CMHC Financing in Alberta & BC
Legacy Mortgage Group
Legacy Commercial Mortgage provides CMHC financing solutions for commercial property investors across Alberta and BC. Our team specializes in helping developers and investors access government-backed mortgage programs that reduce risk and improve cash flow.
Why choose to apply for CMHC Financing?
Legacy Mortgage Group simplifies the CMHC commercial mortgage application process, guiding you through every step—from eligibility checks to final approval—so you can focus on growing your portfolio with confidence.
Lower interest rates than conventional loans
Longer amortization periods (up to 50 years)
Reduced equity requirements
Insurance-backed security for lenders and borrowers
What is CMHC Commercial Financing?
The Canada Mortgage and Housing Corporation (CMHC) commercial lending program, intended for multi-residential property and rental housing developments, was created to help encourage affordable housing options for Canadians. It’s essentially government-backed mortgage loan insurance, designed to reduce risk for lenders and increase approval odds for these projects.
This program is a key tool for developers and investors in this sector. We can help you access CMHC commercial loans to grow your portfolio.
Government Backing and Risk Reduction
When you apply for a loan, the lender is mainly evaluating the risk of loaning you the money. What if you default on your payments?
CMHC insurance is a powerful tool that protects lenders against default. Basically, it’s the government’s way of saying: if this borrower starts missing their payments, we’ll cover it. So there’s much less risk (and headache!) for the lender, so they can offer better terms and higher loan-to-value ratios.
This government mortgage guarantee creates confidence for lenders and investors alike, making CMHC-backed loans one of the most secure options in the market.
CMHC Financing Benefits for B.C. & Alberta Investors
Why do property investors choose CMHC-backed loans? Because the benefits are hard to beat:
Lower down payments
Keep more capital for other projects or operational costs.
Favorable interest rates
Thanks to government-backed security!
Longer amortization periods
Up to 50 years for better cash flow.
Reduced lender risk
Easier approvals and stronger terms.
Higher leverage (up to 85% Loan-To-Value ratio in many cases)
More stability for your investment and predictable financing costs
Legacy Commercial Mortgage helps you understand and leverage these CMHC financing benefits to structure deals that maximize your returns. From application to approval, we handle the details so you can focus on growing your portfolio.
How CMHC Insurance Protects Your Investment
Imagine...
You’re developing a 120-unit apartment building in Calgary with a total cost of $25 million. You secure a CMHC-insured commercial mortgage at 95% loan-to-cost, meaning your loan is $23.75 million and your equity is $1.25 million.
What happens if the unexpected occurs?
- A market downturn hits mid-construction, and the rental market slows.
- There’s a delay out of your control involving construction, like a permit delay, and your project takes significantly longer than anticipated.
- Cash flow projections fall short, and you default on the loan.
Without CMHC Insurance
- The lender bears the full loss risk and may pursue aggressive recovery actions.
- You could face foreclosure and significant personal liability.
With CMHC Insurance
- The lender is protected by mortgage default insurance, so they recover the outstanding balance through CMHC’s guarantee.
- Because the lender’s risk is reduced, you originally secured:
- Lower interest rates (saving thousands monthly)
- Longer amortization (up to 50 years for new construction)
- Higher leverage (keeping more capital for other projects)
Result
Even in a worst-case scenario, CMHC’s backing stabilizes the deal for the lender and allows you to access better terms upfront, making your investment safer and more profitable over time.
Success Stories from Alberta and BC Businesses
Securing Optimal Financing for Multi-Family Investments
Calgary
Summary
Despite major changes in CMHC’s MLI Select program and market fluctuations, Legacy secured standard terms with no restrictive clauses, ensuring optimal financing for the client.
$3,420,000
Loan Size
10-unit CMHC MLI Select multi-family building
Deal Type
95% over 50-year amortization
LTV
CMHC Financing Qualification Requirements B.C. & Alberta
To qualify for CMHC commercial financing in Western Canada, multi-residential properties must meet a set of specific criteria:
Property must be multi-residential (5+ units)
Located in Canada with proper zoning and permits
Strong financial position and credit history
Compliance with CMHC application standards for sustainability and affordability
The borrower must have a proven track record of management experience with similar properties or have a professional third-party management firm.
The borrower must have a minimum net worth equal to at least 25% of the loan amount being requested.
With You Every Step of the Way
In our initial consultation, we can walk you through the specifics of the CMHC multi-residential financing criteria and help you develop a plan that meets the program’s requirements.
When we help you submit your application, we’ll make sure you put your best foot forward to increase your chances of approval. We’ll work with you to highlight areas like your net worth and liquidity, development experience, and any energy-efficient or affordability aspects.
What Documents Do You Need for CMHC Applications?
Here’s an idea of some documents you’ll need to submit with your CMHC application:
- Property appraisal and market analysis
- Detailed description of the property, including age, square footage, construction type, number and type of units, etc.
- Projected income and construction plans with expenses
- Construction plans and cost estimates
- Environmental and building condition reports
There may be additional documentation to submit based on your project. Legacy Mortgage Group simplifies the process by organizing all required paperwork for your commercial mortgage and ensuring your CMHC application materials meet lender and government standards—saving you time and reducing stress.
Down Payment and Terms Advantages
When it comes to down payments, CMHC financing provides a strategic advantage. While conventional loans often require a down payment of 20-35%, CMHC financing has significantly reduced requirements — as low as 5%. This allows you to preserve more of your capital for other investments or operational expenses!
Additionally, CMHC loans offer extended amortization options (up to 50 years), providing more favorable mortgage terms and increasing your cash flow.
How Much Down Payment Do You Need for CMHC Financing?
Typical Down Payment Percentages
15%–20%
Standard multi-residential
As low as 5%
Affordable housing projects
Often 15%
Large-scale developments
CMHC MLI Select: Multi-Unit Property Benefits
If you're looking for financing for a multi-unit residential property that is affordable, energy efficient, and/or accessible, you may be in luck! The CMHC offers this exclusive financing to certain developers.
Not sure if you qualify for CMHC MLI? Reach out to one of our commercial lending experts today.
CMHC covers up to
95%
of the lending value if you qualify
This means you just have to pay a 5% down payment.
Ready to Get Started?
CMHC financing gives commercial property investors in Alberta and BC a competitive edge with lower down payments, longer amortizations, and government-backed security.
Legacy Commercial Mortgage is your expert partner for navigating CMHC requirements and securing approvals quickly. With a proven track record in government-backed commercial loans, we help you unlock better terms and stronger returns.
Ready to secure your next investment? Fill out the Contact form for a confidential, no-obligation consultation.
