CMHC MLI Select Program: High-Leverage Multi-Family Investing in Canada
Understand the CMHC MLI Select program offering up to 95% financing and 50-year amortizations for Canadian multi-family investors.
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The CMHC MLI Select program represents one of the most powerful financing tools available for Canadian multi-family investors. This government-backed program offers extraordinary leverage—up to 95% loan-to-cost—with extended amortizations reaching 50 years. Understanding how MLI Select works helps investors access financing structures unavailable through conventional lending.
This guide is informed by an exclusive live presentation by top Canadian mortgage experts and developers Scott Dillingham, Christine Traynor, and Jennifer Champion, featuring real 2025–2026 deal examples that qualify for 95% financing with 50-year amortizations.
Understanding MLI Select
What this program offers investors.
Program Purpose
Government-supported rental housing.
CMHC MLI Select incentivizes:
Affordable rental housing development, Energy-efficient construction, Accessible housing creation, Rental housing preservation, and Multi-family investment.
Government backing enables terms impossible in conventional markets.
| Financing Feature | Standard CMHC | MLI Select (100+ Points) |
|---|---|---|
| Loan-to-value | Up to 85% | Up to 95% |
| Amortization | Up to 40 years | Up to 50 years |
| Recourse | Full recourse | Limited recourse |
| Fee treatment | Out of pocket | Can be rolled into loan |
Extraordinary Leverage
What 95% financing means.
MLI Select at maximum points provides:
Only 5% equity required for qualifying projects, 50-year amortization dramatically reducing payments, Limited recourse reducing personal risk, Premiums and fees included in financing, and Cash flow enhancement from longer amortization.
This leverage structure transforms multi-family investment economics. For context on how this compares to standard approaches, see our guide on financing multifamily properties in Canada.
The Points System
How to qualify for maximum benefits.
Earning 100 Points
Three qualification categories.
MLI Select awards points for:
- Affordability: Units priced below CMHC thresholds
- Energy Efficiency: Better insulation, systems, and sustainability
- Accessibility: Features enabling disabled resident access
Maximum benefits require accumulating 100+ points across categories.
Affordability Points
Rent commitment requirements.
Affordability points come from:
Committing percentage of units to affordable rents, Rents at or below CMHC local thresholds, Duration commitments for affordability, and Documentation and monitoring compliance.
Affordability commitments reduce achievable rents but enable financing benefits.
Energy Efficiency Points
Environmental considerations.
Energy points earned through:
Higher insulation values, Energy-efficient windows, heat pump systems, Solar readiness or installation, and Overall building performance.
New construction easily achieves energy efficiency points through design.
Accessibility Points
Inclusive housing features.
Accessibility points from:
Wider doorways, zero-step entries, Grab bar installation, Accessible bathroom design, and Unit adaptability features.
Accessibility features expand tenant pool while earning points.
Multifamily financing has different rules than residential — book a free strategy call with LendCity and we’ll show you exactly what you qualify for under CMHC or conventional programs.
New Construction Advantage
Why development projects dominate.
Design Integration
Building for points.
New construction advantages include:
Designing efficiency from start, Incorporating accessibility in plans, Achieving points more easily, Avoiding retrofit costs, and optimizing for program requirements.
Developers can design projects specifically for MLI Select qualification.
Existing Property Challenges
Retrofit difficulties.
Existing properties face challenges:
Costly retrofit requirements, Structural limitations, Lower achievable points, Economic feasibility questions, and More complex qualification.
New construction typically achieves better MLI Select outcomes.
Alberta Market Opportunity
Why this market combines well with MLI Select.
Provincial Growth
Economic expansion.
Alberta offers attractive fundamentals:
Strong population growth, Employment expansion, Relative affordability, Development-friendly environment, and Growing rental demand.
Economic growth supports multi-family investment.
Edmonton Focus
Capital city opportunity.
Edmonton specifically provides:
Growing population, Economic diversification, Strong rental fundamentals, Development activity, and MLI Select project viability.
Edmonton represents particularly attractive opportunity for MLI Select projects.
Project Examples
What deals look like.
Typical MLI Select projects in Alberta:
Purpose-built rental apartments, Mixed-use with residential, Mid-rise development, Affordable housing component, and Modern, efficient construction.
Understanding typical projects helps evaluate opportunities.
Apartment buildings require a different lending approach — schedule a free strategy session with us to understand your options before making an offer.
Real 2025–2026 Deal Examples Using 95% CMHC MLI Select
1. The Kensington – 20-Unit Purpose-Built Rental (Completion Early 2026)
- Total project cost: ~$9.1 million
- Financing: 95% CMHC MLI Select (points from affordability + energy efficiency)
- Minimum investor net worth: ~$2.16 million
- Minimum liquidity: ~$865,000
- Ideal for passive capital partners or full ownership
2. 8-Unit Stacked Townhome Projects (Multiple Completing 2026)
- Purchase/construction cost: $2.2M – $2.5M each
- Typical layout: 4 upper 3-bed/2-bath + 4 lower 1- or 2-bed legal suites
- Net worth required: $500K–$600K
- Liquidity required: $210K–$240K
- Perfect entry point for newer investors or joint-venture groups
Both project types are being built from the ground up to hit maximum MLI Select points—meaning investors put in as little as 5% of total cost.
Borrower Requirements
What investors need to qualify.
Qualification Criteria
Who can access MLI Select.
Borrower requirements include:
Multi-family project (5+ units minimum), Demonstrated experience or partnerships, Adequate equity contribution, Financial capacity verification, and Commitment to program requirements.
Specific thresholds to be aware of:
- Net worth: Greater of 25% of loan amount or $100,000
- Liquidity: Roughly 10% of project cost in cash, investments, or unused lines of credit
- Relevant real estate experience
These hurdles are exactly why most successful projects are done through partnerships or joint ventures—experienced operators bring the track record while capital partners bring equity and liquidity.
Experience Considerations
Track record requirements.
CMHC evaluates:
Development experience, Property management capability, Financial capacity, Team qualifications, and Partnership arrangements.
Inexperienced investors often partner with experienced developers.
Financial Requirements
What CMHC needs to see.
Financial verification includes:
Net worth documentation, Liquidity verification, Income and cash flow analysis, Debt capacity assessment, and Project feasibility analysis.
Thorough financial analysis required for approval.
Working with MLI Select
How to access the program.
Mortgage Professionals
Expert guidance essential.
Work with professionals who:
Understand CMHC programs, Have MLI Select experience, Can structure qualifying deals, Navigate application processes, and Maintain CMHC relationships.
Specialized expertise significantly improves outcomes. Explore commercial mortgage financing to connect with experienced professionals.
Application Process
How deals progress.
MLI Select applications involve:
Project proposal submission, Points calculation and commitment, CMHC review and feedback, Commitment letter issuance, Construction monitoring, and Final funding.
Process requires specialized knowledge and patience.
Development Partners
Building the right team.
Successful MLI Select projects require:
Experienced developers, Qualified architects, Specialized contractors, Property management capability, and Financial structuring expertise.
Team quality determines project success.
Investment Considerations
Evaluating MLI Select opportunities.
Return Analysis
Understanding project economics.
Evaluate projects based on:
Total project cost, Expected rental income, Operating expense projections, Financing terms achieved, Cash-on-cash returns, and Long-term appreciation potential.
Higher leverage improves returns when projects succeed. Understanding how to force appreciation in multifamily properties further enhances outcomes.
Risk Considerations
What can go wrong.
Consider risks including:
Construction cost overruns, Rent achievement uncertainty, Operating expense variations, Interest rate changes, Market condition shifts, and Program compliance requirements.
Leverage magnifies both returns and risks.
Frequently Asked Questions
Can individual investors access MLI Select?
What size project qualifies?
How long does approval take?
Can existing buildings qualify?
Where can I learn more?
How much rent can I charge on the affordable units?
How much money do I need to invest in a CMHC MLI Select multi-family project?
How does the MLI Select points system work?
What are the main risks of highly leveraged MLI Select projects?
Conclusion
CMHC MLI Select provides extraordinary financing terms for qualifying multi-family projects—up to 95% leverage with 50-year amortization and limited recourse. The points-based system rewards affordable, efficient, and accessible housing development.
New construction projects in growing markets like Alberta can optimize for MLI Select qualification, accessing financing terms that transform project economics. However, program complexity and experience requirements typically require professional partnerships.
For investors seeking high-leverage multi-family exposure, understanding MLI Select opens access to financing structures unavailable through conventional lending channels.
Disclaimer: LendCity Mortgages is a licensed mortgage brokerage, and our team includes experienced real estate investors. While we are qualified to provide mortgage-related guidance, the broader financial, tax, and legal information in this article is provided for educational purposes only and does not constitute financial planning, tax, or legal advice. For matters outside mortgage financing, we recommend consulting a Chartered Professional Accountant (CPA), licensed financial planner, or qualified legal advisor.
Written by
LendCity
Published
January 30, 2026
Reading Time
7 min read
CMHC Insurance
Mortgage default insurance from Canada Mortgage and Housing Corporation. For 1-4 unit investment properties, investors must put 20%+ down (no insurance available). However, CMHC offers MLI Select for 5+ unit multifamily properties, and house hackers can access insured mortgages with 5-10% down.
CMHC MLI Select
A CMHC program offering reduced mortgage insurance premiums and extended amortization (up to 50 years) for multifamily properties with 5+ units that meet energy efficiency or accessibility standards. Popular among investors scaling into larger apartment buildings.
LTV
Loan-to-Value ratio - the mortgage amount expressed as a percentage of the property's appraised value or purchase price (whichever is lower). An 80% LTV means you're borrowing 80% and putting 20% down. Lower LTV generally means better rates and terms.
Amortization
The period over which a mortgage is scheduled to be fully paid off through regular payments of principal and interest. In Canada, common amortization periods are 25 or 30 years, though the mortgage term (when you renegotiate) is typically 1-5 years.
DSCR
Debt Service Coverage Ratio - a metric that compares a property's net operating income to its mortgage payments. A DSCR of 1.25 means the property generates 25% more income than needed to cover the debt. Lenders typically require a minimum DSCR of 1.0 to 1.25 for investment property loans.
Commercial Mortgage
Financing for commercial properties like retail, office, or multifamily buildings with 5+ units, with different qualification criteria than residential mortgages.
Cash Flow
The money left over after collecting rent and paying all expenses including mortgage, taxes, insurance, maintenance, and property management.
Appreciation
The increase in a property's value over time, which builds equity and wealth for the owner through market growth or forced improvements.
Equity
The difference between a property's current market value and the remaining mortgage balance. If your home is worth $500,000 and you owe $300,000, you have $200,000 in equity. Equity builds through mortgage payments, appreciation, and property improvements.
Leverage
Using borrowed money (mortgage) to control a larger asset, amplifying both potential returns and risks on your investment.
Multifamily
Properties with multiple dwelling units, from duplexes to large apartment buildings. Often offer better cash flow and economies of scale.
Interest Rate
The cost of borrowing money, expressed as a percentage. It determines how much you pay on top of the principal borrowed.
Property Management
The operation, control, and oversight of real estate by a third party. Property managers handle tenant screening, rent collection, maintenance, and day-to-day operations.
Underwriting
The process lenders use to evaluate the risk of a mortgage application, including reviewing credit, income, assets, and property value to determine loan approval.
Rental Income
Revenue generated from tenants paying rent on an investment property. Gross rental income is the total collected before expenses, while net rental income subtracts operating costs to show actual profitability.
Energy Efficiency
The effectiveness with which a property uses energy for heating, cooling, lighting, and other functions. Energy-efficient upgrades to rental properties reduce operating costs, increase NOI, and can add significant property value while qualifying for government rebates.
Recourse Loan
A loan where the borrower is personally liable for repayment beyond the collateral value. If the property sells for less than owed at foreclosure, the lender can pursue the borrower's other assets. Most Canadian commercial mortgages under $5 million are full recourse.
Non-Recourse Loan
A loan secured only by the property itself, with no personal liability for the borrower beyond the collateral. In Canada, non-recourse lending is typically available only for large institutional deals or CMHC-insured multifamily mortgages.
Loan-to-Cost Ratio
The percentage of a development project's total cost that a lender will finance. Unlike LTV which compares loan to appraised value, LTC compares loan to actual project costs including land, construction, and soft costs.
Townhouse
A multi-story residential unit that shares one or more walls with adjacent units but has its own entrance. Townhouses offer a middle ground between condos and detached homes, often with lower purchase prices and condo-like fee structures.
Mixed-Use Property
A building that combines residential and commercial uses, such as retail on the ground floor with apartments above. Mixed-use properties can diversify income streams and may qualify for commercial financing terms.
Forced Appreciation
An increase in property value driven by the owner's actions rather than general market conditions. Strategies include renovations, increasing rents, reducing vacancies, or cutting operating expenses. In commercial real estate, raising NOI directly increases the property's income-based appraised value.
Heat Pump
An electric heating and cooling system that transfers heat between indoor and outdoor air. Cold-climate heat pumps eliminate carbon tax exposure on heating costs and can significantly reduce operating expenses compared to natural gas furnaces.
Insulation
Material installed in walls, attics, and floors to resist heat flow, measured by R-value. Upgrading insulation in older properties reduces heating and cooling costs, improves tenant comfort, and can qualify for government energy rebates.
Hover over terms to see definitions, or visit our glossary for the full list.
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