MCAP Blog

On November 15, 2024, the Canada Mortgage and Housing Corporation (CMHC) implemented changes to its multi-residential construction financing program requirements, to areas such as appraisals, accessibility criteria and environmental site contamination polices, to name a few. Another area that received an update and may be of particular interest to borrowers, developers and investors is construction bonding. In this blog, we’ll explain what construction bonding is, the new requirements and what this means for borrowers.

For those in construction development, whether a small-scale build or a large-scale project, it is important to understand the significance of construction liens and the role of holdbacks. Ensuring everyone involved in a project is paid promptly is an integral part of a successful project which is why it’s important to know how these two aspects come into play.

As the lending landscape in Canada continues to evolve, it’s important for borrowers to stay informed of any changes in the Canada Mortgage and Housing Corporation’s (CMHC) application requirements to avoid delays or issues with their applications. Last fall, the CMHC announced changes to their multi-unit applications that will impact those applying for funding. One of those changes relates to the submission of operating cost invoices. Let’s take a look at what this change means and how it will affect multi-unit applications going forward.

Introduced in March of 2022, the Canada Mortgage and Housing Corporation (CMHC) MLI Select program offers commercial developers a mortgage loan insurance product focused on affordability, accessibility, and climate compatibility. The goal of this government-backed initiative is to promote investment in affordable housing for Canadians – something that is needed in the current housing and rental market. For developers, the benefits of using MLI Select include access to reduced premiums, reduced debt service coverage and longer amortization periods, and improved affordability during construction. Existing property owners can also access the program based on program criteria.

Buildings are a significant source of energy consumption and greenhouse gas (GHG) emissions in Canada. In fact, Canada's homes and buildings account for 13% of national GHG emissions. Introducing more energy efficiency when developing new or retrofitting buildings can help address climate change in a meaningful way – plus increased energy efficiency can provide other advantages for builders, owners and tenants.