Canada, like many other countries, has an aging population. What’s more, increased life expectancy, changing family dynamics, increased affluence, more technically savvy seniors and a greater desire for a healthy, active lifestyle are trends that are affecting both the volume and type of senior housing required.
Retirement home operators are responding to the challenge by transforming their approach and providing home environments that meet seniors’ varying needs – from confined housing spaces to housing concepts with continuum of care, larger personal living spaces, access to technology and interactive environments with more access to leisure and community involvement.
What can lenders do?
Retirement home operators are appropriately catering to the changing needs of Seniors. So how can Mortgage Lenders do their part? To start, offering a range of competitive short- and long-term financing solutions can help operators address seniors’ evolving circumstances and preferences.
The two most common sources of financing available are Conventional and CMHC Insured. While both serve a purpose and having options is important, the CMHC approach will provide a lower mortgage rate by as much as 1%, in addition to higher leverage (with loans as high as 85% LTV). CMHC financing also offers beneficial refinancing options such as Top Up pari passu first and second mortgages as well as easy transferability in the event of a future property sale. Assured competitive renewal terms at time of maturity is another benefit to borrowers.
How can MCAP assist?
As Canada’s largest mortgage finance company, MCAP is very well positioned to provide a range of mortgage solutions. We have access to a large pool of competitive mortgage funds to finance loans from $5 million to over $100 million nationally. Our teams of highly experienced experts from Origination, Investment Management, Funding and Servicing make the total loan process easy and efficient.
In fact, our Mortgage Originators include former long-term senior CMHC officials such as Vito Campisi, T.J. Lee and Jacques Pelletier, all of whom are ready to provide advice, market intelligence, data points and guidance to help retirement home operators and developers access the financing they need. Once the best financing solution has been determined, we work closely with our clients, managing the entire loan application process from the initial application to receipt of the Certificate of Insurance to the closing of the loan. Our team of experts then continues to remain available over the term of loan up to final repayment.
This level of expertise, and dedication to consistently deliver for our clients, is why MCAP is the preferred financing partner for many of Canada’s largest retirement home operators. And it’s why MCAP enjoys a loyal clients base and a high volume of repeat business.
Talk to a member of our Origination team today to find out more about how we can assist in the continued growth of your business.