New S61 Mortgage Prepayment Deadlines

20 December 2018

For a limited time, S61 co-ops can apply to pay out their high-interest Canada Mortgage and Housing Corporation (CMHC) mortgages without penalty. To do so, they will have to qualify for a loan from the private market where they will enjoy the benefit of lower interest rates. (Loan applicants will be asked for a current Building Condition Assessment (BCA).) After payout, co-ops may find their mortgage payments have decreased, although this will depend on whether or not—and how much—they also borrow for capital repairs to their property.

Although the co-op’s operating agreement ends when the CMHC mortgage is paid off, rent supplements continue for low-income households, usually until the date of the original operating agreement expiry. S61 co-ops that prepay their mortgage can continue to receive the Agency’s helpful reports on their finances by subscribing to our Annual Health Check service.

To date, CMHC has waived approximately $100 million in penalties on the payout of long-term non-renewable mortgages. Do not delay in applying since 2019-20 is the last year CMHC will offer this initiative. CMHC will accept applications during four successive rounds, as shown below. Take note of the deadlines below and head to CMHC’s website for more information. E-mail your questions to Help making an application is also available from CHF Canada.      

Application Round Opens

Application Round Closes

Payout Dates

December 5, 2018

February 1, 2019

June 3, 2019

March 1, 2019

April 30, 2019

September 3, 2019

June 3, 2019

July 31, 2019

December 2, 2019

September 2, 2019

October 31,2019

February 1,2020

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Plans in Action

The average co-op with an approved capital replacement plan tucks away more than $3,600 per unit in reserves each year--triple the 2007 amount. Does their future hold better windows? New kitchens? Savings mean more choices.