Plan your multi-unit project with confidence. Our CMHC MLI Select calculator models points, loan size, LTV, amortization, DSCR and premiums for both developers and investors in Canada. Set affordability, energy and accessibility targets to see how your tier changes financing power, then dive into a detailed guide on eligibility, documentation and underwriting. When you’re ready, connect with our partner MPower Funds to structure and submit a stronger MLI Select package.
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CMHC MLI Select Calculator
CMHC Multi Unit Financing
CMHC MLI Select Calculator for Developers and Investors
Model points, loan size, LTV, amortization, DSCR and premium band in one pass. Set affordability, energy and accessibility targets to see which tier you may reach and how it boosts leverage and coverage. When ready, connect with MPower Funds to package a stronger file.
MLI Select Calculator
Choose a scenario, set project costs and underwriting assumptions, then click Calculate to view points, indicative tier, max LTV and amortization, premium band, loan sizing by constraints and DSCR.
New Build Mid-Rise
60 to 120 units, high efficiency
Garden Infill
24 to 40 units, mixed affordability
Acquisition plus Rehab
Existing asset, upgrades for points
Micro Units
Smaller suites, higher affordability
Student Oriented
Points from efficiency and access
Accessibility Emphasis
Universal design, barrier free
Project Basics
Impacts eligible costs and underwriting view.
24
48
100
Minimum 5 units typical for eligibility.
$1,600
$2,000
$2,400
Used to estimate stabilized revenue.
Costs and Capital Stack
$1,500,000
$2,500,000
$4,000,000
For acquisitions, treat as purchase price of building.
$12,000,000
$18,000,000
$24,000,000
Construction or rehab costs.
$2,500,000
$3,000,000
$4,000,000
Design, fees, interest reserve, marketing, contingency.
$4,000,000
$6,000,000
$8,000,000
Cash equity in the project.
4%
4.75%
5.5%
Used to sense check value and LTV.
Income and Expenses at Stabilization
3%
5%
7%
Applied to potential gross rent.
30%
35%
40%
Excludes debt service and replacement reserves.
$300
$500
$750
CMHC typically requires a reserve allocation.
MLI Select Targets
10%
20%
30%
Units priced to meet local affordability thresholds.
15%
25%
35%
Modeled reduction in energy use or GHG per CMHC pathways.
5%
10%
15%
Meets accessibility features recognized by CMHC.
Loan Terms
4.5%
5.25%
6%
Nominal annual mortgage rate.
35y
40y
50y
Final max amortization depends on tier.
1.10
1.20
1.25
Coverage threshold used in sizing.
Complete Guide to CMHC MLI Select in Canada
MLI Select is CMHC’s performance based mortgage loan insurance for multi unit rental housing. It encourages developers and investors to deliver more affordable, energy efficient and accessible homes by offering financing benefits to projects that commit to these outcomes. The three tracks are affordability, energy efficiency and accessibility. You earn points on each track by meeting defined thresholds. The total points place the project into a benefit tier. Higher tiers can unlock higher loan to value, longer amortization and lower insurance premiums, which directly improve coverage and reduce equity pressure.
Why MLI Select matters in today’s market
For new construction, higher amortization and leverage can bridge feasibility gaps created by elevated land and construction costs. For acquisition and rehab, the framework rewards owners who preserve affordability or invest in deep retrofits that reduce operating costs and emissions. The result is a capital stack that better aligns long term rental supply with policy goals while keeping the economics bankable for private and non profit sponsors.
How points are typically earned
- Affordability focuses on rent levels relative to local income or market benchmarks. Projects might commit a percentage of suites at target rents for a specified period. Smaller suite mixes can generate more affordable doors without sacrificing building function.
- Energy efficiency recognizes modeled reductions in energy use or greenhouse gas intensity compared to a baseline. In practice this can include improved envelope, heat pumps, ERVs, heat recovery DHW, sub metering and commissioning to verify performance.
- Accessibility credits barrier free design in dwelling units and common areas such as lobbies, corridors, amenities and parking. Universal design principles reduce retrofit risk and widen the addressable tenant base.
Design choices that lift points and NOI
Early coordination with energy modelers and code consultants allows you to lock in high impact measures before value engineering. Electrified HVAC and tight envelopes lower utility exposure and future carbon costs. Accessible floor plans planned in stacked locations minimize plumbing reroutes. On the affordability side, a right sized mix of studio and one bedroom suites can meet local needs while preserving per foot construction efficiency. Each of these choices increases the likelihood of landing in a higher tier and simultaneously reduces operating risk, which can improve cap rate perception at exit.
How lenders underwrite MLI Select deals
Lenders will underwrite to stabilized cash flow, with sensitivity to lease up timeframes and reserves. In construction, a typical structure may include a construction facility that converts to a CMHC insured take out on completion and performance milestones. In acquisition, the insured loan can close at purchase if affordability commitments and retrofit scopes are defined. Debt service coverage, loan to value and loan to cost limits all apply, and the tightest constraint controls. Longer amortization increases the DSCR capacity of the same NOI, which is often the lever that makes a project financeable without excessive equity.
Documentation and compliance
Expect to provide architectural drawings, specifications, pro forma, rent schedules and affordability attestations. For energy you will need baseline and proposed energy models or equivalent pathways depending on the province and building type. Accessibility plans should reference recognized standards and detail unit counts, door widths, clearances, ramp grades and elevator dimensions. After completion, commissioning reports and affidavits verify that the promised outcomes were delivered. Keep a clean audit trail, including leases and rent rolls that identify affordable suites and any ongoing reporting obligations.
Common pitfalls and how to avoid them
- Designing points late in the process, which makes compliance expensive or impossible without major redesign. Engage specialists early.
- Assuming energy savings without documentation. Align the model with final specs and run sensitivity checks before GMP award.
- Overestimating achievable rents while promising affordability. Use conservative rent comps and stress test income at lease up.
- Ignoring replacement reserves or maintenance realities in the pro forma, which can inflate NOI and distort DSCR.
Action step: Use the calculator above to scope your preliminary tier, LTV and amortization, then talk to MPower Funds about packaging and submission.
MLI Select Eligibility in Canada
MLI Select is available to developers, investors, non profits and municipalities for purpose built rental housing with five or more units. Projects can be new builds, acquisitions or refinancing. Non residential area is limited as a share of GFA and lending value. Student oriented housing can be eligible under energy and accessibility pathways. Always confirm current CMHC criteria for your province and building class.
Points and Typical Benefit Tiers
Points are earned across affordability, energy and accessibility. Higher totals can unlock higher LTV, longer amortization and reduced premiums. Use this tool for indicative scoping.
| Track | What it looks like | Examples of tactics |
|---|---|---|
| Affordability | Units priced below defined rent or income thresholds | Reserve set percentages of suites at target rents, optimize small suite mix |
| Energy Efficiency | Lower modeled energy use or emissions | Heat pumps, ERVs, envelope upgrades, airtightness testing, renewables |
| Accessibility | Barrier free units and common areas | Wider clearances, power doors, ramps, tactile wayfinding, elevator sizing |
Developer Structures to Maximize Points
Coordinate affordability commitments, energy design and accessibility early. Electrified systems and high performance envelopes reduce operating costs and lift points. Stack accessible units to minimize rework. Right size the suite mix to match local demand while unlocking affordability credits.
Investor Structures for Acquisition and Rehab
Acquire and upgrade while earning points from efficiency and accessibility commitments. Add affordability on turnover where feasible. Bundle deep energy retrofits with envelope work to capture long term NOI gains and higher tiers.
Underwriting Metrics and Sizing Logic
Loan sizing balances LTV, LTC and DSCR. The calculator shows each cap and selects the minimum. Longer amortization increases DSCR support for the same NOI. Premiums vary by tier and leverage.
Application Process and Documentation
- Define points strategy with energy and accessibility consultants.
- Prepare drawings, specs, pro forma, affordability commitments and rent schedules.
- Submit with lender packaging. Expect technical questions and clarifications.
- On completion, deliver commissioning reports and affordability compliance evidence.
Frequently Asked Questions
What is CMHC MLI Select and how does it differ from standard insured financing
MLI Select is a performance based mortgage loan insurance program for multi unit rentals that rewards projects which deliver affordability, energy efficiency and accessibility. Unlike standard insured loans that focus only on underwriting metrics, MLI Select layers a points system on top of conventional analysis. Hitting higher point thresholds can unlock higher LTV, longer amortization and reduced premiums. The result is more debt capacity for the same NOI and a better chance of feasibility for new builds and deep retrofits.
Who is eligible to apply under MLI Select
Eligible borrowers include developers, investors, non profits, co ops and municipalities. Eligible properties are purpose built rentals with a minimum unit count and limits on non residential areas. Projects can be new construction, acquisition financing or refinancing of stabilized assets that meet the points criteria and all underwriting requirements.
How are points calculated and what tiers exist
Points are earned on three tracks: affordability, energy and accessibility. Each track has defined thresholds and documentation rules. The total points place the project in a tier. Higher tiers can offer higher maximum LTV and amortization with premium reductions. The calculator on this page estimates points based on your inputs to give a quick sense of the tier and benefits, but formal scoring is determined during submission.
What underwriting limits still apply if I have a high tier
All insured loans remain subject to traditional constraints. LTV compares loan amount to stabilized value. LTC compares loan amount to eligible cost. DSCR ensures cash flow can service debt at the requested amortization and interest rate. The tightest constraint controls loan sizing. A higher tier helps by improving allowable LTV and amortization, which can increase the DSCR capacity of your NOI.
Can I qualify through energy and accessibility without affordability
Yes, many projects reach strong tiers with energy and accessibility pathways even if affordability targets are not feasible in the local market. Deep efficiency measures reduce operating costs and emissions, while barrier free design improves inclusivity. These tracks can be powerful for student oriented or workforce housing where rents are already constrained by market demand.
How should I plan affordability commitments
Start by mapping local income levels, current rents and product mix. Often the most effective approach is to reserve a percentage of smaller suites as affordable, where you can meet targets with less subsidy while matching demand. Bake the commitment into the design and leasing plan early, so your compliance documentation and leasing systems are set before occupancy.
What energy measures typically move the needle
Envelope upgrades with higher R values and better glazing, variable refrigerant flow or cold climate heat pumps, ERVs with heat recovery, balanced ventilation, electrified DHW with heat pump water heaters, and commissioning to verify performance. Sub metering and smart controls help maintain savings after occupancy. Coordinate with the energy modeler early so the specification aligns with the points pathway.
How do accessibility features translate into points
Credits recognize both unit level and common area improvements. Examples include wider door clearances, turning radii, roll in showers, lever hardware, power door operators, ramp and elevator design, tactile signage and barrier free amenity spaces. Plan accessible units in stacked locations to minimize riser moves and allow consistent detailing across floors.
What documents will CMHC expect at application and completion
At application, provide drawings, specifications, pro forma, rent schedules and affordability commitments, energy models or retrofit scopes, and accessibility plans. At completion, deliver commissioning reports, updated rent rolls with affordable suite identification, and affidavits that confirm the promised outcomes. Maintain organized records to support audits and ongoing reporting.
Do premiums change often and how should I budget for them
Premium tables can be updated, which affects economics. Budget conservatively and refresh your model as pricing guidance changes. Even when premiums rise, higher amortization and LTV may still produce lower annual debt service and better DSCR compared to conventional options.
Can condominium or mixed use projects qualify
MLI Select is aimed at purpose built rental. Mixed use buildings can be eligible if non residential area stays within program limits. Condominium projects are usually outside the scope unless they are purpose built rental with a long term hold strategy. Confirm the latest rules for non residential limits and tenure requirements.
How long does approval take
Timelines vary with project complexity, documentation quality and program volumes. A well prepared submission with clear energy models, affordability proof and accessibility plans will move faster. Factor additional time for technical questions and revisions.
What if my DSCR is shy of the target
Consider lifting the tier to unlock longer amortization, value engineer operating costs that do not harm performance, adjust the suite mix to strengthen NOI, or bring additional equity. Some sponsors stage affordability commitments to match lease up realities while preserving compliance.
