CMHC Rental Property Purchase
Compare the Bottom Line When Purchasing Rental Buildings
The following example illustrates the potential for improved return on investment using CMHC insured financing for purchase transactions.
*In this example, an interest rate differential of 0.75% reflects the reduced rate that a lender may charge on CMHC-insured loans of this nature. Such rates are negotiated between the lender and borrower and are dependent on various factors.
**This example refers to the two most common types of return on investment: the first uses cash flow over capital invested; the second adds annual capital repayment of the mortgage to the cash flow.
The above example is for general illustrative purposes only.
Information contained in this example is provided “as is” without warranty or representation of any kind, express or implied. The information (including the examples, assumptions and illustrations described in it) is provided for general illustrative purposes only and is not intended to provide financial or other advice and should not be relied upon in that regard. CMHC and its employees and agents shall not assume any responsibility, and in no event shall be liable for any damages (including special, indirect or consequential), in connection to or resulting from the information, its accuracy or use.