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11 Oct

Legalization of Cannabis & Mortgage Lending

General

Posted by: Trish Pigott

**How will the Cannabis Act affect mortgage lending??**

The legalization of Cannabis is set to take place on October 17th. We just received confirmation that CMHC will continue to insure mortgage loans for residential properties where cannabis was previously grown and/or will be legally grown. At this time we only have one lender who is willing to loan on such properties and with that loan comes a 1% premium on the interest rate, as well as, the client must pay the CMHC insurance premium no matter the downpayment amount. Regardless if it is a previous grow-op or a legalized grow-op the main reason lenders don’t lend on such properties is due to the high level of humidity required to grow, creating mold issues. We our in process of contacting each of our lenders on this to see if any new policies will be coming down the pipe with the impeding legalization.

This is a confusing topic, so please do not hesitate to contact us with questions!