Exploring Opportunities: Financing Townhomes for Rental Purposes Through CMHC

???? Did you know that you can finance townhomes for rental purposes under CMHC's (Canada Mortgage and Housing Corporation) policy? Here's everything you need to know about this financing option:

??Understanding Multi-Unit Properties: To be eligible for CMHC financing, the rental units (including townhomes) must meet specific criteria. These criteria typically involve the property's condition, location, and the owner's creditworthiness and management experience.

??Benefits of CMHC Financing: Financing through CMHC offers various benefits, including lower interest rates, higher loan-to-value ratios (up to 85% or more within the MLI Select program), and longer amortization periods of 40 to 50 years. These benefits can significantly reduce the equity requirement for borrowers and improve cash flow.

??Coverage of Adjacent Properties: CMHC financing can cover multiple adjacent properties if they are operated together as a rental complex. However, borrowers may need to demonstrate that the operation of these properties is integrated and that they serve as a single investment.

??Application Process: The application process for CMHC Mortgage Loan Insurance involves working with a CMHC-approved lender. Borrowers must provide detailed information about the property, the rental market, and their financial and operational capabilities.

In summary, financing townhomes for rental purposes under CMHC's policy can provide investors with access to favorable terms and conditions. By understanding the eligibility criteria, benefits, coverage of adjacent properties, and application process, investors can make informed decisions to maximize their investment opportunities in the rental market.

Daniela Peeva, LLB, BA?

Vice President, Financing?

Broker License #13234?

M: 416 879 7404?

Peakhill Capital?