Mortgage Loan Insurance: Single Room Occupancy 

CMHC mortgage insurance offers flexible tools to build, buy or refinance single private rooms in multiple tenant buildings. This includes financing options like:

  • higher loan-to-value ratios
  • loan advances up to 75% 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 single room occupancy project. To be eligible, your project must: 

  • have at least 5 units of short- or long-term housing 
  • provide single private rooms in a multiple tenant building 
  • offer access to shared bathrooms (and sometimes a shared kitchen) 
  • 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: 

  • proven competence in single room occupancy projects 
  • 5+ years’ experience with a similar property (or a property management firm with this record) 
  • a net worth of at least 25% of the value of the loan 
  • the capacity to cover a full year at 100% vacancy (for new construction) 
  • the ability to guarantee 100% of the loan until you have 12 consecutive months of stable rents 

AFFORDABLE HOUSING OPTIONS

ENERGY-EFFICIENT REFUNDS

FIND OUT MORE

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Date Published: March 31, 2018