The two most important advantages of a CMHC-insured mortgage

  1. CMHC mortgage insurance indemnifies the commercial mortgage lender involved from any financial loss in case of the borrower’s default on the property. Therefore this lender has virtually no risk of financial loss and consequently, the interest rate charged is substantially lower than any comparable conventional, uninsured risk, for example ranging from 1.00% to 2.00% lower on a typical uninsured property.
  2. Most people don’t realize this, but once the initial CMHC premium is paid, the property owner gets the lower insured mortgage rate, not only for the mortgage term, but for the entire amortization period of the mortgage, be that 25, 30, 35 or 40 years, with no additional costs. For example, if the initial mortgage has a 5 year term and a 35 year amortization, 6 months before the term’s expiry, the mortgage broker or the propery owner collects the Certificate of Insurance from the current lender and uses it to negotiate his new mortgage terms with other lenders of his choice.

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Commercial mortgages

Canada Housing and Mortgage Corporation (CMHC) Programs

Purchase or re-financing mortgages

Standard Rental Housing

Under this program, CMHC provides only the mortgage insurance by issuing a Certificate of Insurance, which is then used to secure a mortgage from an approved third party lender. Your project is eligible if it meets the following criteria:

  • Minimum of 5 residential rental units
  • Be at least 70% residential in terms of both floor area and the total loan value. The maximum 30% balances can consist of commercial rental units.
  • Have a maximum loan-to-value of 85% using CMHC’s valuation methodology
  • In addition, the Borrower must meet 2 operational experience and 2 financial requirements.

Affordable Rental Housing

  • Criteria is similiar to above

​Retirement and Supportive Housing

  • Criteria is similiar to above

Student Housing

  • Criteria is similiar to above

Single Room Occupancy

  • Criteria is similiar to above

Construction mortgages

CMHC RCFI Direct Lending Program; Rental Construction Financing Initiative

Funds are underwritten and loaned by CMHC as the Lender and serviced by CMLS. ​​This program is the most stringent process for approval but offers the greatest financial benefits and savings. Up to 100% Loan-to-Cost, 50 year amortization, no insurance premiums and a DCR of 1.10, with a 10 year term from start of construction and including the take-out mortgage. The interest rate is fixed or a hybrid (floating & fixed) the time of signing to cover CMHS’s cost of borrowing and individual project risks during the construction and lease-up phases of development.


Multi-family (minimum 5 units) residential mortgage insurance for AFFORDABLE rental construction and existing buildings up to 95% loan-to-cost, a maximum of 50 year amortization with a DCR of 1.10, including CMHC Fees, premiums and replacement reserve.

CMHC Market MLI – Multi-family (minimum 5 units) residential rental construction, purchase or refinance ​mortgage insurance up to the lesser of 85% Loan-to-Value or 100% Loan-to-Cost (construction mortgages only) with DCR’s of 1.30 for a term < 10 years and 1.20 for a term of 10 years +.

DISCLAIMER: The information displayed on this page could change without warning. To obtain up-to-the-minute rates, please Contact Mike at your earliest convenience.