Financing Solutions for Multi-Residential Properties

Approximately 30% of Canadians rely on rental housing to meet their accommodation needs – from students to seniors to those requiring affordable housing. MCAP and CMHC offer financing and loan insurance products to help builders and purchasers offer rental options to Canadians across the country.

If you’re building, purchasing, or refinancing a multi-residential property, CMHC and MCAP can help you access the financing you need.

Why consider CMHC for multi-family financing

CMHC is Canada’s only multi-residential mortgage insurer, offering a variety of loan insurance products for affordable and market rental housing. Here are some of the loan insurance products available.

	Affordable Housing CMHC affordable housing products offer extra flexibility to encourage the construction, preservation and improvement of affordable rental properties, such as higher loan-to-value (LTV) ratios, loan advances up to 95% of cost during construction and a minimum debt coverage as low as 1.10x. Up to 40 years amortization and a reduced insurance premium are added incentives to support affordable rental housing projects.
	Standard Market Rental For property owners and builders looking to offer standard multi-residential rental housing, CMHC offers financing options to meet your borrowing needs, including up to 85% LTV of the CMHC insurable value, loan advances up to 75% of the lending value during construction and minimum debt coverage ratio as low as 1.20x. With preferred interest rates compared to conventional financing and up to 40 years amortization, developers have the flexibility to build, buy and/or repair multi-unit projects.
	Retirement Housing As the senior population in Canada grows, the need for retirement housing continues to rise. CMHC offers mortgage loan insurance products to support the construction, maintenance and renovation of senior accommodation. Features of these products include up to 85% LTV of the CMHC insurable value, loan advances up to 70% of the lending value during construction and minimum debt coverage ratio as low as 1.40x. Preferred interest rates compared to conventional financing and up to 40 years amortization further enable borrowers to address this increasingly critical housing need.
	Student Housing For owners offering dedicated purpose built student housing, CMHC offers financing options that make it easier to build, buy or refinance student accommodation, including up to 85% LTV of the CMHC insurable value, loan advances up to 75% during construction, minimum debt coverage ratio as low as 1.30x, preferred interest rates and up to 40 years amortization.

Why MCAP is your best lending partner for CMHC insured financing

As Canada’s largest mortgage finance company, MCAP is a leading provider of CMHC insured lending programs. We have a dedicated team of specialists with a deep understanding of CMHC guidelines as well as a strong and well-established relationship with CMHC. Due to our high activity volumes across Canada, we are in constant communication with CMHC, which means we can provide the most up-to-date information and advice to our clients.

Acquiring a new multi-family asset? We have solutions

Bridge Program
If you need to access financing quickly and it’s not possible to secure CMHC insured financing in time for closing, MCAP can help with our short-term Bridge Program. This program offers timely underwriting to ensure a fast closing, flexible terms and the ability to secure a competitive rate for your long-term financing up front. Plus, while we are assisting you with your closing, we will apply for the CMHC Certificate of Insurance at the same time, which will ultimately replace your short-term bridge loan.

Conventional Financing
If insured financing is not for you, we can offer a variety of uninsured financing options, with terms ranging from one to five years. With flexible deal structuring to meet your needs, competitive pricing for all types of loans and timely underwriting to ensure quick closing, you can be sure that MCAP has your back when it comes to your financing needs.