Eligible borrowers
Individuals who are Canadian citizens, permanent residents of Canada, or non-permanent residents who are legally authorized to work in Canada.
Loan-to-value (LTV) ratios
For homeowner loans (owner-occupied properties), the loan-to-value ratio (LTV) for 1 to 2 units is up to 95% LTV. For 3 to 4 units, the ratio is up to 90% LTV. The LTV must be greater than 80%.
Minimum equity requirements
For homeowner loans, the minimum equity requirement for:
- 1 to 2 units is 5% of the first $500,000 of lending value and 10% of the remainder of the lending value
- 3 to 4 units, the minimum equity requirement is 10%
Purchase price / lending value, amortization and location
The maximum purchase price / lending value or as-improved property value must be below $1,000,000.
For homeowner loans, CMHC-insured financing is available for one property per borrower/co-borrower at any given time.
The maximum amortization period is 30 years.
The property must be located in Canada and must be suitable and available for full-time, year-round occupancy. The property must also have year-round access (via a vehicular bridge or ferry if it is on an island).
Down payments
The down payment can come from sources such as savings, the sale of a property, or a non-repayable financial gift from a relative.
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
The maximum threshold is a gross debt service (GDS) ratio of 39% and a total debt service (TDS) ratio of 44%.
Interest rates
The GDS and TDS ratios must be calculated using an interest rate which is the greater of the contract interest rate plus 2%, or 5.25%.
Advancing options
Single advances include improvement costs less than or equal to 10% of the as-improved value.
Progress advances include new construction financing or improvement costs greater than 10% of the as-improved value.
With Full Service, CMHC validates up to 4 consecutive advances at no cost. For Basic Service, the Lender validates advances without pre-approval from CMHC.
Non-permanent residents (homeowner loans only)
Non-permanent residents must be legally authorized to work in Canada (for example, a work permit). Mortgage loan insurance is available for 1- to 4-unit properties. At least 1 housing unit must be owner-occupied. The purchase must not be subject to any prohibition under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
In cases where a credit report from a Canadian credit reporting agency is not available, we may consider:
- an international credit report
- a letter of reference from the borrower’s financial institution in their country of origin
- other alternative methods of establishing creditworthiness