CMHC Apartment Construction Loan Program (ACLP) in BC
A national CMHC program that lends directly on new rental apartments. Here is how it works for projects in British Columbia.
The short answer
The Apartment Construction Loan Program is a direct CMHC loan that funds eligible rental projects from construction through to stabilized operations. It offers up to 100 percent loan to cost on residential space, up to a 50 year amortization and a fixed rate locked in at first advance, in return for an affordability commitment.
| Term | What CMHC states |
|---|---|
| Project size | At least 5 rental units and a loan of at least 1 million dollars |
| Loan to cost | Up to 100 percent residential, up to 75 percent non residential |
| Amortization | Up to 50 years |
| Interest rate | Fixed, locked in at first advance |
| Affordability | At least 20 percent of units at or below 30 percent of median family income for at least 10 years, or rents set through approved affordable housing programs |
What is the Apartment Construction Loan Program?
ACLP provides low cost funding to eligible borrowers during the riskiest phase of development: construction through to stabilized operations. It is a direct CMHC loan, not insurance on another lender's loan.
There are three streams: standard rental housing, seniors rental housing (independent living), and student housing.
Who qualifies
Eligible borrowers include for profit developers, non profit developers and other levels of government. The project needs at least 5 rental units, and the loan needs to be at least 1 million dollars.
CMHC lends up to 100 percent loan to cost for residential space and up to 75 percent loan to cost for non residential space. The non residential component cannot exceed 30 percent of total gross floor space nor 30 percent of total cost.
How the loan is structured
The loan carries up to a 50 year amortization and a fixed interest rate locked in at first advance.
- During construction, interest only payments are financed by the loan.
- From occupancy permit until 12 consecutive months of stabilized effective gross income, the borrower pays interest only.
- From stabilization to the end of the term, payments are principal and interest.
The affordability requirement
Every project has to meet one of two affordability options:
- At least 20 percent of units with rents at or below 30 percent of the median total income of all families in the subject market, for at least 10 years.
- Rents established through approved affordable housing programs.
ACLP versus MLI Select
ACLP is a direct loan from CMHC that runs from construction through to stabilization. MLI Select is mortgage loan insurance on a loan made by an approved lender, and on a ground up project it usually sits behind a separate construction loan, as explained on MLI Select for new construction.
Both reward affordability, but they measure it in their own ways. For how MLI Select scores it, see MLI Select affordability points.
ACLP in British Columbia
On January 23, 2025, British Columbia and CMHC signed the ACLP BC Builds Collaboration Agreement. How the provincial program works on its own is covered on BC Builds rental supply program financing.
Canadian Commercial Mortgages arranges financing in British Columbia only. For BC rental projects we look at ACLP alongside conventional construction financing, and you can test a budget first with the construction loan calculator.
How to apply and how long it takes
Selected applications receive a conditional approval within 30 days of a complete submission, and underwriting can take up to 60 days.
On BC projects we package the file and work with CMHC through the process. Approval is CMHC's decision, and a complete submission is the part we can control.
Source: CMHC, Apartment Construction Loan Program, standard rental housing. CMHC page published November 6, 2024. Checked October 2026. Program terms change; confirm current terms before you rely on them.
ACLP questions.
Related reading
Let's fund your next deal
Send the site, the unit count and the budget. A senior broker will tell you whether ACLP fits your BC project, usually the same day.