Changes to CMHC's MLI Select program in the last year have "reduced the attractiveness" of the agency's multi-unit financing, relative to conventional construction financing. So says Versabank CEO David Taylor, who's seen applications for the product "dry up" at his institution.
"Until earlier this year, there was enough demand for CMHC multi-unit financing," Taylor told MLN in a recent interview. "[Since] CMHC changed the rules...our real estate developers don't find it attractive anymore to pay CMHC fees."
He points to four CMHC rule shifts in particular:
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