CMCC 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…).

CMHC is active in insuring construction financing on large multi-residential developments. The advantage to a borrower is a significantly reduced cost of borrowing. CMHC will insure the following types of construction loans:

   High-rise & mid-rise condominiums
   Freehold properties (single family home developments, townhouses etc.)
   Apartments/condominiums to be built for rental purposes
   Retirement & Nursing home developments
   Mixed use property development, where the residential component represents at least 80% of the overall project.
Student housing developments.

In aggregate, we have structured almost $1 billion and some of the largest CMHC-insured construction loans. The senior partners at CMCC have extensive construction lending experience, both in structuring loans with traditional lenders (on a conventional basis) and with CMHC (on an insured basis).

Financing Terms Available:

Interest Rate & Fees the interest rate, which can be obtained from a lender on a CMHC-insured deal, will be well below conventional rates.
Loan Amount the loan amount is limited to (i) 75% of the total sales value of the units being sold, (ii) a percentage of the value of the development at full lease-up (if a rental project), or (iii) a maximum of 85% of total costs
Presales Level for Condominiums the presales threshold for a condominium project is generally 50%-75% of total sales, depending on the quality of the project.
Underwriting
on New Rental Construction Loans
CMHC is the 'lender' of choice on new rental construction loans and retirement and nursing home developments. Traditional lenders have difficulty underwriting the high rental rates associated with new rental developments.

CMHC'S Fee Structure:

The fees are outlined below:

CMHC Application Fees - upfront fee of $200 per unit for the first 100 units and a fee of $150/unit for any additional amount.

CMHC Mortgage Insurance Premium (MIP) - a mortgage insurance premium, which is only paid on the amount of each draw. Please note that the 'loan to value' is calculated for residential condominiums based on the aggregate proceeds from sale to individual purchasers (and is not based on the project cost).

High-rise & mid-rise Condominiums Max. Loan to Value - Up to 75.0% of Loan to Value.

Mortgage Insurance Costs - 1.20% to 1.50% on the amount drawn.


New Rental Apartments* Max. Loan to Value - Up to 85% of Loan to Value

Mortgage Insurance Costs - 2.25% to 5.0% (increases as the loan to value escalates to 85%).


New Rental Retirement Nursing Homes* Max. Loan to Value - Up to 85% of Loan to Value

Mortgage Insurance Costs - 3.25% to 6.0% (increases as the loan to value escalates to 85%).


* Please note that for 'new rental' loans, the CMHC insurance policy is valid for both the construction period and for 25-40 years after completion.

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