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 post-secondary educational institutions, 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 student housing
• 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
• must 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 loan initiation, rents for all units or beds must be comparable to existing on-campus student housing in the local market, considering project details.
• If existing on-campus student housing projects aren’t suitable comparables, the required appraisal or market study (pdf) must show how the project and rents meet student needs and ensure project viability and marketability.
• As a general guideline, proposed base rents should not exceed the lower end of the local rental market for comparable projects.
• CMHC will assess the reasonability and acceptability of the proposed base rents as part of application and underwriting process.
• Any comparables used must reflect unfurnished units or bedrooms or show recommended adjustments.

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 student housing project.

Rent increases

• Rent increases must be capped for a minimum of 10 years from authorized first occupancy (referred to as the affordability period).

Refer to the Program Highlight Sheet (PDF) for more information.

Location

On-campus:

• self-contained and non-self-contained units are eligible
• no maximum number of bedrooms for self-contained units

Off-campus:

• only self-contained units are eligible
• maximum of 4 bedrooms per unit
• must be conveniently serviced by public transportation or within walking distance to campus

Note: For off-campus projects, a post-secondary educational institution must be involved. This may include:

• developing or managing the project
• providing capital or operating funding
• leasing units
• offering student tenant selection services

• Program Highlight Sheet (PDF)
• Required Documentation Checklist (PDF)
• Project Assessment Workbook (Excel)
• Energy Efficiency Criteria Attestation (PDF)
• Accessibility Criteria Attestation (PDF)
• Integrity Declaration (PDF)
• Student Housing Market Study At-a-Glance (PDF)

IMPORTANT

Please refer to the Required Documentation Checklist (PDF) to provide all necessary documents with your application.