May 16 (edited) in General discussion
Triplex / Fourplex Financing
Hey everyone!
Listening to the CRI pod for a while now but new to Realist and 1st post!
In the most recent episode of the show - 5 of the Most Important Changes in Canadian Real Estate
Dan and Nick touched on the gap in the mortgage market for good term loan options to payout a construction loan that was obtained to renovate the property.
In an effort to avoid a construction loan altogether has anyone had experience with CMHC's Income Property program? From CMHC's website their guidelines for Income Properties (2-4 units) requires properties to be valued below $1MM, so likely markets outside the Golden Horseshoe for Ontario
- Small Rental Loans (non-owner occupied)
- https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/mortgage-loan-insurance-homeownership-programs/cmhc-income-property
They mention advancing options but is the program similar to Purchase + Improvement offered for owner-occupied homes where they require
- Your down payment to be 20% of the "As Complete" value and
- Construction costs to be fronted by you and you get reimbursed after completion?
Or has anyone considered the program and experienced other drawbacks which prevented a project from penciling
Thanks in advance!
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2 comments
Triplex / Fourplex Financing
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