CMHC now allows refinancing of existing owner occupied properties to 95 % Loan to Value. The borrower is now free to use the money as he/she wishes and not just for property improvements Under the new refinance product, the CMHC premium is payable on the increased loan amount only. ( provided the original mortgage is CMHC insured ) Where property improvements are proposed, CMHC will now permit the "as improved" value to be used as the lending value.

This product is available for owner occupied properties only up to a four unit building There is a maximum of $200,000 in additional funds that may be advanced provided the loan to value does not exceed 95 % Normal qualification criteria apply.

This product may not be used as a default management tool The amortization period of the loan on which a full, new premium is being paid may be increased to 25 years or the remaining economic life of the property The actual mortgage Lender will use its judgement to determine the "as is" value and the "as improved" value ( if applicable ).

Appropriate tools to make this determination may include: the original purchase price recent sales of other properties in the neighbourhood the cost and likely value of improvements ( if applicable ) general knowledge of the local housing market. If the proposed lending value is deemed too high, a CMHC Residential Underwriter will contact the lender with options for proceeding with the loan, which may include a reduced lending value or loan amount