Mortgage Loan Insurance: Retirement Homes 

CMHC mortgage insurance offers flexible tools to help developers build, buy or refinance a retirement home for seniors. This includes financing options like: 

  • higher loan-to-value ratios 
  • loan advances up to 70% of the lending value during construction 
  • lower debt coverage ratios 
  • preferred interest rates 
  • amortization periods up to 40 years

IS YOUR PROJECT ELIGIBLE?

Our flexibilities are available for first, second and pari passu mortgages on any eligible retirement home. To be eligible, your project must: 

  • have at least 50 units or beds (with 75% or more being single or private occupancy) 
  • provide housing for seniors who need minimal to moderate care to live independently 
  • be at least 70% residential in terms of both floor area and the total loan value
  • have a maximum loan-to-value ratio of 85% 

In addition, the borrower or co-borrower must have: 

  • at least 5 years’ experience owning and operating a similar facility, or
  • a long-term contract with a property management firm with this record of experience 

You must also have a net worth of at least 25% of the value of the loan. Plus, you must be able to guarantee 100% of the loan until you have 12 consecutive months of stable rents. 

AFFORDABLE HOUSING OPTIONS

ENERGY-EFFICIENT REFUNDS

FIND OUT MORE

For more details about our mortgage insurance tools, including:

You can:

Date Published: March 31, 2018