CMHC Financing Explained: How to Unlock Better Lending Terms for Your Rental or Multi-Unit Project

If you’ve been exploring ways to finance a new rental build or refinance an existing property in Ontario, you might have heard about CMHC financing, and more recently, MLI Select. It’s one of the most impactful tools available for investors, builders, and developers who want to grow their real estate portfolios while improving affordability, accessibility and sustainability.

An upcoming Seventy Seven Park development: this property was purchased for its long-term potential and will be redeveloped with CMHC MLI Select eligibility in mind.

At Seventy Seven Park, we specialize in helping clients understand and leverage CMHC programs to maximize their project’s potential. Below, we share how this type of financing works and why it’s reshaping how investors approach multi-unit housing across the GTA and beyond.

What CMHC Financing Actually Is

The Canada Mortgage and Housing Corporation (CMHC) provides mortgage insurance on qualified multi-unit properties, allowing lenders to offer better terms, lower rates, and longer amortizations than conventional commercial loans.

Think of it as a partnership between you, your lender, and the federal housing body, one designed to encourage rental housing development, energy efficiency, accessibility and affordability.

But it’s not just about making financing easier. CMHC’s programs are part of the Government of Canada’s broader effort to increase the supply of affordable and sustainable rental housing. By supporting qualified investors and developers with favorable terms, CMHC helps ensure that more housing gets built, especially in markets where affordability has become increasingly strained.

In other words, these incentives exist because Canada needs more purpose-built rental housing, and CMHC’s role is to make it financially viable to build it.

With CMHC-insured financing, investors can access:

• Up to 95% loan-to-value

• Amortizations up to 50 years

• Competitive interest rates thanks to the CMHC guarantee

• Improved debt coverage ratios, allowing stronger project economics

For a closer look at the technical side, including scoring, eligibility, and loan structure, our post “What Is CMHC MLI Select? A Smarter Way to Finance Multi-Unit Housing in Canada” covers the full breakdown.

What Makes MLI Select Different

The MLI Select program, CMHC’s latest evolution, uses a points-based system to reward projects that contribute to affordability, accessibility, and environmental performance.

You can qualify through three streams:

1. Affordability: Offering a portion of units at below-market rents.

2. Accessibility: Including barrier-free or universally designed suites.

3. Energy Efficiency: Building or retrofitting to meet high efficiency standards (such as Energy Star or Net Zero Ready).

   
   

Projects earn points in one or more of these areas. The higher your score, the better your loan terms, including longer amortizations and higher leverage.

Real-World Results: How CMHC Financing Impacts Cash Flow

To see just how powerful the difference can be, take a look at our CMHC MLI Select rental property case study.

In this client example, switching from standard commercial financing to CMHC MLI Select transformed monthly cash flow from negative $634 to positive $4,683, a swing of over $4,000 per month.

That’s the kind of tangible impact MLI Select can have when applied strategically.

Why Developers and Investors Are Turning to CMHC

Eduardo Pontes, Managing Director at Seventy Seven Park, puts it simply:

“It allows investors to think long-term. You’re not just building for today’s market, you’re financing in a way that protects future cash flow and creates sustainability in both your balance sheet and the community.”

In conversation with Eduardo Pontes, Managing Director at Seventy Seven Park.

Whether it’s a purpose-built rental in Hamilton, a refinance of a multiplex in Toronto, or a ground-up development in the Niagara region, the advantages are consistent:

• Lower carrying costs with extended amortizations

• Higher leverage while maintaining lender comfort

• Lower risk premiums and more predictable financing outcomes

Who Can Qualify

CMHC financing isn’t limited to large-scale developers. Borrowers can include:

• Small-scale builders developing multiplexes or multiplex conversions

• Investors adding laneway or garden suites to their portfolios

• Real estate funds acquiring stabilized apartment assets

• Non-profits or mission-based groups developing affordable housing

Dominic, Mortgage Advisor at Seventy Seven Park, emphasizes the accessibility:

“You don’t need to be a major developer. We’ve helped clients with as few as five units qualify. The key is understanding how your project aligns with CMHC’s scoring criteria and presenting it properly to lenders.”

How Seventy Seven Park Helps Clients Navigate the Process

Because we cover the full spectrum - financing, acquisition, and development - our team helps clients identify how their projects can qualify and guides them through:

• Pre-qualification and financial modeling

• Project scoring under MLI Select

• Coordination with lenders and appraisers

• Guidance on affordability or sustainability upgrades

This end-to-end approach means clients can make informed decisions earlier, often improving both project feasibility and long-term ROI.

Why This Matters in Today’s Market

With higher construction costs and tighter lending, CMHC financing has become one of the most strategic levers available to developers and investors. It can be the difference between a stalled project and one that’s cash-flow positive for decades.

Behind the scenes of a Seventy Seven Park build. Rising material and labour costs make programs like CMHC MLI Select essential for keeping multiplex projects viable.

By leveraging the program intelligently, you can:

• Increase your borrowing power without overleveraging

• Access capital at institutional-grade rates

• Position your project for long-term success and refinance stability

Let’s Talk About Your Project

If you’re considering a multi-unit build, rental conversion, or refinance, Seventy Seven Park can help assess your eligibility for CMHC MLI Select and build the case for your lender.

📍 Based in the Greater Toronto Area, our team has experience across Ontario markets including Hamilton, Niagara, London, and St. Catharines, all regions where CMHC-eligible housing is in high demand.

Let’s explore how CMHC financing can strengthen your next move.

Contact us today to book a consultation.

Seventy Seven Park Mortgages

(416) 350-8448

info@seventysevenpark.ca

Brokerage Licence Number #13004