CONSTRUCTION FINANCING
NATIONAL HOUSING STRATEGY
Apartment Construction Loan Program
SETT Construction offers support through the CMHC Apartment Construction Loan Program, providing low-cost funding to eligible borrowers during the riskiest phase of rental apartment development, from construction to stabilized operations. The program offers loans ranging from $1,000,000 up to 100% of the residential component cost, focusing on standard rental apartment projects in Canada where there is a need for additional rental housing supply.
READY TO START YOUR NEXT PROJECT?
CONSTRUCTION LOAN
BENEFITS OF THE PROGRAM
FAVOURABLE TERMS
Enjoy a 10-year term with a fixed interest rate, up to a 50-year amortization period, and financing options of up to 100% loan-to-cost for residential space and up to 75% for non-residential space, depending on application strength.
LOW COSTS
Interest-only payments are financed by the loan during construction until the occupancy permit is issued, with principal and interest payments starting 12 months after achieving stabilized effective gross income.
Access to CMHC mortgage loan insurance
CMHC mortgage loan insurance is effective from the first draw and throughout the amortization period, simplifying loan renewal, with the borrower only paying the PST, if applicable.
WHAT YOU NEED TO APPLY
ARE YOU ELIGIBLE?
Projects must have at least 5 rental units, a loan size of $1 million, and address rental supply needs. They must meet documentation requirements, with the first construction draw within 6 months of the loan agreement. Financial viability is essential, with the ability to meet debt coverage ratios without ongoing subsidies. For affordability, at least 20% of units must have rents below 30% of the median income or the project must be approved under another affordable housing program. Energy efficiency standards require a minimum 15% improvement over relevant building codes. Additionally, 10% of units must meet local accessibility standards.
NEED A LOAN?
APPLY NOW
Please fill out the contact form below to apply for a construction loan. Our team will review your application and reach out to discuss the next steps in securing the funding for your project.