CMHC RENTAL CONSTRUCTION FINANCING
The Rental Construction Financing initiative (RCFi) provides low-cost loans encouraging construction of rental housing across Canada where the need is clearly demonstrated. It provides up to $13.75 billion in loans for the construction of 42,500 units and will run from 2017 to the end of 2027.
The loans offer:
a 10-year term (fixed or hybrid) for certainty during the most risky periods of development
up to a 50-year amortization period for smaller monthly payments and long-term viability
CMHC mortgage loan insurance from the outset with the premium fully paid at no additional cost to the borrower
up to 100% loan to cost for residential space and up to 75% loan to cost for non-residential space
interest payments only during the construction and rent-up phase — principal payments begin after 1 year of stable operating income
The RCFi looks to prioritize projects that:
Meet or exceed the mandatory minimum requirements for financial viability, affordability, energy efficiency and accessibility
Demonstrate greater social outcomes that contribute to vibrant, socially inclusive neighborhoods and
Address a need for supply in the market