Preconstruction loans
Stream 1

• 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)

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.

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:

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.

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

• Product highlight sheet (PDF)
• Application form (PDF)
• Integrity declaration form (PDF)

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.