Citifund arranged an 80% loan to cost CMHC insured construction financing under the MLI Select program for the development of a 6-storey rental apartment building in the heart of downtown Victoria. The loan was structured with a 24-month interest only construction term at a fixed 4.15% rate, and a 60-month amortizing term at 3.95% rate (seven years fixed including construction). The loan was funded in a single advance into an interest-bearing escrow account to allow for the fixed rate pricing. At the time of funding, the escrow funds were held in a term deposit account at 3.0% per annum. This structure allowed the borrower to limit the effective construction interest rate to 1.15% (4.15% less 3.0%).