A complete breakdown of real costs — CMHC financing versus Capital Norvex — Ontario market, 2026 data.
Private financing is often said to cost too much. The real question is: what does time cost you? Land you have already acquired that sits idle generates no income. Meanwhile, taxes keep running, interest keeps running, and business opportunities pass you by. Our objective is not to be the cheapest option. Our objective is to let you move forward quickly, without that speed costing you more in the end.
We do not claim that private financing costs less.
We demonstrate that it does not necessarily cost more
when the full cost of the project is taken into account.
| Cost item | CMHC / Bank | Capital Norvex |
|---|---|---|
| Land — bridge carry 12 months (CMHC MLI Select approval: typically 6–18 months · conservative calculation basis: 12 months) | ||
|
Land carrying interest
$4.5M × rate × 12 months
|
$382,500 | $0 ✓ |
|
Land bridge rate
Bank: prime + spread · Norvex: construction starts immediately
|
8.5% | N/A |
| Cost item | CMHC / Bank | Capital Norvex |
|---|---|---|
| Construction interest — 50% average balance over 18 months | ||
|
Construction interest
$15M × rate × 50% avg. balance × 1.5 yrs
|
$534,375 | $1,350,000 |
|
Construction rate
CMHC MLI Select 4.75% · Norvex 12%
|
4.75% | 12% |
| Fees & premiums | ||
|
Arrangement / origination fee
CMHC: ~1% bank commitment fee · Norvex: 3%
|
$150,000 | $450,000 |
|
CMHC insurance premium
MLI Select: 3.92% × $15M · 75% LTV · 100 pts
|
$588,000 | $588,000 permanent CMHC refi, identical |
| Capital Norvex competitive advantage | ||
|
Contractor discount — Ontario
30-day certainty payment vs. CMHC 90-day draws — net off tender price
|
— | − $400,000 |
TOTAL gross costs (before tax deduction) |
$1,654,875 | $1,988,000 |
Capital Norvexfully deductible in the year paid.capitalized into the building's cost and recovered via CCA Class 1 (4% declining balance).$477,000 in tax deductions vs. $282,722 for CMHC — a $194,278 tax advantage.
| Summary | CMHC / Bank | Capital Norvex |
|---|---|---|
Total gross costs |
$1,654,875 | $1,988,000 |
ITA tax deduction (26.5%) |
− $282,722 | − $477,000 |
Net cost after tax |
$1,372,153 | $1,511,000 |
Effective real rate (after ITA) |
— | 8.82% |
|
Project completion / first rental income
Month of first occupancy
|
Month 31 | Month 19 |
Disclaimer and calculation assumptions: This document is produced for illustrative and comparative purposes only. It does not constitute legal, accounting, or financial advice. Figures are based on general assumptions applicable to the Greater Toronto Area (Brampton / Mississauga) market in 2026 and may vary based on specific project details, borrower profile, market conditions, and regulatory requirements.
Interest rates: The CMHC MLI Select rate of 4.75% is indicative. The actual bank rate depends on borrower credit profile, deal structure, and market conditions. The CMHC premium of 3.92% (100 points, 75% LTV) is calculated per the current MLI Select grid.
Tax deductions: Tax savings are based on a combined corporate tax rate of 26.5% (15% federal + 11.5% Ontario, general rate 2026). Eligibility for deductions under ITA s.20(1)(c), s.20(1)(e) and s.18(3.1) depends on the specific loan structure and the borrower's tax situation. Consult a licensed CPA for personalized advice.
Rental income: The net operating income (NOI) of $1,244,880 is based on a 95% occupancy rate, average rent of $2,800/month, and a 35% expense ratio on gross revenue. These assumptions are based on GTA rental market data 2025-2026 (CMHC Rental Market Report) and may differ based on exact location and property management.
Capital Norvex Inc. — Private mortgage financing, Montreal, Canada · capitalnorvex.com · This analysis was prepared by the Capital Norvex team for comparative presentation purposes only. All rights reserved © 2026.