CMHC MLI Select: 95% Financing & 50-Year Amortization Guide

Are you searching for multi-family real estate investments in Canada that deliver massive leverage, strong cash flow, and government-backed financing? In 2025 & 2026, the combination of CMHC MLI Select financing and Alberta’s explosive growth is creating some of the best opportunities investors have seen in decades. Diversifying your investments by including multi-family properties can maximize returns and minimize risk. With the benefits of a diverse real estate portfolio, you can strategically position yourself to take advantage of varying market conditions. Alberta’s robust economy not only supports sustainable rental demand but also enhances your investment’s resilience against economic fluctuations.

This in-depth guide is based on an exclusive live presentation by top Canadian mortgage experts and developers Scott Dillingham, Christine Traynor, and Jennifer Champion. You’ll discover exactly how the cmhc mli select program works, why Alberta (especially Edmonton) is the #1 province for multi-family right now, and real 2025–2026 deal examples that qualify for 95% financing with 50-year amortizations. Additionally, you will gain insights into the various multifamily loan options available, tailored to meet the needs of investors seeking to capitalize on the booming market. This comprehensive understanding will empower you to make informed decisions and leverage the best financing opportunities for your projects. With expert strategies and real-world examples at your disposal, you’ll be poised to unlock the potential of multifamily investing like never before.

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What Is CMHC MLI Select Financing and Why It’s a Game-Changer in 2025

The Canada Mortgage and Housing Corporation (CMHC) MLI Select program is designed to incentivize the construction and preservation of affordable, energy-efficient, and accessible rental housing across Canada.

Key Benefits of MLI Select (When You Score 100+ Points)

• Up to 95% loan-to-cost (LTC) on new construction or 95% loan-to-value (LTV) on purchases

• Up to 50-year amortization — dramatically lowers monthly payments

• Limited recourse (less personal risk than full-recourse conventional loans)

• Premiums and fees rolled into the loan (no out-of-pocket closing costs)

Compare that to the standard CMHC program: max 85% LTV and only 40-year Amortization.

How to Earn the Maximum 100 Points

Points are awarded in three categories:

• Affordability – Commit a percentage of units to rents at or below CMHC’s local affordability threshold

• Energy Efficiency – Higher insulation, better windows, heat pumps, solar readiness, etc.

• Accessibility – Wider doorways, zero-step entries, grab bars, etc.

New construction projects are far easier to maximize points than existing buildings, which is why developers dominate this space.

Borrower Requirements (Don’t Let This Scare You!)

• 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.

Why Alberta (Especially Edmonton) Is Canada’s #1 Multi-Family Market in 2025

Alberta has overtaken Ontario and BC as the top destination for savvy real estate investors. Here’s why:

Economic & Demographic Tailwinds

• Leading real GDP growth in Canada

• Massive interprovincial and international migration

• Diversified economy: tech, logistics, renewables, film, manufacturing (not just oil)

• Highest wages + no provincial sales tax = more disposable income

• Edmonton is the 6th most affordable major city in Canada

Landlord-Friendly Policies

• No rent control (raise rents annually with market)

• Faster, fairer eviction process

• Pro-development municipal rules — up to 8 units as-of-right on properly zoned lots (vs. only 3–4 in Ontario)

Supply/Demand Imbalance

Edmonton wants to double its population in the next decade. With limited new supply coming online fast enough, rental demand remains extremely strong.

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.

Why New Construction Beats Buying Existing Multi-Family in 2025

• Everything brand new → minimal capex for years (full warranties)

• Designed specifically for today’s renter (open layouts, modern finishes, in-suite laundry)

• Easier to hit 100 MLI Select points

• Faster lease-up and lower vacancy because the product stands out

Experienced teams like Christine and Jen’s are leasing buildings pre-completion or within weeks — while some off-market or poorly designed projects sit vacant for months.

Final Thoughts: 2025 Is the Year to Get Into Canadian Multi-Family

With interest rates stabilizing, population growth exploding, and CMHC offering unprecedented leverage, the window for 95% financed, cash-flowing, purpose-built rentals has never been wider. This creates an ideal environment for investors looking to capitalize on the booming rental market. With various investment property funding options now available, savvy investors can secure favorable terms to maximize their returns. As demand for housing continues to surge, investing in purpose-built rentals presents a significant opportunity for long-term financial growth. Additionally, as more renters seek modern and stylish living spaces, incorporating home design ideas and inspiration into these properties can attract higher-quality tenants. By enhancing the aesthetic appeal and functionality of rental units, investors can further increase their rental yields and reduce vacancy rates. Ultimately, the combination of a thriving market and innovative design can lead to a competitive edge in the purpose-built rental sector.

The most successful investors right now are partnering with experienced developers who already have:

• Land under contract

• Designs that max out MLI Select points

• Proven construction and management teams

If you’re ready to explore 2025–2026 opportunities in Edmonton or elsewhere in Canada, book a no-obligation call with the team that’s actually doing these deals every day.

Ready to put only 5% down on your next multi-family project? Click below to schedule your strategy session and receive full pro formas and renderings.

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Limited spots available for qualified investors.

Frequently Asked Questions

Written by

LendCity

Published

December 18, 2025

Tags

Cmhc Multifamily Canadian Investing Leverage Mortgage Basics

Key Terms in This Article

Amortization

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.

CMHC Insurance

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.

Cash Flow

Cash Flow

The money left over after collecting rent and paying all expenses including mortgage, taxes, insurance, maintenance, and property management.

Closing Costs

Closing Costs

Fees paid when completing a real estate transaction, including legal fees, land transfer tax, title insurance, appraisals, and adjustments.

Equity

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.

Joint Venture

Joint Venture

A partnership between two or more parties to invest in real estate, combining capital, expertise, or credit to complete a deal.

LTV

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.

Leverage

Leverage

Using borrowed money (mortgage) to control a larger asset, amplifying both potential returns and risks on your investment.

Interest Rate

Interest Rate

The cost of borrowing money, expressed as a percentage. It determines how much you pay on top of the principal borrowed.

Vacancy Rate

Vacancy Rate

The percentage of rental units that are unoccupied over a given period. A critical factor in cash flow analysis, typically estimated at 4-8% for conservative projections.

Hover over terms to see definitions, or visit our glossary for the full list.

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