Timelines are approximations and will depend on the complexity and completeness of the application.

Application Steps:

This process takes time. To speed up your application, be prepared to submit specific documents throughout the process. Inability to provide the outlined documents at each stage of the process will inhibit progression of the file and may result in withdrawal of the submission.

Refer to the Required Documentation Checklist (PDF) 

Projects must have support from another level of government (such as municipalities, provinces and/or territories, Indigenous government) to ensure a coordination of investments. Support can be in the form of investment of resources but could also be in the form of a letter stating endorsement for the project.

Organizational Requirements

The Affordable Housing Fund – New Construction Stream is open to:

• community housing providers (i.e. public or private non-profit housing organizations or rental co-operatives)
• municipalities
• provinces and territories
• Indigenous governments and organizations
• private sector

Project Requirements

We consider the following projects for funding:

• community and affordable housing
• urban Indigenous community housing
• mixed use market / affordable rental
• new construction and/or conversion from a non-residential use to affordable multi-residential
• shelters
• transitional and supportive housing

All projects must:

• have a minimum of 5 units/beds
• have primary use as residential
• meet minimum requirements for partnerships, financial viability (XLS), affordability (PDF), energy efficiency (PDF) and accessibility (PDF) 

Prioritization of applications

We prioritize applications based on:

• the achievement of National Housing Strategy outcomes
• provincial and territorial input
• affordability
• energy efficiency
• accessibility
• proximity to transit, amenities and community supports
• collaboration/partnerships
• social inclusion
• supporting federal priority groups

We give higher scores to applications that exceed minimum requirements.

Considerations for Indigenous and Northern Housing Solutions clients
In addition to a Ministerial Loan Guarantee (MLG), CMHC is now accepting 4 additional alternative types of security for projects on First Nation lands.

Considerations for municipalities
In instances where municipalities are unable to provide the required forms of mortgage security, debentures may be considered as an alternative, on a case-by-case basis.

There are several possible repayable loan and/or forgivable loan combinations.

There is:

• $5.19 billion available through low-cost repayable loans over 10 years
• $2.26 billion available through forgivable loan over 10 years

Low-interest repayable loans will be available for up to 20 years to fund projects demonstrating financial viability and long-term affordability.

Repayable loan: a form of loan that is to be repaid monthly within a specific time frame.

Forgivable loan: a form of loan that could be forgiven if you meet program criteria and targets.

Each repayable loan offers:

• A 10-year term (closed to pre-payment) with a fixed interest rate locked in at first advance. The term will be renewable for another 10 years and the interest rate will reset when renewed.
• Up to a 50-year amortization for smaller monthly payments and long-term viability.
• Up to 95% loan-to-cost for residential space and up to 75% loan to cost for non-residential space. There is up to 75% loan to cost (residential) for municipalities, provinces, territories and private sector.
• Interest-only payments until loan is fully advanced.

We consider repayable loans first. Forgivable loans may be available in addition to a repayable loan in the following circumstances:

• additional funding for higher performing projects to offset higher costs of meeting or exceeding minimum requirements
• where cash flow is insufficient and a forgivable loan is needed to attain break-even cash flow

For Application Step number 4 only

PRO TIP! The loan package will generally also include:

• Operating Agreement: a stand-alone agreement with the borrower that extends beyond the term of the loan agreement to ensure they continue to meet CMHC’s required social outcomes (affordability, energy efficiency and accessibility).
• Assignment of Rents and Leases: security interest in all of the interest of the borrowers in any leases or occupancy rights now or hereafter affecting the whole or any part of the project.
• General Security Agreement (GSA): secures all inventory, equipment, and any other personal property arising from the property and allows for remedies in the event of default. Also known as the Movable Hypothec in Quebec.
• Mortgage Charge Terms: sets out the mortgage terms to be registered on title. Also known as the Immovable Hypothec in Quebec.
• Contractors Acknowledgment: this is signed by the Contractor acknowledging they are aware the borrower has assigned their contract to CMHC.
• Assignment of Insurance: assigns insurance proceeds to CMHC.
• Officers Certificate and Directors Resolution: confirms the borrower’s legal and financial status and their authority to borrow from CMHC.

Note: the above list is not exhaustive and other documents may be required to address the specifics of the particular project(s).