CMHC refinancing unlocks nearly $1 million in equity for experienced BC developer

Amount: $4,200,000

Lender: Non-bank lender

Location: Vernon, BC

Goals achieved: Additional leverage, lower costs

Amortization: 45 years

Loan-to-cost: 94.5%

When a fellow Lakepoint prospect mentioned us to a seasoned real estate developer in their network, we were grateful for the introduction. The Borrower had more than two decades of development and property management experience under their belt and a clear objective in mind: free up equity from a stabilized rental property to deploy into new projects. The existing financing, originally arranged with a bank lender to fund the construction of the asset, had served its purpose. But conventional takeout options simply weren't going to unlock the kind of capital the Borrower needed to keep their pipeline moving.

That's where CMHC-insured financing came into the picture. For multi-residential properties that meet program criteria, CMHC insurance opens the door to longer amortizations, higher loan-to-value ratios, and pricing that conventional commercial mortgages can't match. It's a powerful tool, but it's also a structured process with specific rules, and getting the most out of it requires knowing which lenders to approach and how to position the file.

We prepared a thorough Request for Financing, ran a competitive process across our lender network, and brought in two formal offers. Then came the curveball. One of the lenders, after issuing a commitment, was unable to deliver it in a timely manner. That is genuinely rare in this market. Fortunately, because we'd run a competitive process from the outset, we already had a relationship with another lender who had expressed strong interest during the initial outreach phase. We pivoted quickly, kept the file moving, and brought the deal home with a non-bank lender who understood the asset and the program inside out.

Equity unlocked: The Borrower walked away with nearly $1 million in equity to redeploy into other projects, after considering Lakepoint's engagement fee.

Long amortization secured: A 45 year amortization on the $4.2 million term loan, materially improving cash flow and supporting the Borrower's ability to carry additional projects.

Process resilience: Despite the challenges experienced partway through (an outcome that could have derailed the timeline entirely), we eventually closed on terms that fully met the Borrower's objectives.

This was our second CMHC-insured engagement with this Borrower, following a similar mandate we'd completed for a smaller property in the BC interior just a couple of months earlier. Repeat work is the highest compliment a client can pay an advisor, and we appreciate the continued trust.

If you own a stabilized multi-residential property and you're wondering whether there's more equity in it than your current lender is willing to acknowledge, we'd be happy to take a look. Sometimes the answer is no. Often, with the right program and the right lender, the answer is yes by a meaningful margin.