What Is CMHC MLI Select? A Smarter Way to Finance Multi-Unit Housing in Canada
- Seventy Seven Park
- Apr 17
- 3 min read
If you're a real estate developer or investor looking to finance affordable, accessible, and energy-efficient rental housing in Canada, CMHC's MLI Select program might be the advantage you're looking for.
With support for up to 95% loan-to-value, amortization periods as long as 50 years, and flexible underwriting for developers committed to affordability, energy efficiency, and accessibility, MLI Select turns financing into a strategic advantage.
What Is CMHC MLI Select?
CMHC MLI Select is a mortgage loan insurance product created to encourage the development and preservation of affordable, climate-compatible, and accessible rental housing.
It applies to:
New builds
Acquisitions
Refinancing of existing rental buildings
Major renovations
This isn’t just another loan insurance plan—it’s a policy designed to reward impact-driven developers and reduce financing friction.
MLI Select Program Overview
Feature | Benefit |
Loan-to-Value (LTV) | Up to 95% for both new and existing residential projects |
Amortization Period | Up to 50 years |
Eligible Property Types | Rental housing, SRO, retirement, supportive, student housing |
Loan Purpose | Purchase, construction, refinance, renovations |
Min. Project Size | 5 units (50+ for retirement) |
Debt Coverage Ratio (DCR) | As low as 1.10 for rental housing |
Borrower Requirements | 5+ years experience or third-party management + min. 25% net worth |
Accessibility to Non-Profits | Yes, with flexibility on recourse and guarantees |
How Do You Qualify?
Projects must earn at least 50 points across three categories to qualify:
Affordability
Energy Efficiency
Accessibility
Category | Max Points | Highlights |
Affordability | 100 pts | Units priced ≤30% of median renter income. Bonus for 20+ year commitment. |
Energy Efficiency | 50 pts | Reductions or improvements over NECB/NBC codes or baseline utility usage |
Accessibility | 30 pts | CSA B651:23 compliance or Rick Hansen Foundation certification |
Benefits at Each Points Tier
Points Achieved | Max LTV | Max Amortization | Recourse | Rental Holdback |
50+ points | 95% | 40 years | Full (standard) | May apply |
70+ points | 95% | 45 years | Full | Optional |
100+ points | 95% | 50 years | Limited (select cases) | May be waived |
Understanding MLI Select Interest Rates
When you're financing a multi-unit development, every percentage point matters. With CMHC’s MLI Select, the structure goes beyond just rates — it’s a financing strategy designed to reward intention. If your project supports affordability, energy efficiency, or accessibility, you don’t just qualify for extended amortization or higher leverage — you also unlock reduced insurance premiums.
Insurance Premiums by LTV
Loan-to-Value (LTV) | Indicative Premium Rate |
Up to 65% | 2.60% |
Up to 70% | 2.85% |
Up to 75% | 3.35% |
Up to 80% | 4.35% |
Up to 85% | 5.35% |
Note: Premiums are subject to borrower profile, deal structure, and CMHC approval.
Project Scenarios That Benefit
Affordable Housing Developers: Access higher leverage without sacrificing long-term stability.
Private Equity Firms or Funds: Reduce capital contribution and boost IRR.
Non-Profits and Co-ops: Potential for reduced personal guarantees with limited recourse.
ESG-Focused Builders: Align mission with real financial benefit.
Frequently Asked Questions
Can I use MLI Select for a refinance?
Yes, you can use it for refinancing existing buildings, including those undergoing energy retrofits or affordability renewals.
Is this only for affordable housing?
No. As long as your project earns 50+ points through any combination of affordability, accessibility, or efficiency, you can qualify.
Can I use it for mixed-use developments?
Yes, but non-residential space must be ≤30% of the gross floor area and value.
How We Help at Seventy Seven Park
We work with developers, brokers, and institutional clients to:
Assess and structure MLI Select applications
Maximize point scoring
Align capital stacks with lender expectations
Package applications to minimize processing delays
Looking at MLI Select for your next project?📩 Book a free consultation now
Let’s Talk Strategy
If you're ready to unlock better terms for your next multi-unit project, we’ll guide you through the MLI Select process from end to end—from feasibility to funding.
(416) 350-8448
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