There are two streams within the Shared Equity Mortgage Providers Fund. This is the Preconstruction Loans (Stream 1) for the development of new projects.

who can apply

  • Non-profit organizations (public or private)
  • Other levels of government (municipal, provincial, territorial)
  • Indigenous governments or organizations
  • For-profit organizations

(CMHC may prioritize non-profit and government providers before for-profit organizations)

loan details

Maximum Loan Amount
The maximum loan amount per project is $4,000,000.

Maximum Loan Term
A maximum loan term of 5 years. CMHC may permit repayment at the time the property is 100 percent complete on a case-by-case basis.

Interest Rate
Fixed or floating rate. Interest accrues from time of first advance to end of term.

Prepayment options
Closed to prepayment.

eligibility requirements

Preconstruction Activities
Requested financing must be used exclusively to cover the cost of eligible preconstruction activities, which include but are not limited to the following:

  • Needs assessment for project
  • Special purpose surveys
  • Preliminary financial feasibility
  • Business plans
  • Incorporation
  • Deposit for option to purchase land
  • Land purchase
  • Registration of security
  • Professional appraisal
  • Site surveys
  • Preliminary design
  • Project viability analysis (pro forma)
  • Planning fees (i.e. rezoning, development agreement costs)
  • Environmental site assessments
  • Geotechnical surveys (soil analysis)
  • Energy/accessibility modeling studies (cost benefit analyses)
  • Engineering studies (i.e. wind, shadow, and traffic impact analyses)
  • Project drawings and specifications
  • Construction cost estimates
  • Quantity survey
  • Contract documents
  • Development permits
  • Final viability analysis (pro forma)
  • Completion appraisal

Any costs incurred prior to the effective date of the loan agreement are not eligible.

Applicant Qualification
For qualification purposes, an applicant must demonstrate that:

  • It has the capacity to fulfil the loan repayment obligation
  • It is financially sound and has the requisite authority, experience, capability and resources to administer a shared equity mortgage program.

Criteria for the Recipients of Shared Equity Mortgages
Applicants must agree that shared equity mortgages related to the project will be provided to recipients who can satisfy a minimum 5% down payment from their own resources. A commitment to reserving a certain percentage of units for first-time homebuyers as defined by the Government of Canada’s Home Buyers’ Plan will be considered a strength on the application.

resources

The following resources are available to help you prepare your application:

Application process and timelines

CMHC will assess each application on its own merit, and in consideration of available funding. Applications will be assessed at the end of each monthly intake window, followed by underwriting and execution of agreements for successful applicants before funding can be advanced.

apply today

You must submit your application for funding through the secure online application portal. CMHC is committed to protecting the private information of applicants, and information entered into the portal is retained in a secure database. Once submitted, your application will no longer be editable.

It is your responsibility to ensure that all information provided is complete and accurate to the best of your ability. CMHC may, at any time in the review process, contact you for additional information and documentation.

Please carefully review and respond to all questions in the application form and ensure that you submit all supporting documentation. CMHC cannot process or consider your application if incomplete. To assist you, here is a checklist:

  1. Complete the application form (PDF)
  2. Complete and sign the integrity declaration (PDF)
  3. Register and upload all documents through the secure online application portal.

This program is unique and your proposal may not fully align with our application form. CMHC staff are open to hear your ideas and would be pleased to help you with completing your application! Contact your Affordable Housing Specialist to discuss if this funding opportunity aligns with your needs.

General inquiries or technical support:

  • Phone at 1-800-668-2642 during business hours from 8:00 a.m. to 7:00 p.m. (ET)
  • Email at contactcentre@cmhc.ca