Risk & DD | Financing
Financing a Joint Venture Multiplex
A JV does not get its own credit. Lenders look through the structure to the actual sponsors, the actual builder, and the actual covenants. This page covers the lender tiers, what each tier wants, and when CMHC MLI Select becomes reachable.
Lender Tiers and Loan-to-Cost
Schedule I Bank (Big 5)
70–75% LTCCovenant: Strong sponsor required, full personal guarantees, recourse
When it works: Established sponsors with completed projects and strong personal balance sheets
BC Credit Union
70–80% LTCCovenant: Recourse, often more flexible on JV structures
When it works: Smaller deals with local sponsors and defensible budgets
Mortgage Investment Corp (MIC)
75–85% LTCCovenant: Higher rate, faster, less paperwork; recourse
When it works: Bridge during permitting or when speed beats cost
CMHC MLI Select
85–95% LTCCovenant: Up to 50-year amortization, lower premium, scoring system
When it works: 5+ unit purpose-built rental, JV with credible GP and operator
Private Lender / Mezz
Top-up to 90%+ LTCCovenant: 12–18% rate, often shorter term, second-position
When it works: Plug a gap when senior debt will not stretch
CMHC MLI Select for JVs
CMHC MLI Select is the single highest-leverage financing tool for BC multiplex JVs. When the deal qualifies, it changes the math materially.
- ✓5+ self-contained units required for MLI Select eligibility
- ✓Up to 95% LTC, 50-year amortization, and lower premium for qualifying projects
- ✓Scoring system rewards affordability commitments, energy efficiency, and accessibility
- ✓JV partners must demonstrate credible operating capacity (GP or property manager)
- ✓Personal guarantees may still be required from active partners
- ✓Application timeline is 4–8 months — bake into the JV schedule
See CMHC MLI Select deep dive in the Build-to-Rent hub.
Best For
- ✓ Sponsors building a financing strategy before negotiating splits
- ✓ Capital partners checking that the assumed leverage is achievable
- ✓ Landowners understanding why their lot equity might be re-priced
Usually Fails When
- ✕ You assume CMHC will stretch a weak deal
- ✕ You skip the lender pre-screen before locking the JV structure
- ✕ Personal guarantees are not allocated explicitly in the JV agreement
What To Verify Before Spending Money
- → You have a real lender term sheet, not a hopeful projection
- → Personal guarantees are negotiated and reciprocal where appropriate
- → The capital stack works at the realistic LTC, not the optimistic one
Lender & CMHC Sources
Explore Your Lot's Joint Venture Potential
Enter any BC address to see what a multiplex JV could look like on this parcel — unit count, rough build cost, and what the land contribution might be worth.