Are you looking to finance or refinance a 5+ unit multifamily property in Canada? Whether it’s your first 6-plex or your tenth 12-unit building, a CMHC multifamily loan could offer the most cost-effective financing solution available.

Thanks to the backing of the Canada Mortgage and Housing Corporation (CMHC), this type of loan helps investors secure low-interest, long-term mortgages with high leverage and reduced lender risk.

However, applying for CMHC financing isn’t simple. The process is technical, the documentation is demanding, and approval times are long. That’s why successful investors partner with firms like Smart Capital, who specialize in navigating CMHC applications and securing the best possible loan terms.

This comprehensive guide will walk you through everything you need to know to apply for a CMHC multifamily loan in Canada, including:

• Key benefits of CMHC financing
  
• Qualification criteria
  
• Step-by-step process
  
• Common questions and misconceptions
  

✅ What Is a CMHC Multifamily Loan?

A CMHC multifamily loan is a mortgage insured by the Canadian Mortgage and Housing Corporation, Canada’s national housing agency. These loans are specifically designed for:

• Rental apartment buildings with 5+ units
• Student housing, seniors’ residences, and affordable housing
• New construction or existing buildings
  

Because CMHC guarantees the loan, lenders are more willing to offer lower rates, higher loan-to-value (LTV), and longer amortization periods.

✅ Top 5 Reasons to Choose CMHC Multifamily Financing

If you’re still debating between private financing vs. CMHC, here’s why most serious investors choose the latter for stabilized, income-producing properties:

1. Significantly Lower Rates

A CMHC-insured mortgage offers rates typically 100 to 150 basis points lower than a conventional loan. That can mean thousands in annual savings,especially important for long-term holds.

2. Longer Amortization

Where private and conventional loans max out at 25–30 years, CMHC loans allow amortization of up to 40 years, reducing your monthly debt obligations and improving your cash flow.

3. Higher Loan-to-Value Ratios

CMHC-insured loans can go as high as 85% LTV, meaning you need less upfront capital to acquire or refinance your property. In some affordable housing programs, LTV can exceed 90%.

4. Increased Refinance Options

Own a 10-unit building with equity? You can pull cash out through CMHC refinancing and use that capital to buy your next building,or fund upgrades to boost rents.

5. Strong Exit Strategy

If you’re using a bridge loan or private mortgage to acquire quickly, transitioning to CMHC allows you to stabilize and secure long-term financing at unbeatable terms.

✅ How to Apply for a CMHC Multifamily Loan (Step-by-Step)

Here’s the proven process we use at Smart Capital to help clients succeed when applying for CMHC financing:

Step 1: Determine Eligibility with a CMHC Calculator

Before you start, we help you simulate your financing options using a customized CMHC mortgage calculator. We analyze:

• Net operating income (NOI)
  
• Estimated loan amount
  
• Insurance premium (CMHC mortgage insurance fee)
  
• Required DSCR (Debt Service Coverage Ratio)

This step helps us pre-qualify your deal and avoid wasted time.

Step 2: Assemble a Compliant Loan Package

Example of CMHC loans require detailed documentation:

• Rent roll and leases
  
• T12 (12 months of financials)
  
• Phase 1 Environmental Site Assessment
  
• Building Condition Report
  
• Appraisal by a certified firm
  
• Net worth statement and experience resume
  

At Smart Capital, we take care of assembling, verifying, and submitting all documents to ensure your file is CMHC-ready.

Step 3: Match You with the Right Lender

Not all lenders offer CMHC products,and fewer specialize in small to mid-size multifamily loans. We maintain relationships with:

• RBC & Desjardins
  
• First National
  
• Equitable Bank
  
• CMLS and other non-bank lenders
  

We negotiate on your behalf, ensuring you receive the best rate and terms available.

Step 4: Submit to CMHC & Monitor Approval

Once your file is complete, it’s submitted to CMHC via the lender. Expect:

• Review times of 6–10 weeks
  
• Communication via lender & Smart Capital
  
• Insurance premium added to the loan
  
• Detailed loan commitment upon approval

Step 5: Close the Loan and Deploy Capital

After approval, the lender proceeds to closing. You’ll sign the final documents and begin amortization,with terms that can last up to 40 years.

✅ Why Choose Smart Capital?

Smart Capital Real Estate is a CMHC loan specialist with deep expertise in commercial real estate financing across Canada.

With over $64 million funded, we help investors like you:

• Access the best CMHC lenders in Canada
• Prepare a fully compliant application package
• Save time, money, and frustration
• Execute a long-term real estate financing strategy

Whether you’re refinancing a 6-plex in Ontario or financing a 12-unit acquisition in Alberta, our process is designed to get you funded,fast and across Canada.

👉 Book your free strategy call now

✅ Frequently Asked Questions (FAQs)

❓ What is the CMHC insurance premium?

The CMHC premium varies based on the loan-to-value ratio. For example:

• 65% LTV → ~2.8% premium
• 85% LTV → ~4.5%–5.5% premium
  

This cost can be rolled into your mortgage.

❓ Can I use CMHC loans to refinance an existing property?

Absolutely. CMHC is ideal for stabilized buildings with strong cash flow. It’s a great way to take equity out and reduce your long-term borrowing cost.

❓ How long does CMHC approval take?

Typically between 6 to 10 weeks, depending on deal size and documentation.

❓ Do I need a broker to apply?

Not necessarily,but CMHC applications are complex, and working with an experienced firm like Smart Capital ensures a faster, smoother, and more strategic outcome.

✅ Conclusion: CMHC Is the Smart Way to Finance Multifamily

There’s no better time to apply for a CMHC multifamily loan in Canada. With interest rates still volatile and investor demand rising, locking in a long-term CMHC-insured mortgage can future-proof your real estate portfolio.

The challenge? Doing it right the first time.
The solution? Partnering with Smart Capital.

🎯 We’ll structure your deal, prepare your file, match you with the right lender, and walk you through every step,so you can close with confidence.

👉 Ready to apply? Book a discovery call and let’s get your financing approved.