Multi-Unit Residential Loan Program

This program currently closed. Please visit Housing Development Challenge.

The Multi-Unit Residential Loan Program provides a financing program for property developers which will assist in the construction of multi-unit residential developments on PEI. A multi-unit development consists of 2 or more units.

Do I qualify?

Eligible applicants include, but are not limited to:

  • Community Housing sector (e.g. non-profit housing organizations and rental co-operatives);
  • Private entrepreneur/builder/developer

Property Management Experience: applicants will be required to exhibit satisfactory experience in operating a housing property of similar type and size (in lieu, a formal property management contract with a professional third party firm).

Credit and Repayment History: at least break even cash flow over past five years with excellent credit and repayment history.

Construction Management Experience: must have successfully completed a similar project on time and within budget. Alternatively, proponents must enter into a fixed price contract with a general contractor who has experience building projects of similar size, cost, building form and construction type in the same market area. Proponents must have a demonstrated ability to withstand unexpected increases in construction cost.

For newly formed groups, alternate covenants, collateral and mitigation may be considered.

Financial Viability: Borrowers must demonstrate:

  • The financial viability of the proposed project itself, as well as capacity to deal with development risks such as cost over-runs and delays in construction.

Does my proposed project qualify?

Eligible property types and sizes will include:

  • Construction of new multi-unit rental housing consisting of 2 or more units (owner occupied is not permitted).
  • Use is Residential only.
  • Standard apartments. Excludes Retirement, Long-term care, Student housing Single Room Occupancy facilities and supportive housing.


  • Projects will be expected to meet the requirement that 10% of units within the project meet or exceed the local accessibility standards as prescribed by the Municipality, or in the absence of the aforementioned, the accessibility requirements of the 2015 National Building Code.

Financing Criteria

Maximum Loan to Cost/Value:

  • Loan authorizations will be up to a maximum of $4M.
  • For new construction, up to a maximum of 90% loan to value will be considered.
  • For renovations, up to a maximum of 80% of loan to value (improved value) will be considered.

Interest Rate on Loans:

  • 4% fixed interest rate for up to a 10 year term amortized over 25 years (30 years on exception in rural areas).
  • Loan may be prepaid at any time, without penalty.

Loan Repayment:

  • New Construction:
    • Repayment amortization period of up to 25 years (30 years on exception in rural areas);
    • Interest only payments financed by the loan during construction through to occupancy permit; and
    • Principal and interest payments beginning 3 months from substantial completion documented from a qualified architect/engineer on PEI.
  • Renewals:
    • Repayment amortization period of up to 25 years;
    • Interest only payments to completion of repairs (maximum 12 months); and,
    • Principal and interest from substantial completion from a qualified architect/engineer on PEI.

Minimum Debt Coverage Ratio Requirements: 

  • 1:1 required at a minimum


  • The loan may be fully advanced during the construction and/or repair/renewal period supported by an independent verification report (ie. Architect/engineer).

Security Type

  • First position mortgage is required.
  • Unlimited personal guarantees.

Reserve Requirements

  • None required.

Covenant/ Guarantee Requirements

  • The borrower and guarantor must provide their covenant/guarantee for 100% of the loan for deficiency after enforcement of security.

How do I apply?

Complete and submit an application and relevant business plan and projections to an account manager with Finance PEI. The account manager will conduct and interview with you to discuss the business proposal and the next steps to determine eligibility.

Where can I find more information?

If you have any further questions, they may be directed to:

Jeff Ready, Senior Financial Analyst
Finance PEI

94 Euston Street, 2nd Floor
PO Box 1176 Charlottetown, PE
Phone: (902) 368-6435
Fax: (902) 368-6255

Published date: 
January 16, 2023
Finance PEI

General Inquiries

Development Lending and Property Management
2nd Floor, 94 Euston Street
Charlottetown, PE   C1A 7M8

Phone: 902-368-6200
Fax: 902-368-6255