Multi-Family Property Financing

Any residential property with five or more units is classified as commercial multi-family. This includes apartment buildings, townhouse complexes, student housing, nursing homes, and seniors residences. Properties with fewer than five units are typically financed through residential mortgage programs.

CMHC insurance allows borrowers to access higher loan-to-value ratios of up to 85%, lower interest rates, and amortization periods extending to 40 years. The insurance premium is added to the mortgage balance, making it easier to acquire or refinance larger multi-family portfolios with less upfront capital.

Yes, we arrange financing for condo conversion projects where existing rental buildings are converted into individually owned condominium units. These transactions often involve construction financing to cover renovation costs, followed by takeout financing once units are sold or rented.

Lenders typically require a current rent roll, operating statements for the past two to three years, property appraisal, environmental assessment, and borrower financial statements. For CMHC-insured applications, additional documentation including capital expenditure plans and building condition reports may be needed.