Income Property
Open the Door to a Range of Financing Options for Investors
CMHC's mortgage loan insurance for 1-4 unit rental (non-owner occupied) properties provides investors with more housing finance choice when purchasing or refinancing a rental property.
Features
- Purchase and Refinance - Loan - to Value ratios up to 80%
- No application fee or lender appraisal required
- Streamlined automated processing through emili
- Flexible financing options - Single advance, progress advances and extended amortization periods are available
- Flexibilities available for energy-efficient homes
Loan Purpose
- Purchase and Refinance (including Purchase and Refinance with improvements)
- Single and Progress Advances
- Portability (previous rental applications approved through emili only)
Number of Units
- 1-4 units (no commercial component)
Loan to Value (LTV) Ratio
- Purchase and Refinance - Up to 80% for 1-2 units / 80% for 3-4 units
- Standard variable rate loans - Up to 80%
Borrower Eligibility
- Permanent Residents including newcomers to Canada, Self-employed borrowers )provided that income is verified through a third party source), Corporate borrowers (must provide a personal guarantee of 100% of the mortgage loan).
General Guideline for History of Managing Credit (Beacon score or equivilent)
- Purchase LTV 80% (non-traditional sources). Recommended minimum score of 650
- Purchase LTV 80% (traditional sources). Recommended minimum score of 600
- Refinance LTV 80%: Recommended minimum score of 650
- Refinance LTV 80%: Recommended minimum score of 600
- Purchase and Refinance LTV 60.01-80%: Minimum score of 580
- Purchase and Refinance LTV
< 60%: No minimum score required
Debt Servicing Guidelines
- Total Debt Service Ratio Calculation: PITH (all properties) + All Other Debt Obligations - 80% of Gross Rental Income (all properties) / (divided into) Gross Annual Household Income
<42%
- Flexibility provided for borrowers who have a strong history of managing credit. Total Debt Service 42.01-44%: Recommended minimum score of 680
- PITH = Annual Principal, Interest, Tax and Heat payment (where borrower required to pay heat costs). Rental Income must be verified for all rental properties.
Loan Security
Max. Amortization
Interest Rate Types
- Fixed, standard variable, capped variable, and adjustable
Energy-Efficiency
- Flexibilities include a 10% premium refund and extended amortization periods without surcharge
| Application Premiums (non-owner occupied) | Surcharges |
| Loan to value Ratio |
Premium on Total Loan Amount |
Premium on Increase to Loan Amount
for Portability |
Extended Amortization = Add 0.20% for every 5 years of
amortization beyond the 25 year amortization period.
Blended Amortization = For portability and refinance 0.50%
CMHC Line of Credit/Interest Only Mortgages = Repayment Option:
5 Years (5/20) 0.25%
10 Years (10/15) 0.50%
Conversion from 5/20 to 10/15 0.35%
|
| Up to and Including 65% |
1.25% |
2.75% |
| Up to and Including 75% |
1.75% |
3.00% |
| Up to and Including 80% |
2.50% |
3.75% |

