Apartment Construction Loan Program: Standard Rental Housing

Loans through the program offer:

Favourable terms

• A fixed interest rate locked in at first advance for certainty during the riskiest periods of development.
• Qualify for up to a 50-year amortization period.
• Qualify for 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 and paid by the borrower from the occupancy permit until 12 consecutive months of stabilized effective gross income (stabilization).
• Principal and Interest payments: Paid by the borrower from stabilization to end of term.

Access to CMHC mortgage loan insurance

• CMHC mortgage loan insurance is an integrated feature of the program. The borrower does not pay the premium, only the PST if applicable.

Eligible borrowers include for-profit developers, non-profit developers and other levels of government.

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
• primary purpose of the project must be considered residential with the non-residential component not to exceed 30% of total gross floor space nor 30% of total cost
• be permanent in nature (long-term stay)
• meet the minimum documentation requirements

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:

Option 1: 

• At least 20% of units must have rents below 30% of the median total income of all families in the subject market.

Option 2:

• Alternatively, the requirement may be met if rents are established pursuant to an affordable housing program or other initiative (federal, provincial, territorial or municipal) that approves the proposal and provides support for the development of the standard rental housing project.

• Program Highlight Sheet (PDF)
• Required Documentation Checklist (PDF)
• Project Assessment Workbook (Excel)
• Energy Efficiency Criteria Attestation (PDF)
• Accessibility Criteria Attestation (PDF)
• Integrity Declaration (PDF)