Apartment Construction Loan Program: Standard Rental Housing

• Integrity Declaration
• Articles of incorporation and bylaws, ownership structure details, organizational chart, and names of registered and beneficial owners, as applicable
• Audited financial statements for the last three fiscal years for the proposer, each guarantor and the parent company, if applicable
• Development experience resumes and property management CVs, plus the Project Assessment Workbook
• Appraisal report, Phase 1 environmental site assessment, geotechnical report, proof of approved zoning, project description form, and Energy Efficiency Criteria Attestation and Accessibility Criteria Attestation, if applicable

Who is eligible?

• For-profit developers
• Non-profit housing developers
• Rental housing cooperatives, excluding housing cooperatives with share capital
• Other levels of government, including Indigenous governing bodies, provinces, territories and municipalities

Who is not eligible

• Housing cooperatives with share capital

Eligible geographic areas

• Businesses located anywhere in Canada, as this program is administered by the Canada Mortgage and Housing Corporation (CMHC), a federal Crown corporation.

• Applications are prioritized based on the strongest projects, including those that generate the best social outcomes and help increase rental supply.
• Affordability commitments are scored over 10, 15 or 20+ years according to the share of affordable units and the rent level relative to median household income.
• Climate commitments are scored using 2020 building-code energy-efficiency levels, with separate scales for Part 3 and Part 9 buildings.
• A market adjustment is applied by market type, with 0, 9 or 18 points.
• Total points determine the loan flexibilities and more favourable loan terms available to the project.

• Step 1: Prepare required documentation
  • Consult the Required Documentation Checklist to identify all documents needed at the application stage.
  • Complete the Project Assessment Workbook.
  • Complete the Integrity Declaration.
• Step 2: Create or access CMHC portal account
  • Sign in or create an account in the CMHC portal.
  • Ensure you are ready to upload all required documents through the portal.
• Step 3: Draft and submit application
  • Prepare a draft application and compile all required supporting documents listed in the Required Documentation Checklist.
  • Share the draft application with your CMHC specialist for confirmation that it is complete.
  • After receiving confirmation from your CMHC specialist, submit your application through the CMHC portal.
  • Upload all required documents in the portal with your submitted application.
• Step 4: Prioritization and conditional approval
  • CMHC reviews your application for readiness, eligibility and completeness.
  • Be aware that only complete applications will be reviewed.
  • In some cases, CMHC may suggest that you apply to a different initiative or program if it is a better fit.
  • If your project is selected, receive a conditional approval within 30 days of complete submission.
  • Review the conditional approval outlining terms, conditions and additional documents required for underwriting.
• Step 5: Underwriting by CMLS
  • After conditional approval from CMHC, your application is sent to CMLS for underwriting.
  • Pay the application fees as described in the Program Highlight Sheet.
  • Within 90 days of conditional approval, submit all required underwriting documents to CMLS; otherwise, your application will be withdrawn.
  • Await completion of underwriting, which can take up to 60 days after CMLS confirms receipt of all necessary documentation.
• Step 6: Receive and review term sheet
  • If underwriting is successful, receive a term sheet from CMHC outlining key terms and conditions of the financing.
  • Review the term sheet to understand the financing structure and requirements.
• Step 7: Sign and return loan agreement
  • After you sign and return the term sheet, wait for CMHC to issue a loan agreement (within 40 days of receiving the signed term sheet).
  • Review the loan agreement carefully.
  • Accept, sign and return the loan agreement to CMHC within 30 days.
• Step 8: First advance and ongoing servicing
  • After the loan agreement is fully executed, begin the funding process with monthly construction draws.
  • Work with CMLS, which administers and services the loan on behalf of CMHC.
  • At the end of the term, transfer the CMHC-insured mortgage to a CMHC-approved lender.

• Applications are reviewed for readiness, eligibility and completeness, and only complete applications are reviewed.
• Selected applications receive conditional approval within 30 days of complete submission, together with the terms and additional underwriting documents.
• After conditional approval, the file is sent to CMLS for underwriting and the application fees must be paid.
• Applicants have up to 90 days to submit the required underwriting documents; once CMLS has all documents, underwriting can take up to 60 days.
• CMHC issues the loan agreement within 40 days after receiving the signed term sheet; applicants have 30 days to accept and return it, monthly construction advances begin once the agreement is fully signed, and the mortgage must be transferred to a CMHC-approved lender at term end.

• CMHC mortgage loan insurance is automatically integrated into the loan; the borrower is only responsible for paying provincial sales tax (PST) on the premium, where applicable.
• Interest-only payments are financed by the loan during construction and then paid by the borrower from the issuance of the occupancy permit until 12 consecutive months of stabilized effective gross income.
• After stabilization is reached, the borrower is responsible for principal and interest payments from stabilization until the end of the loan term.
• At the end of the term, borrowers must transfer the CMHC-insured mortgage to a CMHC-approved lender (take-out financing).