All projects must:

• have at least 5 rental units
• have a loan size of at least $1 million
• respond to a need for rental supply
• meet the minimum documentation requirements
• first construction draw must occur within 6 months of date of the executed loan agreement
• meet minimum financial viability and social outcome requirements described below:
• Financial Viability: You must have the financial and operational ability to carry the project without ongoing subsidies and the ability to meet debt coverage ratio requirements.
• Affordability: You must meet and maintain one of the following affordability requirements for at least 10 years:
  • 1: At least 20% of units must have rents below 30% of the median total income of all families for the area.
  • 2: The proposal has been approved under another affordable housing program or initiative from any level of government, such as capital grants, municipal concessions or expedited planning processing.
• Energy efficiency: Projects must be a minimum of 15% more efficient in energy consumption and greenhouse gas (GHG) emissions than the applicable reference model building code:
  • Low-rise multi-unit buildings under Part 9 of the National Building Code of Canada (NBC) must demonstrate a minimum 15% improvement over the 2015 NBC.
  • All buildings under Part 3 of the National Building Code must demonstrate a minimum 15% improvement over the 2017 National Energy Code of Canada for Buildings (NECB).
• Accessibility requirements: At least 10% of the project’s units must meet or exceed accessibility standards as regulated by local codes.

CMHC's Frequent Builder framework is designed to accelerate the construction of affordable rental homes by expediting the application process for established housing providers working with CMHC that have a proven track record in delivering projects, making the process easier and faster.

Frequent Builder benefits

As an approved Frequent Builder, you could gain advantages that streamline interactions and processes for selected CMHC projects, like these operational benefits:

• priority assignment of CMHC resources and expedited loan approvals
• underwriting and advancing flexibilities
• conditional funding approval provided for future funding years

Eligibility requirements

To be eligible, CMHC will assess you on your:

• financial strength: demonstrated through satisfactory credit assessment by CMHC
• operational capacity: with no default within last 10 years
• proven track record in delivering projects

For-profit organizations

For-Profit entities must have conducted a minimum of $50 million* of business with CMHC** and fulfill 3 of the following criteria based on the latest CMHC credit assessment:

• own more than $1 billion of multi-residential assets
• have a minimum net worth value of $250 million
• have a 1.30 debt coverage ratio within their multi-residential portfolio
• have more than $500 million of effective outstanding exposure (insurance and lending) with CMHC

*If the for-profit entity has not met the criterion of having at least $500 million, but has met the other 3 criteria, they must also have a minimum of $50 million of business with CMHC.

Governmental organizations

Provinces, territories, municipalities, Indigenous governing bodies and other levels of government require a minimum level of business of $20 million with CMHC.**

Non-profit organizations, registered charities and co-operative housing organizations

For non-profit organizations, registered charities and co-operative housing corporations, CMHC will also consider clients who meet one of these requirements: have a minimum of $50 million of business with CMHC or have a minimum of $20 million of business with CMHC** and manage a large portfolio of rental housing units.

Frequent Builder status

To achieve Frequent Builder status, you are required to undergo a credit assessment and provide CMHC with annual audited financial statements. Government entities are exempt from the credit assessment.

For more information about the Frequent Builder framework, contact our Contact Centre or reach out to your CMHC specialist.

**Loans must be linked to one of the following programs:

• a National Housing Strategy program
• the Canada Greener Affordable Housing Program
• the Non-Profit On-Reserve Housing Program (section 95)
• mortgage loan insurance for multi-unit buildings
• bilateral agreements signed as part of the National Housing Strategy