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Underwriting Tool

CMHC Debt
Underwriter

Size CMHC-insured multifamily debt using institutional underwriting methodology. Contract rate priced off 5-year CMB yield + lender spread. Vacancy, bad debt, management, and Repairs & Maintenance reserves imposed per CMHC standards. Premium schedule updated per CMHC Advice 264 (July 14, 2025).

Deal Parameters

Property

$
$

Parking, laundry, storage

CMHC Imposed Assumptions

System

These values are set by CMHC and cannot be adjusted. Lenders must underwrite using these minimums regardless of actual property performance.

Vacancy
3%?CMHC minimum vacancy assumption. Higher of 3% or market vacancy.
Bad Debt
1.5%?CMHC standard bad debt / collection loss allowance.
Management Fee
4.25% of EGR?Imposed regardless of self-management. CMHC assumes professional management costs.
Repairs & Maintenance
$750/unit/yr?CMHC R&M reserve: $750/unit for concrete, $975/unit for wood frame. Currently using concrete assumption.

Property-Specific Expenses

Annual amounts. These vary by property and are not standardized by CMHC.

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$

Heat, hydro, water, gas

$

Valuation

For purchases, LTV is based on the lesser of the purchase price or appraised value.

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$

Leave same as purchase price if unknown

Lending value: $5,000,000 · $156,250 per unit · 7.20% cap rate

Contract Rate

CMHC-insured multifamily underwrites at the contract rate. No stress-test / qualification rate applies (that is OSFI B-20 for residential only).

%

Canada Mortgage Bond yield

%

Typical: 50-65 bps

4.02%

CMB + spread

Amortization

Standard max: 40 years

MLI Select

CMHC's MLI Select program provides enhanced loan terms for projects meeting affordability, accessibility, and energy efficiency criteria.

EGI Surcharge

0.25% of net loan added if EGI target not met at first advance (CMHC Advice 264).

ConcretePurchase

Maximum Insured Loan

$4,250,000

Constrained by LTV · 85.0% LTV · 4.02% rate

CMHC Premium (5.35%)$227,375
Total Insured Loan$4,477,375
Annual Debt Service$238,541
Monthly Payment$19,878
Equity Required$750,000
Year 1 Cash Flow$121,269
Cash-on-Cash Return16.17%

NOI Build

Gross Rental Income$499,200
Other Income$28,800
Less: Vacancy (3%)($15,840)
Less: Bad Debt (1.5%)($7,920)
Effective Gross Income$504,240
Property Taxes($45,000)
Utilities($36,000)
Insurance($18,000)
Management (4.25% EGR)($21,430)
R&M ($750/unit · concrete)($24,000)
Total Expenses$144,430
Net Operating Income$359,810
Expense Ratio28.64%

Sizing Constraints

DSCR-Sized Loan$6,139,604
LTV-Sized Loan$4,250,000BINDING
Min DSCR Threshold1.10x
Max LTV85%
Actual DSCR1.51x
Effective Amortization35 years
Lending Value Basis$5,000,000

Premium Schedule (Advice 264)

≤ 65%2.60%
≤ 70%2.85%
≤ 75%3.35%
≤ 80%4.35%
≤ 85%5.35%
≤ 90% (MLI)5.90%
> 90% (MLI)6.15%

Standard rental housing. MLI Select discounts: 50pts → 10%, 70pts → 20%, 100pts → 30% off premium.

Need a lender-ready underwriting?

Our team can run a full underwriting with market-specific adjustments for your property.

Request Underwriting

Methodology

This calculator sizes CMHC-insured multifamily debt using institutional underwriting standards. The maximum loan is the lesser of DSCR-constrained and LTV-constrained amounts. Insurance premiums reflect CMHC Advice 264 (effective July 14, 2025).

Rate construction: The contract rate is built from the 5-year Canada Mortgage Bond (CMB) yield plus a lender spread, typically 50 to 65 basis points for standard deals. There is no separate qualification or stress-test rate for CMHC-insured multifamily lending (the OSFI B-20 stress test applies to residential mortgages only).

CMHC-imposed assumptions: Vacancy (3%), bad debt (1.5%), management fee (4.25% of EGR), and Repairs & Maintenance reserves ($750/unit for concrete, $975/unit for wood frame) are system constants imposed by CMHC regardless of actual property operations.

Loan purpose: Both purchase and refinance transactions can access up to 85% LTV for standard market rental (up to 95% with MLI Select). For purchases, the lending value is the lesser of the purchase price or appraised value. For refinances, the lending value is based on the appraised value only.

DSCR sizing: The maximum loan whose annual debt service at the contract rate equals NOI divided by the minimum DSCR requirement (1.10x standard, as low as 1.00x with MLI Select credits).

MLI Select: Credits unlock enhanced terms: lower DSCR minimums (down to 1.00x), higher LTV (up to 95%), longer amortization (up to 50 years), and premium discounts (10 to 30%) for projects meeting CMHC's affordability, accessibility, and climate compatibility criteria.

EGI surcharge: An additional 0.25% of the net loan amount is charged if the Effective Gross Income target is not met at first advance.

Insurance premiums are estimated based on CMHC's published Advice 264 schedule and added to the base loan amount. Actual premiums and underwriting may vary by lender and property. This tool is for educational purposes. Contact our team for lender-ready underwriting.

Disclaimer: This calculator is provided for informational and educational purposes only. It does not constitute a loan commitment, pre-approval, mortgage offer, or financial, legal, or investment advice. Results are estimates based on standard CMHC underwriting assumptions and publicly available rate data; actual loan terms, insurance premiums, and eligibility are determined by your lender and CMHC based on property-specific underwriting. Rate data is updated periodically and may not reflect real-time market conditions. Consult a licensed mortgage professional before making financing decisions. Colliers International and its affiliates accept no liability for decisions made based on the output of this tool.