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This paper summarizes a CMHC-focused underwriting process covering inputs, construction risk, financial modeling, and ongoing monitoring. Key elements include budget validation, contingency adequacy, pro-forma sensitivity analysis, and draw controls. The objective is consistency with insurer requirements while maintaining lender discipline on DSCR, debt yield, and documentation completeness.

CMHC Program Overview
l Insured construction and term financing objectives.
l Risk transfer mechanics and lender responsibilities.

Underwriting Inputs
l Rent rolls, market rents, and absorption assumptions.
l Operating statements and expense normalization.

Construction Risk Assessment
l Budget validation and contingency adequacy.
l GC experience, bonding, and schedule risk.

Financial Modeling
l Pro-forma development with sensitivity analysis.
l Stabilized DSCR and debt yield benchmarks.

Conditions and Exceptions
l Documentation completeness and third-party reports.
l Exception rationale with compensating factors.

Ongoing Monitoring
l Draw controls and budget-to-actual tracking.
l Covenant compliance and reporting cadence.