1. PRELIMINARY REVIEW (YOU WILL HEAR FROM US WITHIN 14 DAYS FROM
SUBMISSION)
Applications are reviewed for readiness, eligibility and completion.
2. FINANCIAL ANALYSIS/CREDIT RISK ASSESSMENT (APPROXIMATELY 30-120 DAYS
FROM YOUR APPLICATION SUBMISSION)
Credit risk assessment of your application takes time. Selected, eligible
applications are assessed based on:
- financial viability
- minimum requirements
- details of the socio-economic outcomes in your project
- local community need
- available funding
Provinces and territories also provide input and concurrence on projects in
their jurisdiction.
3. LETTER OF INTENT
Successful applicants will receive a letter of intent confirming CMHC’s
conditional offer based on the assessment up to that point.
The letter of intent generally includes details of:
- loan amounts
- conditions to funding
- details of the socio economic outcomes in your project
- list of security required by CMHC to secure the loan obligations
Security documents may include but are not limited to :
- mortgage security
- ministerial loan guarantee
- assignments of rents and leases
- material contracts and insurance
- where applicable, guarantees, and/or inter-creditor agreements
You will have approximately 60 days to satisfy the conditions listed in the
letter of intent.
Your application will go through a final approval process once you provide all
required documentation.
Failure to satisfy conditions within the set timeframe may lead to a
cancellation of the application.
4. FUNDING AGREEMENT/LOAN DOCUMENTS
Upon final approval by CMHC, we will then prepare your package of loan
documents, typically within 40 days. Timing is dependent on the complexity of
your application.
The funding agreement will detail items such as:
- interest rate
- the advancing mechanics
- security for the loans
- reporting requirements
-
standard terms and conditions, among other terms, including those specific
to your project
You have 30 days to accept and return the signed loan documents to CMHC.
The loan package contains several documents that will generally include:
- funding agreement
- operating agreement
- assignment of rents and leases
- general security agreement
- mortgage charge terms
- contractor’s acknowledgment
- assignment of insurance
5. FIRST ADVANCE
The fully executed loan agreement between CMHC and the successful applicant
will contain a drawdown schedule.
The drawdown schedule itemizes when and in what amount funds are expected to
be advanced against CMHC repayable and forgivable loans.
You must satisfy all conditions required prior to initial funding. At both
initial funding and at the time of each subsequent funding, you must submit a
draw request to CMHC, along with:
-
a current project status report prepared by your Quantity Surveyor/Cost
Consultant
- the drawdown notice
- the project status certificate
- the project consultant’s certificate
- a notarized CCDC statutory declaration
-
any other documentation that CMHC may deem necessary – all of which are
specified in the loan agreement
Required documentation must be provided 10 days before each draw down date.
Your specialist will let you know if other documents are required.