The Shared Equity Mortgage Provider (SEMP) Fund program helps eligible Canadians achieve affordable home ownership.

This $100-million lending fund assists shared equity mortgage providers that offer an alternative homeownership model. The Fund will help attract new providers of shared equity mortgages and encourage additional housing supply. The Shared Equity Mortgage Provider Fund is a 5-year program to be launched on July 31, 2019.

The program will offer eligible proponents loans from two possible funding streams:

Stream 1 – Preconstruction
Preconstruction costs to commence new housing projects that provide shared equity mortgages to home purchasers.

Stream 2 – Shared Equity Mortgages (SEM)
Funding of shared equity mortgages provided by the proponent directly to home purchasers.

Note: No stacking is permitted between Stream 1 and Stream 2 under the SEMP Fund. In addition, where there is more demand than available funding, CMHC may prioritize eligible applications to determine where commitments will be made.

eligibility

Eligible proponents must be:

  • Non-profit organizations (public or private)
  • Government (municipal, provincial, territorial)
  • Indigenous governments or organizations
  • For-profit organizations (private sector)

All proponents will be required to demonstrate their capacity to administer their proposal. CMHC may prioritize non-profit and government providers before for-profit.

loan details

Stream 1 – Pre-construction

Criteria
Proponents must ensure funds are used toward preconstruction costs for the development of projects where shared equity mortgages will be made available to home purchasers who have at least a 5% down payment from their own resources.

A proponent’s commitment to reserving a certain percentage for first-time homebuyers will be considered a strength on the application

Maximum loan amount
The maximum loan amount per project is $4 million.

Maximum Loan Term
The maximum loan term is 5 years. CMHC has the authority to grant exceptions where appropriate.

Interest Rate
A nominal interest rate will be charged on every loan.

 

Stream 2 – Shared Equity Mortgages

Criteria
Proponents must ensure funds are used to make shared equity mortgages available to purchasers who meet the following criteria:

  • At least one of the borrowers must be a first-time home buyer as defined under the Government of Canada’s Home Buyers’ Plan, which includes marital breakdown
  • The borrower must have a 5% down payment from their own resources

Maximum loan amount
The maximum loan amount per proponent/borrower per year is $5 million.

Maximum Loan Term
The maximum loan term is 26 years.

Interest Rate
A nominal interest rate will be charged on every loan.

contact

General inquiries about the National Housing Strategy or technical support

Phone: 1-800-668-2642 (Business hours: 7:30 a.m. to 7:30 p.m. Eastern Time)

Email: contactcentre@cmhc.ca.

Mailing address:

Canada Mortgage and Housing Corporation
Attention: Shared Equity Mortgage Providers Fund
700 Montreal Road
Ottawa, Ontario
K1A 0P7