Education for Canadian multi-family investors
CMHC MLI Select
financing, explained.
Understand how CMHC MLI Select works and the potential benefits for eligible multi-family projects.
Mortgage loan insurance for eligible multi-unit rental housing.
CMHC MLI Select is a mortgage loan insurance product designed to encourage the creation and preservation of affordable, accessible and climate-compatible rental housing in Canada.
The program uses a points system. Eligible projects earn points through commitments to affordability, energy efficiency, accessibility, or a combination of the three. Higher point levels can provide access to greater financing flexibility, subject to lender and CMHC approval.
An important distinction: CMHC insures an eligible mortgage. An approved lender provides the financing. MLI Select is not a grant, a property investment, or an automatic approval.
- HOW MLI SELECT WORKS
A point-based path to
potential financing flexibility.
01
The property makes eligible commitments
A project pursues qualifying affordability, energy-efficiency or accessibility outcomes under the current program rules.
02
The commitments earn points
The total point level determines the maximum insurance flexibilities the project may be considered for.
03
The complete application is underwritten
The lender and CMHC review the property, income, valuation, borrower strength, experience, guarantees and supporting documentation.
MLI Select can apply to eligible new construction and existing properties. Most eligible projects require at least five residential units.
— POTENTIAL PROGRAM BENEFITS
Why investors and builders pay attention to MLI Select.
For projects that earn sufficient points and satisfy full underwriting, MLI Select may provide greater leverage, longer amortization and other insurance flexibilities than conventional commercial financing.
Up to
95%
LOAN-TO-VALUE OR LOAN-TO-COST FOR ELIGIBLE RESIDENTIAL COMPONENTS
Up to 50
YEARS OF AMORTIZATION AT QUALIFYING POINT LEVELS
1.10
MINIMUM DCR FOR QUALIFYING STANDARD RENTAL HOUSING
These are maximum program flexibilities—not promises or quoted financing terms. Actual results depend on points, property performance, borrower strength, valuation, lender requirements and CMHC approval. Program rules can change.
How points are earned
Three pillars shape the application.
A
Affordability
Eligible rent commitments for a required portion of units over a defined period can earn points.
E
Energy efficiency
Verified improvements in energy use and greenhouse-gas performance can contribute to the score.
A
Accessibility
Eligible visitability, universal-design and accessibility measures can contribute additional points.
- WHO MAY QUALIFY?
The property and the borrower both matter.
A strong point score is only one part of the application. The property must support the proposed debt, and the borrowing group must satisfy the applicable financial, experience and management requirements.
Qualification may consider:
- Property income, expenses, value and debt coverage
- Borrower net worth, liquidity and credit
- Relevant ownership or management experience
- Guarantees, reserves and risk-mitigation requirements
- Evidence supporting the project's point commitments
Understanding cash flow
What could remain after expenses and financing?
Purchase price and rent do not tell the whole story. Operating expenses, down payment, interest rate and amortization all affect the cash an investor may receive—or need to contribute—each month.
Single-family vs. multi-family
Use adjustable numbers to compare one rental unit with an eight-unit building.
- Monthly rental income
- Operating expenses
- Estimated mortgage payment
- Monthly and annual cash flow
Get a clear introduction to MLI Select and multi-family investing.
Clear education and a guided qualification process for Canadians exploring multi-family real estate and CMHC MLI Select.
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