Retirement Residences


The Retirement Residence sector has become extremely competitive.  In addition to a well-developed business strategy, owners also need a well-structured financing strategy to compete and thrive.


With significant transaction experience and a solid reputation with Lenders and CMHC, IC Funding can help you define your financing strategy and obtain the capital you need for your Retirement Residence project. We have the industry benchmarks to negotiate on your behalf to obtain an optimum loan structure for:

  • Construction and permanent financing
  • Purchase financing
  • Refinance for equity for a planned facility.
  • Asset sale


Conventional Financing


While the interest rate is higher than CMHC financing, the benefits a conventional financing structure typically provides include:

  • 1. Higher loan amount
  • 2. Lower borrower equity requirement
  • 3. More flexibility of terms


Even with a higher interest rate, this structure may be more appropriate for your Retirement Residence project.


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.


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


Rate Averaged Mortgage Structure


An alternative that takes advantage of the benefits of both CMHC and conventional financing is our Rate Averaged Mortgage (RAM) structure. Borrowers can maximize the interest rate benefits of a CMHC insured mortgage with the loan amount benefits provided by conventional financing. Our RAM Program provides:

  • Maximum loan amounts
  • Lower overall interest rate
  • Possible reduction in personal covenant requirements


Our RAM Financing option is available for:

  • Refinance and mortgage renewals
  • Conversion of construction financing to structured permanent mortgage financing