CMHC changes rental loan program

April 27, 2017 | Posted by: UBU Financial

CMHC Changes Multi-Unit Rental Mortgage Loan Insurance Program:

CMHC multi-unit mortgage loan insurance, which is for properties of 5 or more units, accounted for approximately 12% of its overall insurance-in-force. The changes apply to these residential properties including standard apartments, student housing, single room occupancy (SRO) projects, retirement homes, and supportive housing projects will take effect on May 15, 2017.


  • More flexibility: CMHC will now entertain alternative factors when determining the need for personal guarantees, including corporate guarantees, equity retention, replacement reserves, collateral security, etc.
  • Standardized guarantee percentage: for existing rental properties, CMHC now requires only 40% guarantee of the outstanding loan amount owing under the mortgage; for construction loans, the guarantee amount is 100% until the borrower achieves stabilized rents, at which time the guarantee decreases to 40% of the outstanding loan amount.
  • Non-recourse threshold: the limit for a non-recourse loan has increased to 65% loan to value (up from 60%).


  • Permitted non-residential space: the maximum threshold for permitted non-residential space has been increased to 30% (up from 20%).
  • Consideration of bulk lease revenue: the revenue garnered as a result of a bulk lease for a portion of the residential units will now be considered, where such arrangement is directly in support of affordable housing, housing in the North, housing for students or housing for vulnerable groups.
  • Consideration of furnished suites: furnished suites may now be considered, where the units are intended for long-term occupancy.
  • Retirement Homes and Student Housing: CMHC may now consider amortization periods of up to 40 years for these property types.

Premium Structure:

  • Amended for new construction and affordable housing premiums, Slight changes for existing rental properties with loans between 70 – 75% loan to value.

CMHC has also implemented additional policies for rental achievement requirements for new construction, second mortgage maturity requirements, as well as new policies to simplify its affordable housing requirements.

Additional details will be posted as information becomes available.

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