CMHC MLI Select financing: conditions and benefits

What is MLI Select?

MLI Select is a CMHC mortgage loan insurance product for rental buildings with five or more units. It offers more flexible loan terms in exchange for commitments from the borrower.

These commitments cover affordability, energy efficiency and accessibility. CMHC measures them with a points system.

CMHC does not make the loan. It comes from an approved lender, who has the loan insured by CMHC.

The product exists to encourage buildings that are more affordable, more energy-efficient or more accessible. In return, CMHC accepts to take more risk on the loan.

The word “Select” therefore describes a set of loan conditions, not a loan in itself. Two identical projects can get different terms depending on the points they earn.

Which projects qualify?

CMHC publishes the basic criteria on its product page. They apply to new projects and to existing buildings.

• At least 5 units, or 50 units or beds for a retirement home
• Non-residential space capped at 30% of gross floor area and of total lending value
• Student housing eligible only through energy efficiency and accessibility

A building with four units or fewer therefore cannot use this product.

The product is for those who buy, refinance or build. CMHC’s page presents it for new projects and for existing buildings.

Before going further, count your units and measure the share of non-residential space. A building with large shops on the ground floor can exceed the 30% limit.

How do you earn points?

You need at least 50 points to access the product. The three routes can be combined.

• Affordability, existing building: 50, 70 or 100 points for 40%, 60% or 80% of the units
• Affordability, new construction: the same points for 10%, 15% or 25% of the units
• Energy efficiency, existing building: 20, 35 or 50 points for a 15%, 25% or 40% drop in consumption
• Accessibility: 20 or 30 points

The affordable units are those whose rent is set from 30% of the median renter income. The commitment lasts at least 10 years, and a 20-year commitment adds 30 points.

For accessibility, every unit must be visitable under the CSA B651:23 standard, and common areas must be barrier-free. In new construction, energy efficiency is measured against the 2020 National Energy Code of Canada for Buildings.

A simple example helps. The owner of an existing building who commits to affordability for 40% of the units earns 50 points on that alone.

The routes can also be combined. Work that cuts energy consumption by 15% adds 20 points, and accessibility adds 20 or 30.

Each commitment has a cost. Energy or accessibility upgrades require work, and affordability limits the rents you can charge. Weigh the points against that cost before committing.

What do the points change in the loan?

According to CMHC’s page, the 50, 70 and 100 point tiers unlock more flexible terms.

• At 50 points: up to 85% of value (existing) or 95% of cost (new)
• Also at 50 points: 40-year amortization and a debt service coverage ratio of at least 1.10
• At 70 points: amortization up to 45 years
• At 100 points: amortization up to 50 years and limited recourse against the borrower

CMHC also advertises reduced premiums for borrowers who make commitments. The table on the page does not make every figure legible for the 70 and 100 point tiers.

The exact premium and the other terms should therefore be confirmed with the lender. Premiums appear on a separate CMHC sheet.

The tiers read like a ladder. The stronger the commitment, the more CMHC relaxes the conditions, notably amortization length and recourse against the borrower.

A longer amortization lowers the monthly payment, so it improves the debt service coverage ratio. It also increases total interest over the life of the loan.

What other conditions apply?

MLI Select builds on the insurance for standard rental housing. CMHC sets requirements for the borrower there.

• A net worth of at least 25% of the loan
• At least five years of experience managing multi-unit buildings, or a property manager who has it
• A borrower guarantee for 100% of the loan until 12 consecutive months of regular rents
• A project that is at least 70% residential by floor area and loan value

These requirements come from the standard rental housing page. Ask the lender which ones apply to your project.

These conditions aim to make sure the borrower can see the building through. The guarantee protects the lender and CMHC during the period when rents are not yet proven.

A project company can carry the loan. The lender will still want to know who stands behind it and who gives the guarantee.

Which pitfalls should you avoid?

The first pitfall is counting points you cannot prove. Each commitment must be backed by documents that the lender sends to CMHC.

The second is underestimating the length of the commitment. Ten years of minimum affordability is a constraint on your rents, not a formality.

The third is assuming a tier unlocks everything. Each lender applies its own criteria on top of CMHC’s.

The fourth is neglecting follow-up. A commitment made at signing must be honoured for its whole duration, and the lender may ask for proof.

The fifth is comparing products on the premium alone. Fees, penalties and the length of the term also weigh in the real cost of the loan.

What should you do next?

Start by counting the units and the work that could earn points. A 50-point project often takes less effort than expected, but it has to be costed.

Then have an approved lender validate the calculation before you commit any spending. CMHC’s conditions change, and the official page overrides any summary.

On PMECAP, the Plex and multi-unit financing family describes the options. The request form goes to a brokerage firm registered with the AMF.

FAQ

Sources

• SCHL : APH Select (accessed October 13, 2026)
• SCHL : Assurance prêt hypothécaire, logements locatifs ordinaires (accessed October 13, 2026)
• SCHL : Assurance prêt hypothécaire pour immeubles collectifs (accessed October 13, 2026)