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
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:
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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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interest rates on
CMHC mortgages can be significantly
lower than on a conventional mortgage
and are based on spread over an
internal cost of funds, Government
of Canada Bonds or Canada Mortgage
Bonds. |
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Term
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5 to 20 years.
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Loan Amount
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leverage, typically limited to 75%
of the property value
conventionally, is available up to a
maximum of 85%. |
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Amortization
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longer amortization periods
than are typical of conventional
financing are available (minimum of
25 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).
The fee is added to the loan amount at the
time of funding. |
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