Condo financing has specific rules that don't apply to freehold purchases. CMHC eligibility by building, investor condo lender appetite, and pre-construction deposit financing all require a broker who knows the condo market.
The core mechanics of getting a mortgage are the same for a condo as for a house: you qualify based on income, credit, down payment, and the property's value. Where condo financing diverges is in building eligibility, lender appetite for certain property types, and the specific structure of pre-construction purchase financing.
CMHC and private mortgage insurers (Sagen, Canada Guaranty) have criteria that govern which buildings are eligible for insured mortgages. Buildings with very high investor concentration, active structural defect litigation, or severe financial distress may be flagged as ineligible. If you're buying with less than 20% down, your financing requires mortgage insurance — and if the building isn't eligible, your financing doesn't work for that unit. A broker who regularly closes condo deals will know which buildings have eligibility concerns and can flag this before you make an offer. verify with current sources
Lender appetite for investor condos (units not occupied by the owner) differs from owner-occupied financing. Rental income is counted differently in the qualification calculation. Some lenders apply rental income at full value; others apply a haircut. The stress test rate applies to both owner-occupied and investor mortgages, but qualification ratios and amortization options can differ. A broker who works regularly with investor clients knows which lenders offer the best terms for rental condo purchases and how to structure the application to maximize the rental income credit.
Pre-construction purchases involve a deposit schedule spread over the construction period, then a mortgage at registration. The mortgage rate environment at registration may be very different from when you signed the purchase agreement. A broker with pre-construction experience can advise on rate hold options, the timing of mortgage application relative to occupancy and registration dates, and how to structure financing to manage the transition from occupancy fees to mortgage payments at registration.
Ask how many condo-specific mortgage closings they've completed in the past year. Ask whether they've ever had a deal fall apart due to building eligibility issues, and how they identified and managed the problem. Ask specifically about their pre-construction experience if that's what you're buying. A broker who has closed 100+ condo mortgages has seen the building-specific issues that occasionally kill deals — and knows how to avoid them before you're committed to a purchase.