What is a key benefit of a CMHC Insured Multi-family Loan?

A key benefit of a CMHC Insured Multi-family Loan is that it reduces the interest rate for qualified borrowers. This type of loan provides insurance against default, which lowers the risk for lenders. As a result, lenders can offer reduced interest rates to borrowers who meet certain qualifications. This is a significant advantage for those looking to finance multi-family properties, as lower interest rates can lead to significant cost savings over the life of the loan.

The other options describe scenarios that do not align with the nature of CMHC Insured loans. For instance, purchasing a property outright without financing is not related to the loan structure itself. Borrowing without collateral is also not applicable in this context, as multi-family loans typically require the property itself to serve as collateral. Lastly, while a simplified closing process may occur, it is not the primary benefit of this loan product. The primary advantage remains the opportunity for reduced interest rates, making option B the most accurate.