Advantage of Our 'Approved Lender' Status:
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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 make the loan application in our own name which allows us to structure the loan proposal in a way that maximizes the benefit to our client. In other words, we do not have to rely upon another financial institution to negotiate important terms and conditions (i.e. loan amount, amortization period, term etc.) with CMHC.
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Eligible Types of Real Estate:
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CMHC underwrites the following types of real estate:
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 Apartments
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Nursing homes
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Retirement homes
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Mixed-use (residential with commercial space)
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New housing, including rental housing
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New condominium developments
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Financing Terms Available:
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Interest Rate
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we are able to negotiate a much lower fixed interest rate, normally 3/4 of 1.0% less than on a conventional mortgage. We can also negotiate floating interest rates that are well below the prime rate.
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Term
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5 to 20 years.
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Loan Amount
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the loan amount will tend to be larger (see "Loan-to-Value" below).
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Loan to Value
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85% maximum.
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Amortization
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the amortization period will tend to be longer (25 - 40 years), thereby reducing monthly mortgage payments.
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Minimum Debt Service
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1.30:1 if term is less than 10 years; 1.20:1 if term is 10 years or greater.
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Non-Recourse Financing
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for mortgages up to a maximum of 60% of value.
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Recourse Financing
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only for mortgages over 60% loan to value. Limited guarantees range from 10% up to a maximum of 50% of the loan amount as the loan to value ratio escalates.
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Cost of CMHC Insurance:
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The cost of insuring your mortgage with CMHC varies according to the loan to value, but there are two types of costs:
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Application Fee - this fee is normally 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 and is added to the loan amount at the time of funding.
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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) and is only paid once during the entire 25-40 year amortization period. The fee is added to the loan amount at the time of funding.
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No 'Out of Pocket' Broker Fee:
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We can provide the option of being paid directly by the lender on this type of financing, so our client does not have to find the cash from his/her own resources to pay us at closing. As this lender is only chosen after the loan amount has been negotiated by CMCC, you can be comfortable that we have worked exclusively on your behalf to negotiate and structure the most attractive overall transaction.
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