ADVANTAGE OF OUR ‘APPROVED LENDER’ STATUS:

Canadian Mortgage Capital Corporation is a "CMHC Approved Lender" which is a very unusual feature for a mortgage brokerage company and reflects our large volume of mortgage business and our underwriting expertise in structuring loan proposals. As a "CMHC Approved Lender" we work directly with CMHC to structure the loan proposal in a way that maximizes the benefit to our client. CMHC will issue a Certificate of Insurance in our name, which we can then market to lenders without having to rely upon another financial institution to negotiate important terms and conditions with CMHC (i.e. loan amount, amortization period, term etc…).

ELIGIBLE TYPES OF REAL ESTATE:

CMHC underwrites the following types of real estate:

• apartments
• nursing homes
• retirement homes
• mixed-use (residential with commercial space)
• new housing, including rental housing
• new condominium developments

ADVANTAGES OF A CMHC INSURED MORTGAGE:

The advantages of having our company insure your mortgage with CMHC are considerable:

• interest rates on the mortgage can be significantly lower than on a conventional mortgage
• the terms available are 5 to 20 years
• leverage, typically limited to 75% of the property value conventionally, is available up to 85% (see "maximum loan-to-value" below)
• longer amortization periods than are typical of conventional financing are available (minimum of 25 years), thereby reducing monthly mortgage payments
• the availability of CMHC-insured financing is generally less sensitive to economic fluctuations

CMHC UNDERWRITNG CRITERIA ON EXISTING RENTAL PROPERTIES
(how CMHC determines the loan amount for your building)

 The basic underwriting parameters are outlined below:

Maximum loan to value	-	85%
Maximum amortization	-	up to 40 years (normally 25 years)
Minimum initial term	-	5 years (sometimes less)
Minimum Debt Service	-	1.30:1 if term is less than 10 years 1.20:1 if term is 10 years or greater
Non-recourse Financing	-	for mortgages up to a maximum of 60% of value
Recourse Financing	-	only for mortgages over 60% of value limited guarantees range from 2% up to a maximum of 50.0% of the loan amount (for 85.0% loan to value applications only)

COST OF CMHC INSURANCE:

The cost of insuring your mortgage with CMHC varies according to the loan to value, but there are two types of costs:

• Application Fee - this fee is equal to $150/unit on the first 100 units and $100/unit thereafter. The maximum possible fee is $50,000. This fee is due up front (or shortly after an initial assessment), but ultimately is added to the loan amount.
• Mortgage Insurance Premium - this fee varies from 1.75% to as high as 5.50% of the loan amount (for nursing homes and retirement homes). The fee is added to the loan amount at the time of funding.

If you would like us to analyze your property on a preliminary basis (free of charge) to establish the maximum mortgage amount which can be obtained through CMHC, then click here.

If you would like to contact us or ask questions then click here.