Investing in multifamily housing: The benefits of CMHC’s APH Select program and commercial financing options

In a society where affordable housing has become a major national priority, many real estate investors are turning to rental or mixed-use projects. To support these specific financial initiatives are available, such as CMHC’s APH Select program combined with tailored commercial loans offered by specialized brokers.

What is the significance of the CHS APB Select program?

The APH Select program aims to promote the development of affordable, low-energy housing accessible to all, by encouraging its creation or renovation, as well as its preservation. It is aimed at developers and investors involved in collective projects comprising a minimum of 5 residential units, or 50 in the case of residences for the elderly.

The benefits are many and varied

• Analysis completed: potential value estimated up to 95% for residential properties
• Reduce insurance costs
• Reduced debt obligations

The eligibility criterion is based on a points-based system (a minimum of 50 is required), which is awarded according to three main criteria: ease of access to affordable, energy-efficient housing, and accessibility for all individuals interested in the proposed residential project. For example, if a recent development offers 25% of its units for rent at 30% of the local median income, it scores 100 points for affordability. Additional points can be awarded for energy or accessibility initiatives, making the project even more attractive in terms of available financing.

Commercial loans: a personalized approach:

Whether it’s a residential rental project or a large-scale condominium project, you’ll find commercial financing options tailored to your project. An experienced mortgage broker will be at your side to guide you in your search for the most suitable product.

• A conventional fixed-rate or variable-rate loan
• A loan with monthly interest-only payments.
• A construction loan guaranteed by the Canada Mortgage and Housing Corporation.

These choices often offer greater financial flexibility, especially when future rental income is steadily increasing, and by working closely with nationally recognized lending institutions, you can maximize your financial leverage while reducing potential risks.

Why combine APB Select with a commercial loan?

Combining CMHC insurance via APH Select with a well-structured commercial loan is a remarkably effective and advantageous strategy. It offers the possibility of maximizing the amount of financing and the repayment period, while optimizing long-term profitability thanks to the advantages it provides. This approach also proves to be a relevant way of harmonizing your real estate projects with the social and environmental objectives in vogue in today’s market.

Results

Investing in community real estate today is much more than just a business opportunity; it’s a concrete way to positively influence the community while building a lasting legacy. By carefully choosing your partners – such as a specialized mortgage broker – and taking advantage of beneficial initiatives like APH Select, you maximize your chances of successfully completing your projects.