Long Term Care and Government Funded Facilities


The Long Term Care (LTC) sector is one of constant change, thanks to shifting provincial requirements and unique funding restrictions. While these changes and challenges have increased the complexity of project funding, IC Funding remains one of the industry’s most trusted commercial financing partners.


IC Funding helps borrower clients navigate the financing process based on our in-depth understanding of:


  • Government funding guidelines and agreements
  • Project development cost models and requirements
  • Per diem operating costs
  • Holdback requirements for income achievement and LEED compliance


Conventional Financing

A conventional financing structure typically provides:

  • 1. A higher loan amount
  • 2. Lower borrower equity requirement
  • 3. More flexibility of terms and conditions


IC Funding offers one of the industry’s leading Long Term Care conventional lending programs. This program is based on an innovative cash flow approach that maximizes the loan amount through analysis of your facility’s net operating income.


Our review of your project will quickly establish the:

  • Maximum loan available – often up to 90% of costs, subject to satisfying minimum debt service coverage requirements
  • Minimum equity requirement – short and long term
  • Maximum term length available – options ranging to 30 years


Our construction financing program has a number of benefits, including:

  • Reduced interest rate risk by forward fixing the rate during construction
  • Avoiding extra interest costs through a construction advance approach that is an alternative to advancing from escrow.
  • Longer certainty of financing by increasing the term length available to include the construction period.


CMHC Insured Financing

Obtaining CMHC insurance provides a borrower client with two primary benefits:

  • 1) a lower interest rate
  • 2) the ability to readily obtain financing at the time of mortgage renewal


IC Funding will make a direct application, negotiate and obtain an independent CMHC Certificate of Insurance on your behalf. This independent insurance enables the borrower to review a variety of financing options, instead of just one offered by a specific lender. IC Funding will identify the competitive interest rate, terms and conditions available in the market, fixed for terms of up to 30 years.


IC Funding remains in constant communication with senior executives at CMHC. This strong relationship has provided our team with a deep understanding of CMHC’s unique underwriting approach to the Long Term Care asset class. We know how to efficiently navigate the approval process and obtain the optimum loan amount, covenant requirements and hold back allowances available.


Interested in learning more about Long Term Care financing opportunities? We invite you to Contact Us to discuss your project.