In the multi-family sector, there are two types of standard financing available: CMHC-insured financing and conventional financing.
CMHC-insured financing: This option offers borrowers lower interest rates, terms of at least five years, and higher loan-to-value ratios. It is the preferred choice for many borrowers due to its attractive features. Borrowers may also have access to programs such as the Energy Efficiency Program, which can increase loan amounts, provide premium credits, and lower monthly expenses. Sunlite Mortgage collaborates with Canada’s largest CMHC-insured lender, specializing in this type of financing.
Conventional financing: Conventional financing is an excellent alternative when CMHC-insured financing is not feasible. This could be due to factors such as a high purchase price, inability to meet CMHC’s personal guarantee requirements, or the presence of a commercial component (such as retail or office space) that disqualifies the property from CMHC insurance. Conventional financing typically has a term of five years, although longer terms of seven or ten years may be available.
Commercial Mortgage-Backed Securities (CMBS): CMBS is a type of conventional financing suitable for established and stabilized properties with a history of at least three years of stable operations. This financing solution is particularly suitable for properties with consistent and stabilized net cash flow.
Whether borrowers opt for CMHC-insured financing, conventional financing, or CMBS, Sunlite Mortgage offers comprehensive expertise and support to help borrowers secure the most suitable financing option for their multi-family properties.
