Modular Rental Housing Construction

Modular construction can be used for any of CMHC’s mortgage loan insurance products. Learn more about CMHC’s multi-unit products.

To be eligible, your project must:

• have at least 5 rental units, or 50 beds in the case of retirement homes
• be at least 70% residential in terms of both floor area and the total lending value
• have a maximum loan-to-value ratio of 85%; a loan-to- cost ratio of 95% may be available with MLI Select

In addition, the borrower must have:

• proven experience managing a property of a similar size and type
• a minimum of 5 years' experience in multi-unit property management (or a property manager with this record)
• a net worth of at least 25% of the loan amount
• the ability to guarantee 100% of the loan until the project has 12 consecutive months of stable rents

Bonding

For modular construction projects, CMHC requires appropriate bonding to be in place before authorizing advances during construction.

Additional information about CMHC multi-unit mortgage loan insurance, including:

• application fees and premiums
• required documentation