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APCHQ — Apartment Construction Loan Program: Student Housing
Last Update: March 3, 2026
Canada
Low-cost federal financing to build and convert dedicated student housing
Loans and Capital investments
Overview
The Apartment Construction Loan Program: Student Housing offers low-cost loans starting from $1 million, with up to 100% loan-to-cost financing for residential space (and up to 75% for non-residential space), to support student housing projects. It finances the construction of new student residences or the conversion of non-residential buildings into permanent, long-term rental housing for students.
At a glance
Funding available
Financing goals
- Reduce the ecological footprint
Eligible Funding
- Minimum amount : 1,000,000 $
- Up to 100% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Educational services
Location
- Canada
Legal structures
- Non-profit
- Public or Parapublic institution
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Youth (<40)
Non-profit candidates
Sector of operation
- All industries
Target groups
- All the groups
Revenue structures
- All structures
Scope
- All dimensions
Activities funded
- Construction of new on-campus student housing buildings with at least 5 rental units.
- Construction of new off-campus, self-contained student housing projects located near a post-secondary campus.
- Conversion of existing non-residential buildings into on-campus student housing.
- Conversion of existing non-residential buildings into off-campus, self-contained student housing close to a post-secondary institution.
- Development of long-term, purpose-built rental housing projects specifically designed to meet local student housing needs.
Eligibility
- The applicant must be a post-secondary educational institution, a for-profit developer, a non-profit developer, or another level of government.
- The project must provide student housing, with at least 5 rental units, and clearly respond to a demonstrated need for student housing.
- The primary use of the project must be residential, with any non-residential space limited to a minority of the building’s floor area and total cost.
- The applicant must demonstrate sufficient financial and operational capacity to develop and operate the project without ongoing subsidies and to meet required debt coverage ratios.
- The project must meet and maintain one of the program’s defined affordability conditions for at least 10 years, including capped rent increases over that period.
Who is eligible?
- Post-secondary educational institutions
- For-profit developers
- Non-profit developers
- Other levels of government
Eligible expenses
- Construction costs for new student housing units in residential space.
- Costs to convert existing non-residential buildings into student housing.
- Development and construction expenses for non-residential components of the project, up to 75% loan-to-cost.
- Interest costs during construction, financed by the loan as interest-only payments.
- Principal and interest payments on the loan from stabilization to the end of the term.
Eligible geographic areas
- Businesses and organizations located in Canada (federally administered by Canada Mortgage and Housing Corporation).
Selection criteria
- Applications are prioritized when they meet or exceed all mandatory minimum program requirements.
- Projects that demonstrate stronger social outcomes and contribute to vibrant, socially inclusive neighbourhoods are ranked higher.
- Projects that clearly address a need to increase student housing supply in the local market receive priority.
How to apply
4
Finalize application for prioritization
- Work with your CMHC/ SCHL specialist to address any missing or incomplete items
- Ensure the application meets readiness, eligibility, and completeness requirements
- Await confirmation that your complete application has been accepted for prioritization review
5
Receive and review conditional approval
- Undergo CMHC prioritization based on minimum requirements, social outcomes, and market supply needs
- Receive conditional approval within about 30 days if selected
- Review the conditional approval for terms, conditions, and additional underwriting documentation required
6
Complete underwriting with CMLS
- Submit all additional documents required for underwriting to CMLS within 90 days of conditional approval
- Pay the application fees as outlined in the Program Highlight Sheet (PDF)
- Respond to any CMLS requests until underwriting is completed (up to 60 days after all documents are received)
7
Sign and return the term sheet
- Receive a term sheet from CMHC outlining key financing terms and conditions
- Review and negotiate, if necessary, within the timeframe indicated
- Sign and return the term sheet to CMHC to proceed to the loan agreement stage
8
Execute and return loan agreement
- Receive the loan agreement from CMHC within 40 days of CMHC getting the signed term sheet
- Review all legal and financial terms of the loan agreement
- Sign the loan agreement and return all required signed loan documents to CMHC within 30 days
9
Receive advances and administer loan
- Begin the funding process once the loan agreement has been fully executed
- Receive monthly construction draws administered by CMLS on behalf of CMHC
- Plan for end-of-term take-out financing by transferring the CMHC-insured mortgage to a CMHC-approved lender
Additional information
- CMHC mortgage loan insurance is automatically included; borrowers do not pay the insurance premium but may need to pay applicable provincial sales tax.
- Selected applications receive conditional approval within 30 days of submitting a complete application.
- For off‑campus projects, a post‑secondary institution must be involved, which can include roles such as developing, managing, leasing units or supporting student tenant selection.
- For off‑campus projects, units must be self‑contained and limited to a maximum of four bedrooms per unit.
