CMHC MLI Select: Get 95% Financing for Multifamily

If you’re looking at multifamily investing in Canada, there’s a financing program you need to know about. It’s called CMHC MLI Select, and it offers some of the best terms you’ll find anywhere – up to 95% financing with a 50-year amortization. Yes, you read that right.

Here’s the thing though: getting access to this program isn’t straightforward. There are hoops to jump through, requirements to meet, and strategies to understand. Let’s break it all down.

What Makes MLI Select So Attractive?

The numbers speak for themselves. With traditional financing, you might get 75-80% loan-to-value with a 25-year amortization. MLI Select can give you 95% financing with 50 years to pay it back.

What does this mean for your wallet? Your monthly payments drop significantly. Your cash flow improves dramatically. And you need way less money upfront to get started.

The program is also limited recourse, which means your personal liability is reduced compared to traditional loans where you’re on the hook for everything.

CMHC created this program to encourage more affordable housing across Canada. So you’re aligning your profit goals with a social mission – creating housing people can actually afford.

Book Your Strategy Call

The Points System: Your Key to Maximum Leverage

Here’s where it gets interesting. MLI Select uses a points-based system to determine your financing terms. Score 100 points, and you get the full 95% financing with 50-year amortization. Score less, and your terms decrease on a sliding scale.

There are three ways to earn points:

1. Affordability Points (Up to 100)

This is the most straightforward path. CMHC has rental thresholds for each market that define what counts as “affordable.” The more units you have at or below these thresholds, the more points you score.

If you can hit affordability targets on enough units, you can score all 100 points through this component alone.

2. Energy Efficiency Points

If affordability alone doesn’t get you to 100 points, you can supplement your score with energy-efficient features. Think energy-efficient windows, doors, insulation, HVAC systems, and other green building upgrades.

Each improvement adds to your score based on CMHC’s point schedule.

3. Accessibility Points

The third option involves making your building accessible to people with disabilities. Wheelchair ramps, wider doorways, accessible bathrooms, elevators – these features all contribute points.

The smart approach is to design your project from the beginning to maximize points, rather than trying to retrofit later.

Can You Qualify? The Requirements

Even with great financing terms, you still need to meet CMHC’s requirements. Here’s what they’re looking for:

Net Worth Requirements

You need a net worth of at least 25% of the total loan amount OR $100,000, whichever is greater.

For a $2 million project, that means $500,000 in net worth. This can include real estate equity, investment accounts, business valuations, and other assets.

Liquidity Requirements

Here’s where it gets trickier. You need approximately 10% of the purchase price plus development costs in liquid assets. That means actual cash in bank accounts, TFSAs, stocks, or unused lines of credit.

Real estate equity doesn’t count as liquidity. However, you can refinance existing properties to pull out cash, which then qualifies.

Experience Requirements

This is where many people hit a wall. CMHC requires demonstrated experience in multifamily development, construction management, or related fields.

You might have the money, but without the experience, you can’t qualify. This is why partnerships become essential.

New Construction vs. Existing Properties

Can you use MLI Select financing on existing buildings? Technically yes, but it’s tough.

The problem is that older buildings rarely meet the criteria to score 100 points. They don’t have the energy efficiency features, accessibility components, or affordable rent structures CMHC wants to see.

Some investors use bridge loans – temporary financing that lets you buy and renovate an existing property before refinancing into MLI Select. But this adds complexity, time, and cost.

New construction is the easier path. You design the building from day one to meet all program requirements, ensuring maximum points and optimal financing terms.

Why Alberta? Why Edmonton?

If you’re wondering where to deploy this financing strategy, Edmonton deserves serious consideration. Here’s why:

Economic Growth and Diversification

Alberta is leading all Canadian provinces in GDP growth. And it’s not just oil and gas anymore – the province has diversified into technology, logistics, manufacturing, film production, and renewable energy.

This economic strength means jobs, which means housing demand.

Population Growth

Edmonton has set a goal to double its population within 10 years. The city is actively facilitating this growth by allowing up to 8 units on appropriately sized lots without special permits.

Compare that to Ontario, where most areas cap at 3 units and require special permits for anything larger.

Tax Advantages

Alberta has no provincial sales tax. Residents only pay 5% GST instead of the 12-15% combined rates in Ontario and BC. Provincial income taxes are also lower.

This means higher disposable income for residents, which supports stronger rental markets and better tenant quality.

Affordability

Edmonton ranks as the sixth most affordable city in Canada. Entry prices can be as low as a quarter of what you’d pay in Vancouver or Toronto.

Your investment dollars go much further, allowing you to acquire larger properties or diversify across multiple projects.

Landlord-Friendly Laws

Alberta has no rent control. You can adjust rents annually to match market conditions and cover expense increases.

The province also has efficient eviction processes and balanced tenancy rules that protect both landlords and tenants. This reduces risk and creates a more predictable operating environment.

The Partnership Solution

Meeting all the requirements for MLI Select financing is tough for individual investors. You need substantial capital, extensive experience, local market knowledge, and time to manage everything.

This is why partnerships make sense. Multiple investors can pool resources and partner with experienced developers who have boots on the ground.

In a partnership structure, the operating team handles everything – site selection, design, construction management, municipal approvals, and ongoing property management. Investors receive their proportional share of cash flow and appreciation without the day-to-day involvement.

The team’s experience satisfies CMHC’s requirements, opening doors that would otherwise be closed to individual investors.

What About Standard CMHC Financing?

If MLI Select seems too complicated or your project doesn’t qualify, CMHC offers a standard multifamily financing program.

The terms aren’t as generous – up to 85% loan-to-value with 40-year amortization – but there’s no points system to worry about. The qualification process is more straightforward.

This can be a good option for projects that don’t meet MLI Select requirements or investors who prefer a simpler path.

The Bottom Line

CMHC MLI Select offers some of the most attractive financing terms available for multifamily investing in Canada. The 95% financing and 50-year amortization can transform project economics and dramatically improve cash flow.

But accessing these terms requires careful planning. You need to design projects specifically to maximize points through affordability, energy efficiency, or accessibility features. You need substantial net worth and liquidity. And you need demonstrated experience in multifamily development.

For many investors, partnerships provide the practical path forward – combining capital from investors with experience and local expertise from operating teams.

If you’re serious about multifamily investing and want to understand how these programs could work for your situation, it’s worth having a detailed conversation with specialists who work with CMHC financing regularly.

Book Your Strategy Call

Frequently Asked Questions