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CMHC – Apartment Construction Loan Program

In the ever-evolving landscape of the Canadian housing market, the role of the Canada Mortgage and Housing Corporation (CMHC) has become increasingly significant. As housing needs grow and shift, CMHC continues to adapt its programs and services to support the development of sustainable, affordable housing across the country. One of the most impactful programs offered by CMHC is the Apartment Construction Loan Program (ACLP), which provides vital support for the construction of rental housing. This article delves into the details of this program, exploring its benefits, eligibility criteria, and its broader impact on housing in Canada.


Understanding CMHC and Its Role

Before diving into the specifics of the Apartment Construction Loan Program, it’s essential to understand what CMHC is and its role in the Canada housing market. The Canada Mortgage and Housing Corporation, commonly referred to as CMHC or SCHL (Société Canadienne d’Hypothèques et de Logement), is a crown corporation that plays a pivotal role in housing policy and administration in Canada. Established in 1946, CMHC’s mandate is to facilitate access to affordable housing and to contribute to the stability of the housing market and the financial system in Canada.


What is CMHC?

CMHC is the national housing agency of Canada. It provides mortgage loan insurance, conducts housing research, and offers various housing-related programs. One of its primary functions is to insure mortgage, making it easier for Canadians to purchase homes with lower down payments. CMHC mortgage insurance is a well-known product that many Canadians rely on when securing their home financing.


The Apartment Construction Loan Program (ACLP)

The Apartment Construction Loan Program is one of CMHC’s initiatives aimed at addressing the shortage of rental housing in Canada. This program provides low-cost loans to developers for the construction of new rental housing projects. The goal is to increase the supply of affordable rental units, thereby improving housing affordability for Canadians.


Key Features of the ACLP

  • Low-Cost Financing: The ACLP offers competitive interest rates, which are often lower than those available through traditional financing options. This makes it more feasible for developers to undertake rental housing projects.
  • Extended Amortization Periods: Home loans under the ACLP can have amortization periods of up to 50 years, which helps to lower the monthly debt servicing costs for developers. This, in turn, can translate into lower rents for tenants.
  • High Loan-to-Cost Ratio: CMHC can finance up to 95% of the cost of a rental housing project, reducing the amount of equity that developers need to invest upfront.


  • Flexible Terms: The program offers flexible terms to accommodate different types of rental housing projects, including affordable housing, mixed-use developments, and market rental units.

Eligibility Criteria

To qualify for the ACLP, developers must meet several criteria:

  • Project Type: The project must be a new construction of rental housing. It can include affordable units, market rental units, or a mix of both.
  • Location: The project must be located in Canada. CMHC prioritizes projects in areas with high rental demand and low vacancy rates.
  • Affordability: Projects that include a significant proportion of affordable units are given priority. Affordable units are typically defined as those with rents at or below 80% of the median market rent for the area.

Benefits to Developers and Communities

The ACLP offers numerous benefits to both developers and the broader community:

  1. Increased Housing Supply: By providing favorable financing terms, the ACLP encourages the development of new rental units, helping to alleviate housing shortages in many Canadian cities.
  1. Affordability: The focus on affordable rental units ensures that more Canadians have access to housing that they can afford, which is particularly crucial in high-cost markets.
  1. Economic Stimulus: Construction projects funded through the ACLP create jobs and stimulate local economies, contributing to overall economic growth.
  1. Sustainable Development: CMHC emphasizes sustainable and energy-efficient building practices in its funding criteria, promoting environmental sustainability in new developments.

The Impact of the ACLP

The ACLP has had a significant impact on the housing Canada market. By facilitating the construction of new rental units, the program helps to stabilize rental prices and increase housing availability. This is particularly important in urban centers like Toronto and Vancouver, where demand for rental housing far outstrips supply. The ACLP not only provides home mortgages and home financing options but also encourages Canadian lender mortgage and stimulates mortgage Canada growth, thereby fostering a more robust housing market. 



The CMHC Apartment Construction Loan Program is a vital tool in addressing the rental housing shortage in Canada. By offering low-cost, flexible financing options, home loan, CMHC loan Canada, Canada loan, and mortgages, CMHC supports developers in creating new rental housing that meets the needs of Canadians. As housing affordability continues to be a pressing issue, programs like the ACLP play a crucial role in ensuring that all Canadians have access to safe, affordable housing.

For more information about the CMHC and its programs, visit If you’re a developer interested in the ACLP or other CMHC initiatives, contact us today to learn how we can help you bring your project to life and contribute to the future of housing in Canada. Stay updated on the latest developments with the ACLP and other housing initiatives through Canada Mortgage and Housing Corporation news.

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