The loan offers:

Favorable Terms

• a 10-year term (closed to pre-payment) and a fixed interest rate locked in at first advance for certainty during the most risky periods of development
• up to a 50-year amortization period
• up to 100% loan to cost for residential space and up to 75% loan to cost for non-residential space (depending on the strength of the application)

Low costs

• interest only payments financed by the loan during construction through to occupancy permit
• principal and interest payments are due after 12 months of stabilized effective gross income

Access to CMHC Mortgage Loan Insurance

• CMHC mortgage loan insurance that is effective from first draw and for the duration of the amortization period to simplify loan renewal. The borrower does not pay the premium, only the PST if applicable

Eligible borrowers include for-profit developers, non-profit developers and municipalities.

All projects must

• have at least 5 rental units
• have a loan size of at least $1 million
• respond to a need for rental supply
• have zoning in place, a site plan in process with municipality and a building permit available. The first construction draw must be within 6 months of date of the executed loan agreement
• meet minimum financial viability and social outcome requirements described below
• Meet minimum requirements (Key highlights) :
• Financial Viability: You must have the financial and operational ability to carry the project without ongoing subsidies and ability to meet debt coverage ratio requirements.
• Affordability: You must meet one of the following affordability requirements and it should be maintained for at least 10 years.
  • A: At least 20% of units must have rents below 30% of the median total income of all families for the area, and the total residential rental income must be at least 10% below its gross achievable residential income.
  • B: The proposal has been approved under another affordable housing program or initiative from any government level, such as capital grants, municipal concessions or expedited planning processing.
• Energy efficiency: Projects must be a minimum of 15% more efficient in energy consumption and GHG emissions than the applicable reference model building code:
  • Low-rise multi-unit buildings under Part 9 of the National Building code must demonstrate a minimum 15% improvement over the 2015 NBC.
  • All buildings under Part 3 on the National Building code must demonstrate a minimum 15% improvement over the 2017 NECB.
• Accessibility requirements: At least 10% of the project’s units must meet or exceed accessibility standards as regulated by local codes.