Common Mistakes Investors Make When Pursuing CMHC Financing

Josh Perez • August 21, 2024

When it comes to navigating the complexities of CMHC (Canada Mortgage and Housing Corporation) financing, one of the key strategies that can offer significant benefits is the partnership approach. By pooling resources and partnering with individuals whose strengths complement each other, investors can often access larger assets that yield better returns. However, this approach, while advantageous, can also lead to certain pitfalls if not executed properly.

"Combining resources and people that complement each other in a project can often help you get into some larger assets that provide better returns."

The Importance of a Complete Partnership

One of the most common mistakes we see involves the boots-on-the-ground or active partners not fully completing their partnership roles during the offer process. These active partners may excel at finding and sourcing deals but might not bring the necessary capital, liquidity, or net worth to the table. When these crucial financial components are missing or underdeveloped, it becomes challenging to present a comprehensive financing package to secure a letter of interest or a discussion paper from the lender.


This incomplete partnership can cause several issues:

  1. Deals Falling Apart: Without a strong, complete partnership, deals can crumble during the negotiation phase because the investors are uncertain about financing terms or closing dates.
  2. Reduced Leverage in Negotiations: When the financial picture isn’t fully secured, investors may have less leverage in negotiations, leading to less favorable terms.
  3. Delays in Application Processing: If all investors and necessary resources aren't in place early on, the application process can be delayed, causing setbacks in the overall project timeline.


Proactive Solutions for Investors

To avoid these common mistakes, I often recommend that investors involve potential partners early in the process. Bringing all potential investors into the conversation early on allows us to present a full picture to the lender when we reach the offer stage. Here’s how you can ensure a smooth CMHC financing process:

  • Early Involvement of Investors: Invite your potential investors to join a call where we can discuss sample deals and outline what a successful investment might look like. This early involvement ensures that everyone is on the same page and that we can begin intake as soon as possible.
  • Present a Unified Front to Lenders: By having all partners and their resources ready to go, we can present a cohesive and strong financing package to lenders, which increases the likelihood of securing favorable terms.
  • Streamline the Offer Process: With all parties involved from the start, we can expedite the application process and hit key milestones more efficiently, reducing the risk of delays.


By taking these proactive steps, investors can mitigate the risks associated with incomplete partnerships and improve their chances of success in securing CMHC financing. Remember, the key is to ensure that all aspects of the partnership are fully developed and aligned before entering the offer process.



If you have any questions or need further guidance on CMHC financing, feel free to reach out. We're here to help you navigate the complexities and maximize your investment opportunities.

Josh Perez
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How to Finance a Spousal Buyout After Separation or Divorce

By Josh Perez • August 19, 2026
Mortgage Options During Divorce or Separation: What You Should Know If you’re going through—or considering—a divorce or separation, you may not realize that there are mortgage solutions specifically designed to help one party keep the home . For many people, the family home is their largest asset and where most of their equity is tied up. In situations like this, a spousal buyout program can allow one person to refinance the property and buy out the other party’s share—often up to 95% of the home’s value . This option can work whether you want to keep the home or your former partner does. What Is the Spousal Buyout Program? The spousal buyout program is a refinancing option that allows one owner to purchase the other owner’s share of the property as part of a separation or divorce settlement. In some cases, it can also be used to pay off jointly held debts, as outlined in a legal agreement. Below are some of the most common questions about how the program works. Is a finalized separation agreement required? Yes. Lenders require a signed and finalized separation agreement that clearly outlines how assets and debts are to be divided. This document is essential for approval. Can the funds be used for renovations or personal debts? No. Funds from a spousal buyout can only be used to: Buy out the other owner’s share of equity Pay off joint debts specifically listed in the separation agreement They cannot be used for renovations, personal loans, or unrelated expenses. How much equity can be accessed? The maximum amount available is the amount required to: Buy out the other party’s agreed-upon share of equity Pay off any joint debts listed in the agreement This amount cannot exceed 95% loan-to-value . What is the maximum loan-to-value allowed? The maximum loan-to-value is the lesser of : 95%, or The remaining mortgage balance plus the required buyout and joint debt payout The property must be the primary owner-occupied residence . Do all parties need to be on title? Yes. All individuals involved in the buyout must currently be registered on title. Your solicitor will confirm this through a title search. Does this only apply to married or common-law couples? No. While commonly used for married or common-law couples, the program may also apply to siblings or friends who jointly own a property and need one party to exit the mortgage. These cases are typically reviewed on an exception basis and require insurer approval. If no separation agreement exists, the purchase contract must clearly outline the buyout terms. Is a full appraisal required? Yes. A physical, on-site appraisal is required to confirm the property’s value before the mortgage can be finalized. Final Thoughts This overview covers some of the most common questions about mortgage options during separation or divorce, but every situation is different. Working with an independent mortgage professional gives you access to multiple lenders, specialized programs, and unbiased advice—so you can clearly understand your options and choose what’s best for your future. If you’re navigating a separation and need guidance around keeping or selling the home, feel free to connect anytime. All conversations are handled with discretion and confidentiality, and I’d be happy to walk you through your options.

How to Legally Assign a Construction Mortgage

By Josh Perez • August 12, 2026
Why More Mortgage Options Matter—Especially for Assignment Purchases One of the biggest advantages of working with an independent mortgage professional is access to choice. Instead of being limited to one lender and one set of products, mortgage brokers work with multiple lenders—each with different guidelines, risk tolerances, and mortgage solutions. That flexibility becomes especially valuable when your situation doesn’t fit neatly into a “standard” box. A great example of this is purchasing new construction through an assignment contract . Why Assignment Purchases Can Be Challenging Assignment purchases are often viewed as higher risk by traditional lenders. Rather than declining these deals outright, many lenders quietly make them difficult by adding layers of conditions, restrictions, or uncertainty. This can lead to delays, frustration, or financing falling apart late in the process. The Good News There are lenders—available exclusively through the broker channel —that have clear, favourable policies for assignment purchases. With the right lender and proper planning, these transactions are absolutely doable. Typical Financing Requirements for Assignment Purchases While every situation is unique, many lenders that allow assignment financing look for the following: Standard purchase qualification, including income verification, credit, and down payment Assignments accepted at either the original purchase price or current market value Minimum 620 credit score , with no prior bankruptcies or consumer proposals The full down payment must come from the purchaser —seller incentives cannot be used Required Documentation To secure financing, lenders typically require: The original purchase agreement signed by all parties The MLS listing (if applicable) The assignment agreement signed by the builder, original purchaser, and new buyer Any side agreements outlining changes to the purchase price A full appraisal to confirm value This list isn’t exhaustive, but it highlights that while assignment purchases require more coordination, they are very achievable with the right lender and guidance. Final Thoughts Assignment contracts can open doors to great opportunities—but only if your financing supports the transaction. This is where access to multiple lenders and specialized policies makes a real difference. If you’re considering purchasing new construction through an assignment, or if you’d like to explore more traditional purchase options, feel free to connect anytime. I’d be happy to walk you through the mortgage products available and help you choose an option that doesn’t limit your financing possibilities.