Owning an apartment building in Calgary isn’t just a dream; it’s a solid, income-generating asset in one of Canada’s most landlord-friendly provinces. But for most first-time investors, the financing process can be intimidating.
This blog is your crash course in funding your first 12-unit multi-family property in Calgary with smart comparisons between traditional loans and CMHC-insured options.
Step 1: Understand Your Objectives
Before you talk to a bank, figure out:
- How much cash do I have?
- Am I holding for long-term income or short-term appreciation?
- Am I willing to wait for CMHC approval if the deal is better?
Traditional Financing: The Fast Lane
Best for: Investors with significant capital and short-term project goals
Features:
- Up to 75% Loan-to-Value (LTV)
- Shorter amortization = faster principal paydown
- No mortgage insurance required
- Faster approval timelines
What to Watch For:
- Cash flow can be tight with high payments
- Lenders often require personal guarantees
- Limited to your capital stack
CMHC MLI Select: The Power Move
Best for: Long-term investors focused on cash flow and scalability
Features:
- 95% LTV possible (only 5% down)
- 40–50 year amortization lowers monthly costs
- Low interest rates
- Supports affordability and energy efficiency goals
Things to Keep in Mind:
- Longer application process (allow 60–120 days)
- Strict qualifying metrics: DSCR, affordability targets, etc.
- Insurance premium adds to the loan balance
Why Calgary?
Alberta offers:
- No rent control = rent flexibility
- Strong economic momentum = rising rents
- Investor-friendly laws
- Lower real estate prices compared to the GTA or Vancouver
In other words, it’s a great place to grow your portfolio, especially if you start with smart financing.
Key Takeaway
Choosing between traditional and CMHC financing depends on your financial situation, risk tolerance, and investment timeline. The key is to do the math, compare multiple lenders, and align your loan strategy with your investment goals.
At Green Casa, we don’t just manage your property; we help guide you from acquisition to optimization. Reach out today and let’s talk about your first (or next) Calgary apartment project.
