Shared equity mortgages (SEM) Stream 2

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

Maximum Loan Amount
The maximum loan amount per proponent/borrower per year is $5 million. CMHC may consider a higher amount on an exception basis.

Maximum Loan Term
5 or 10-year renewable loan term. Maximum 25-year amortization.

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

Prepayment Options
Partial principal repayment will be required without penalty, as homebuyers repay SEM mortgages, to be remitted to CMHC on a quarterly basis.

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 the shared equity mortgages offered will be made available to homebuyers who meet the following criteria:

• Provide a minimum 5% down payment from their own resources
• Meet the definition of a first-time homebuyer under the Government of Canada Home Buyers’ Plan, which includes the dissolution of a marital or common law relationship (at least one of the homebuyers)
• CMHC’s preference is for the first mortgages to be with a lender approved by CMHC under the National Housing Act for mortgage loan insurance. CMHC may consider exceptions on a case-by-case basis taking into consideration the proposal, business model and loan security.

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.