CMHC Income Property

Eligible borrowers

Individuals must be Canadian citizens or permanent residents of Canada.

Loan-to-value (LTV) ratios

Loan-to-value (LTV) ratios measure the ratio of a loan amount to the appraised value of the property, expressed as a percentage.

For small rental loans (non-owner occupied):

• 2 to 4 units: Up to 80% LTV

Minimum equity requirements

For small rental loans:

• Minimum equity requirement is 20%.

Purchase price / lending value, amortization and location

• Maximum purchase price / lending value or as-improved property value must be below $1,000,000.
• Maximum amortization period is 25 years.
• Property must be in Canada, suitable and available for full-time, year-round occupancy, and must have year-round access (via a vehicular bridge or ferry if on an island).

Down payments

Down payments can come from sources such as savings, the sale of a property or a non-repayable financial gift from a relative.

Rental income

We offer different approaches to rental income for qualification purposes, whether the property is owner-occupied or non-owner-occupied and regardless of its MLI application status.

Find out more about the approach(es) that can be used to calculate rental income and the inputs to consider when calculating the debt service ratios.

Creditworthiness

• At least one borrower (or guarantor) must have a minimum credit score of 600.
• CMHC may consider alternative methods of establishing creditworthiness for borrowers without a credit history.

Debt service ratios

Maximum thresholds:

• Gross Debt Service (GDS) Ratio: 39%
• Total Debt Service (TDS) Ratio: 44%

Interest Rates

GDS & TDS Ratios must be calculated using an interest rate that is the greater of the contract interest rate plus 2%, or 5.25%.

Advancing options

• Single advances: Improvement costs less than or equal to 10% of the as-improved value.
• Progress advances: New construction financing or improvement costs greater than 10% of the as-improved value.
• Full Service: CMHC validates up to 4 consecutive advances at no cost.
• Basic Service: Lender validates advances without pre-approval from CMHC.