CMHC Income Property

Financing options for investors purchasing a rental property

Opening the Door to a Range of Financing Options for Investors in All Markets

CMHC Income Property is a mortgage loan insurance product for 2-to-4-unit rental properties. It provides investors with more housing finance choice when purchasing a rental property.

CMHC Income Property Details

CMHC Income Property offers flexible debt service qualification options.

  • Borrowers
    Canadian citizens, permanent residents, self-employed borrowers and corporate borrowers (with a personal guarantee or co-borrower).
  • Property Type
    2-to-4-unit rental properties that are non-owner occupied.
  • Income Qualification
    Use up to 50% of gross rental income or a net rental income approach to determine debt service qualification.

Flexible debt service qualification

Up to 50% gross rental income or a net rental income approach may be used to determine debt service qualification.

Gross rental income

Up to 50% of the gross rental income for the subject property may be included. Taxes and heat for the property can be excluded from the GDS and TDS ratios.

PITH* + Other Debt
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Borrower’s Gross Annual Income

*PITH means principal, interest, property taxes and heat costs.

Net rental income approach

Lenders may use their own internal guidelines for determining net rental income (gross rents minus operating expenses) for the subject property and other residential investment properties. Any portion of heat payments that the tenant pays can be excluded.

Learn more about the different approaches to calculate rental income.

Premium Information

Below are the premium rates for borrowers insured through CMHC Income Property. The application premiums are a one-time charge which may be added to the insured loan amount.

Premium Schedule for Small Rental Loans (For Non-Owner-Occupied Property With 2 to 4 Units)

Loan-to-Value Ratio Premium on Total Loan Amount
Up to and including 65% 1.45%
65.01% to 75% 2.00%
75.01% to 80% 2.90%

CMHC Income Property Resources

Guiding smart homebuying choices with a variety of financial planning tools.

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Use these calculators to help your clients in their home purchase planning.

Help Your Clients Save With CMHC's Eco Products!

When homebuyers purchase energy-efficient homes, they may be eligible for a 25% partial refund on their insurance premium through CMHC’s Eco Products.

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Get in Touch

Our Homeowner Underwriting Centre is backed by our dedicated team of professionals to provide mortgage loan, policy and application information.

Call us at 1-888-Go-emili
(1-888-463-6454)

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Disclaimer

This material is a quick reference tool for CMHC’s common Mortgage Loan Insurance. Additional conditions may apply.

This information is subject to change at any time. Please verify with CMHC that you have the most up-to-date information before the loan is processed.