Based in Toronto, our experienced team of professionals provides Canada Mortgage and Housing Corporation (CMHC) insured term and construction mortgage financing to high-rise condominium developers, rental apartment and retirement home owners.
We have a mandate across all major urban centres in Canada with a primary focus on Vancouver, Calgary, Toronto and Montreal.
BNP Paribas (Canada) is now one of Canada's largest providers of CMHC-insured high-rise condominium construction financing in Ontario. As an NHA-Approved Lender, BNP Paribas (Canada) deals directly with CMHC and has an excellent working relationship with the various CMHC Multiple Underwriting teams. Our experience and reputation adds value to the client relationship by providing a turnkey financing solution for eligible transactions.
What is CMHC and what are the benefits?
Canada Mortgage and Housing Corporation, an agency of the federal government, provides mortgage insurance for residential properties. Since CMHC's insurance covers principal and accrued interest in the event of default by the Borrower, the Bank can offer significantly reduced interest rates relative to a conventional mortgage.
With our deal structures, the interest rate savings more than offset the cost of the mortgage insurance (which is included in the mortgage amount and covers the full amortization period).
These interest rate savings are for the client's benefit and make the CMHC-insured option a very attractive alternative to a conventional mortgage.
Another significant advantage of the CMHC-insured mortgage option for term loans is the ability to obtain higher leverage relative to a typical conventional mortgage.
Our Typical Transaction
Mortgage terms typically range from 18-48 months for condominium construction financing and up to 10 years for the term loans on rental apartments and retirement homes. Interest rates are typically based on the Bankers' Acceptance (BA) rate for construction loans with regular monthly progress draws. For longer-term fixed rate transactions, the interest rate is quoted as a spread over the appropriate Government of Canada bond yield. The lending spreads are deal specific based on the fundamentals of the underlying transaction.
In terms of loan size, our minimum target is $10 million for term loans and $25 million for construction loans. Smaller transactions are considered on an exceptional basis for new and existing relationships. We do not have a specific maximum size limitation, and have financed individual condominium construction loans of over $210 million.
Pride in high quality customer service and strong client relationships
In terms of performance, total client satisfaction and endorsement of our product offering, we believe the best gauge of our success is the significant amount of repeat business we have done with some of Canada's largest and most respected real estate owners and developers: Tridel, Menkes, Lanterra, Diamante, Amacon, Cityzen, Canderel, Appia, Pinnacle, Tricon, Invar, Bosa, Cresford, Plazacorp, and other important relationships with Empire, Great Gulf Homes, Concord Adex, Fernbrook, Westbank, Peterson Group and DeCotiis Properties.
Please contact us for more information