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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Deposit vs. Down Payment: Key Differences for Homebuyers

By Josh Perez • February 18, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.
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Is a 5% Down Payment a Mistake? Here’s the Unpopular Truth.

By Josh Perez • February 15, 2026
Discover why a 5% down payment isn’t always irresponsible. Learn when a low down payment is a smart financial move for Ontario homebuyers and when it’s a risk.