CMHC-insured financing remains one of the most attractive tools for multi-residential lending in Canada, offering lower rates, longer amortizations, and reduced capital requirements for lenders. But the legal landscape around CMHC deals carries nuances that can catch even experienced lenders off guard. Here are ten practical points to keep in mind.
1. The Borrower Structure Matters More Than You Think
CMHC has specific requirements around borrower entities, including restrictions on corporate complexity, foreign ownership thresholds, and the need for satisfactory beneficial ownership disclosure. Getting the borrower's corporate structure right at the outset avoids delays, and potential deal-killers, down the road.
