CMHC MLI Select Program – Unlock Better Financing for Multi-Unit Housing in Canada

In a Canadian rental-housing market facing significant pressure – rising construction costs, capital constraints, energy-efficiency imperatives and a growing need for affordable units – the CMHC MLI Select program offers a compelling financing pathway for developers, investors and property owners. Designed to replace the older MLI Flex product (announced December 2021), this initiative from the Canada Mortgage and Housing Corporation (CMHC) rewards projects that deliver one or more of the following: affordability, accessibility, and energy efficiency / climate compatibility.

By committing to meet thresholds in these three outcome-areas via a points-based system, a borrower can access more favourable financing terms: lower insurance premiums, higher loan-to-value (LTV) or loan-to-cost (LTC), longer amortizations (up to 50 years in some cases) and reduced debt service coverage requirements.

In this blog, we’ll walk you through: what MLI Select is, why it matters, what types of projects qualify, how the scoring/points work, the financing flexibility available, how to apply and prepare, as well as a detailed FAQ section to cover key questions you’re likely to have. Whether you’re a developer planning a new build, an existing property owner looking to refinance or reposition your multi-unit asset, or an investor exploring turnkey opportunities, this guide will give you the depth you need to understand how MLI Select works and how to take advantage of it.

What is the CMHC MLI Select Program?

The MLI Select program is a mortgage-loan-insurance (MLI) offering by CMHC targeted at multi-unit residential projects (rental housing) that commit to social and environmental outcomes.

Key highlights:

• It is available for new construction or existing properties (subject to eligibility rules).

• The project must have a minimum size: at least 5 units for most rental properties; for retirement homes/supportive housing there may be a higher threshold (for example, minimum 50 units/beds) in the program document.

• The program encourages three outcome-areas:

  1. Affordability – units rented at or below a percentage of median renter income

  2. Energy efficiency / climate compatibility – performance above baseline building codes or retrofit improvements

  3. Accessibility – units or buildings designed to be accessible / universal design.

• Projects earn points based on their level of commitment in each area; higher points correlate with greater financing flexibility.

• The financing features are more favourable compared with conventional, uninsured financing or older programs: higher leverage, longer amortization, reduced debt service coverage, possibly lower premiums (subject to scoring) etc.

In short: MLI Select is a strategic tool in Canada to support the development, preservation and upgrading of rental housing that is more affordable, accessible, and sustainable – and to align investor/developer financing incentives with public-policy goals.

Why This Program Matters

Addressing a pressing housing shortage

Canada continues to face a serious shortage of purpose-built rental and affordable housing. The need for housing that is both financially accessible (for renters) and built/upgraded in a climate-compatible way is acute. MLI Select is one of the mechanisms being used by CMHC and the federal government to mobilize private capital toward these goals.

Aligning financing with social outcomes

Traditional multi-unit financing often focuses purely on market-rate rents, cost of debt, and exit strategy. By contrast, MLI Select embeds social outcome commitments—affordability, energy efficiency, accessibility – directly into the financing terms. This creates an alignment between the developer/investor’s economics and broader societal objectives.

Improved financing terms for eligible projects

For developers and investors who can meet the thresholds, the program offers tangible financial advantages:

• Higher loan-to-value / loan-to-cost (LTV/LTC) up to ~95% in many cases.

• Longer amortization up to 50 years (for top-tier projects) meaning lower monthly debt service.

• Lower debt service coverage ratio requirement – some sources reference DSCR as low as 1.1x vs typical 1.25x.

• Discounted premiums for mortgage insurance if the project scores favourably.

These advantages can significantly improve the economics of a rental project – especially when margins are thinner, or when the project is achieving higher social/environmental outcomes.

Strategic competitive advantage

In a market where capital is constrained and risk is elevated (e.g., rising interest rates, cost escalation, regulatory complexity), having access to more favourable financing terms can be a competitive differentiator. Developers who incorporate affordability, accessibility and energy efficiency may access better terms and thus stronger returns or less risk exposure.

Who Is Eligible for CMHC MLI Select? (Project and Borrower Criteria)

Eligible property types

Under the program guidelines and supporting documentation, the following project types may qualify:

• Standard rental housing (new or existing) with a minimum of 5 units.

• Single-Room-Occupancy (SRO) rental housing.

• Supportive housing and retirement homes (for retirement homes the minimum unit/bed count may be higher, e.g., 50 units/beds as referenced).

• Student housing projects may qualify only under the energy efficiency and accessibility criteria (not affordability).

• Refinancing existing assets (not just new builds) is allowed within the program.

• Mixed-use buildings may qualify provided the non-residential component does not exceed 30% of gross floor area nor exceed 30% of total lending value.

Borrower / Developer eligibility

While CMHC’s program is project-based, there are criteria around the borrower/developer that need to be met:

• The borrower (or entity) should typically have experience managing multi-unit residential properties (some programs say at least 5 years) or engage an experienced property-manager if less experienced.

• A minimum net-worth requirement is often applied: for example, some sources reference net-worth of ~25% of the project value (especially when investor rather than operator) though the exact threshold can vary.

• The borrower must submit attestation forms (for affordability, energy efficiency, accessibility) and comply with ongoing commitments (e.g., maintain affordability for a certain number of years).

Geographic / asset-scope considerations

• The property must be located in Canada.

• Data such as median renter income (for affordability commitments) is based on CMHC/Statistics Canada region-specific figures.

• Projects must meet building-code baselines (e.g., National Energy Code of Canada for Buildings (NECB/NBC) for new builds) or demonstrate improvements versus existing baselines for existing properties.

Commitment timeframe

• For affordability commitments: the project must commit to maintaining affordability (units at or below required rent levels) for a minimum period – often at least 10 years from the date of first occupancy for new units.

• Additional benefits may accrue for longer commitments (20+ years) in some case.

How the Scoring (Points) System Works for CMHC MLI Select

At the heart of the MLI Select program is a points / scoring methodology. Projects earn points in each of the three pillars: affordability, energy efficiency, and accessibility. The total score determines what tier of benefits you qualify for.

Minimum thresholds

• To qualify for the program you must earn at least 50 points.

• There are higher benefit tiers at 70 points and 100 points.

• You can mix and match commitments across the pillars (you don’t have to max out in each one, but the higher your score the more favourable the financing).

Affordability pillar

This pillar measures the percentage of units in the project that are rented at or below 30% of median renter income for the subject market (for new and existing).

For example, from the program document:
For new construction:

• Level 1 (50 points) – Minimum 10% of units at max 30% of median renter income.

• Level 2 (70 points) – Minimum 15% of units at max 30% of median renter income.

• Level 3 (100 points) – Minimum 25% of units at max 30% of median renter income.

For existing properties:

• Level 1 (50 points) – Min 40% of units at max 30% of median renter income.

• Level 2 (70 points) – Min 60% of units at max 30% of median renter income.

• Level 3 (100 points) – Min 80% of units at max 30% of median renter income.

Also, committing to maintain affordability for 20 + years can add bonus points (in one source +30 points).

Energy Efficiency / Climate Compatibility pillar

This measures how much a building improves its energy performance compared to a baseline. For new builds, the baseline is often the NECB/NBC; for existing buildings, the baseline is current performance.

Examples:

• New construction: Level 1 (20 pts) – ≥ 20% better than NECB/NBC; Level 2 (35 pts) – ≥ 25% better; Level 3 (50 pts) – ≥ 40% better.

• Existing property: Level 1 (20 pts) – ≥ 15% reduction from baseline; Level 2 (35 pts) – ≥ 25%; Level 3 (50 pts) – ≥ 40%.

Accessibility pillar

Projects earn points for making units and common areas accessible, incorporating universal design, following standards like CSA B651, or achieving certifications such as Rick Hansen Foundation Accessibility Certification.

Examples of scoring:

• Level 1 (20 pts) – e.g., min 15% of units accessible per CSA standard or building meets certain accessibility certification.

• Level 2 (30–50 pts) – e.g., 100% of units are universal-design or building has “Gold” accessibility certification.

Using the points

The project’s total points determine which tier of benefits apply. The higher the points, the greater the flexibility (higher LTV/LTC, longer amortization, lower debt service coverage, etc.). For example:

• 50 pts → minimum benefits

• 70 pts → more favourable benefits

• 100 pts → top-tier benefits (including possibly limited recourse debt).

Summary table of scoring [Simplified]

Note: Actual terms will vary by lender, location, project risk profile, and CMHC underwriting.

Financing Flexibilities and Benefits

Loan-to-Value / Loan-to-Cost (LTV / LTC)

• For existing properties, projects with higher points may qualify for LTV up to ~95%.

• For new construction, LTC may be up to ~95% in many cases.

Amortization period

• Standard multi-unit mortgages may have amortizations of 25-30 years, but under MLI Select, amortizations of up to 40, 45 or even 50 years are possible (depending on points and project type) which significantly lowers monthly debt service and improves cash flow.

Debt Service Coverage Ratio (DSCR) / Debt Coverage

• The requirement for debt service coverage might be reduced under this program (for example ~1.1× instead of the typical ~1.25×).

Premiums for Mortgage Loan Insurance

• Borrowers pay insurance premiums to CMHC. Projects with higher points receive discounted premiums (rewarding social & environmental outcomes). Conversely, premium increases have been announced and risk-based pricing is being applied more rigorously, so it’s critical to understand current premium schedule.

Recourse / Limited Recourse

• For top-tier (100 point) projects, limited recourse lending may be possible (subject to lender and CMHC underwriting) which lowers borrower risk.

Lower Equity / Down Payment

• Because of the higher leverage and favourable terms, investors may be able to commit less upfront equity (down payment) than conventional financing would require. For example, some sources reference as little as 5% down in certain structures (note: this doesn’t mean every deal allows 5% equity – actual deal terms will vary).

Other benefits

• Flexibility in refinancing existing assets under the program.

• Mixed-use projects (subject to non-residential cap) being eligible.

• Support for assets that contribute to public policy goals (affordable rental, accessible housing, climate-resilient housing) which may align with institutional investors or public-private partnerships and may open further sources of capital or tax-incentives.

Financing Flexibilities and Benefits

Loan-to-Value / Loan-to-Cost (LTV / LTC)

• For existing properties, projects with higher points may qualify for LTV up to ~95%.

• For new construction, LTC may be up to ~95% in many cases.

Amortization period

• Standard multi-unit mortgages may have amortizations of 25-30 years, but under MLI Select, amortizations of up to 40, 45 or even 50 years are possible (depending on points and project type) which significantly lowers monthly debt service and improves cash flow.

Debt Service Coverage Ratio (DSCR) / Debt Coverage

• The requirement for debt service coverage might be reduced under this program (for example ~1.1× instead of the typical ~1.25×).

Premiums for Mortgage Loan Insurance

• Borrowers pay insurance premiums to CMHC. Projects with higher points receive discounted premiums (rewarding social & environmental outcomes). Conversely, premium increases have been announced and risk-based pricing is being applied more rigorously, so it’s critical to understand current premium schedule.

Recourse / Limited Recourse

• For top-tier (100 point) projects, limited recourse lending may be possible (subject to lender and CMHC underwriting) which lowers borrower risk.

Lower Equity / Down Payment

• Because of the higher leverage and favourable terms, investors may be able to commit less upfront equity (down payment) than conventional financing would require. For example, some sources reference as little as 5% down in certain structures (note: this doesn’t mean every deal allows 5% equity – actual deal terms will vary).

Other benefits

• Flexibility in refinancing existing assets under the program.

• Mixed-use projects (subject to non-residential cap) being eligible.

• Support for assets that contribute to public policy goals (affordable rental, accessible housing, climate-resilient housing) which may align with institutional investors or public-private partnerships and may open further sources of capital or tax-incentives.

Step-by-Step: How to Apply and Qualify

1. Early Project Planning & Strategy

• Define the project: size (# units), type (new construction vs existing), location, targeted outcomes (affordability %, energy-efficiency improvement, accessibility features).

• Select which combination of outcome-pillars your project will commit to (affordability, energy efficiency, accessibility).

• Estimate likely points in each pillar (e.g., you might commit to Level 2 affordability + Level 1 energy efficiency).

• Work with architect/engineer/property-manager to model energy performance, accessibility design and rental affordability. For energy modelling you may need a professional engineer, energy simulation software, and baseline vs projected savings.

• Estimate financing needs and structure: acquisition/REFI cost or construction cost, projected rental income, debt service coverage, amortization scenario.

2. Choose a CMHC-approved lender & broker

• Identify a lender that works with CMHC insured multi-unit financing and has experience with MLI Select.

• The lender will help you navigate the application, documentation and CMHC underwriting process.

3. Submit Pre-Application/Profile

• Prepare a preliminary project profile including: project description, target market, affordability plan, energy/efficiency plan, accessibility plan, projected financials, borrowing structure.

• The lender and/or CMHC will review eligibility, project fit and potential scoring outcome.

4. Formal Application & Attestations

• Complete the official MLI Select application package. This includes:

  • Attestation forms for affordability, energy efficiency, accessibility commitments.

  • Detailed financial statements, pro-forma rent roll, valuation for existing assets or cost estimates for new construction.

  • Engineering/energy model reports (existing or new build) showing improvement relative to baseline.

  • Accessibility plans and documentation (CSA standards, universal design, or certifications).

  • Evidence of borrower/developer experience, net worth, and management team. Some regions require minimum net worth or leverage thresholds.

  • Mixed-use component details (if applicable) showing non-residential component is within cap (30%).

5. CMHC Underwriting & Scoring Review

• CMHC reviews the project, validates the scoring (points) outcome, reviews the financing structure, risk assessment, and issues a Certificate of Insurance once approved.

• Note: Approval timelines can vary depending on complexity, size, documentation completeness. Some sources cite 3-6 months.

6. Construction/Acquisition Phase

• For new builds, construction begins according to draw-down schedule. CMHC may require performance bonding, construction documentation, separate inspections.

• For existing properties, acquisition or refinancing occurs and you meet the conditions for affordability/energy/ accessibility.

• Maintain records and monitoring commitments (e.g., rent levels, energy savings, accessibility compliance) for the term of the commitment (10+ years).

7. Rental Operations & Ongoing Compliance

• After occupancy, you must honour rental affordability commitments (for the term you committed).

• Maintain energy performance or retrofit outcomes as committed.

• Maintain accessibility features.

• Provide regular reporting to CMHC or lender as required.

• Failure to comply with commitments may trigger recapture of benefits, higher premiums or other penalties.

8. Exit or Hold Strategy

• Because of favourable amortization and financing, you may hold the property long term, with cash-flow advantages.

• If selling, you need to consider whether the buyer is willing/able to assume the remaining commitments (especially affordability). Some sources suggest transfer is possible if the buyer meets eligibility.

Real-World Considerations & Updates

Premium increases & market risk

In July 2025, CMHC announced a revision to the premium schedule among its multi-unit insurance products, including MLI Select: premiums may rise depending on leverage, amortization and risk profile. A new discount schedule based on social outcome levels (affordability, accessibility, energy efficiency) is being introduced.

This means while the program benefits remain strong, the economics are more sensitive to risk factors (high leverage, long amortization) and you must model carefully.

Mixed-use & property configuration changes

New Homes Alberta notes that as of the 2025-02-26 update, CMHC clarified that “bundled products” (multi-titled properties) may no longer be eligible for MLI Select. Developers/investors must pay attention to the legal structure of their properties.

Market location & expertise matter

While the program is available nationwide in Canada, local housing market conditions, median renter income data, local building code/regulations, property management availability, and cost of construction or renovation all vary by location. Lenders and CMHC expect developers/investors to be familiar with the local market, or engage local experts. Some commentary suggests that out-of-province investors may face extra scrutiny or partner with local operators to succeed.

Developer/investor risk remains

Despite generous terms, the underwriting remains rigorous: you still need credible business plan, management capacity, proven track record (or outsource property management), proper cost contingencies, energy modelling etc. The “soft” benefit of the program must be matched by “hard” execution. Also, long-term commitment to affordability or accessibility may limit flexibility in exit strategy or rent setting—in a rising-rent market, offering below-market rents may reduce upside, so all parties must understand trade-offs.

Ongoing reporting and compliance

Because you are committing to outcomes over a period, there is a reporting burden and potential cost of compliance (energy monitoring, accessibility audits, affordable rent tracking). These ongoing costs should be built into your underwriting.

Common Pitfalls & Best Practices

Pitfalls to avoid

• Under-estimating documentation complexity: Energy model, accessibility plan, affordability schedule all require professional preparation.

• Assuming terms are automatic: Even with 100 points, you must satisfy lender credit criteria, market rent, vacancy, cost escalation risk.

• Ignoring premium increases and leverage risk: Higher LTV and long amortization increase risk—premium hikes may offset some benefit.

• Failing to plan for ongoing commitments: Affordability may limit rent increases; energy performance may require monitoring; accessibility features may add cost.

• Ignoring market location or management risk: A project in weak rental market or with inexperienced operator may under‐perform.

• Exit strategy mismatch: You must plan for impact of affordability/accessibility commitments on liquidity/asset value when you exit or refinance.

Best practices

• Engage early with experienced CMHC-approved lenders and brokers familiar with MLI Select.

• Build a realistic pro-forma scenario factoring in rent caps (for affordable units), energy efficiency costs, accessible design premium, long term commitment restrictions.

• Use third-party professionals (engineer/energy modeller, accessibility consultant, property manager) to support your commitments.

• Underwrite conservatively: assume conservative rents, vacancy, cost escalation, interest rate stress.

• Document clearly (pre-construction or repositioning) your baseline and improvement targets (for energy), your unit rental mix (for affordability), and your accessibility compliance.

• Monitor and report compliance regularly; treat your affordability/rent commitments as covenants rather than flexible assumptions.

• Stay updated on CMHC policy changes (premium schedules, eligibility updates, underwriting guidelines) because they evolve.

Who Benefits from MLI Select?

Developers building new rental housing

If you are a developer building purpose-built rental housing (5+ units) and you’re willing to commit to certain affordability, energy and accessibility features, you may access favourable financing and thereby improve project returns or reduce equity requirements.

Investors acquiring or refinancing existing rental assets

Existing property owners looking to refinance or reposition their asset into the affordable/energy/accessible space may leverage the benefits of MLI Select, assuming the asset meets eligibility and you’re comfortable with the commitments.

Institutions and joint ventures

Given the social outcome focus (affordability, energy efficiency, accessibility), institutional investors, pension funds, community housing partners, social housing groups may find MLI Select a good fit, especially if they have long-term hold strategies and strong ESG (Environmental-Social-Governance) mandates.

Tenants / society at large

While the primary audience for this page is developers/investors, it’s worth noting that this program supports outcomes that benefit tenants (lower-rent units), communities (accessible housing, energy efficient buildings, reduced carbon footprint) and policy goals (increased housing supply).

Key Metrics & Terms to Know

Here are some of the important metrics and terms you should understand when considering MLI Select:

Case Example (Hypothetical)

Here’s a simplified hypothetical example to illustrate how an investor/developer might use MLI Select:

Project: New construction of 60-unit rental building in midsize Canadian city.
Commitments chosen:

• Affordability: 15% of units to be rented at ≤ 30% of median renter income → Level 2 → approx 70 points in this pillar.

• Energy efficiency: Design to be 28% better than NECB baseline → Level 2 → approx 35 points.

• Accessibility: 100% universal-design units (or high certification) → Level 3 → approx 50 points.
  Total score: ~155 points (note: program caps may treat 100 points as maximum for benefit tier).
  Benefit: Because of high score, project qualifies for top-tier benefits: LTV/LTC up to ~95%, amortization up to ~50 years, DSCR as low as ~1.1x, limited recourse option, discounted insurance premium.
  Financing impact: Lower upfront equity required, lower monthly debt service, improved cash flow; ability to manage risk and achieve higher return on equity.
  Considerations: Must plan for long-term commitment (affordable rent for e.g. 10-20 years), manage energy modelling and accessibility cost, ensure developer/manager has required experience, pay attention to premium increases or changes in policy.

FAQs – Your Questions Answered

1. What types of properties can use MLI Select?

Properties eligible include multi-unit rental housing (minimum five units), SRO housing, supportive housing, retirement homes (minimum higher units/beds), and student housing (subject to energy/accessibility only). Existing assets and new construction are both eligible.

2. What is the minimum number of units required?

The minimum is typically five rental units in the same building and on the same lot for standard rental housing. For retirement homes/supportive housing the threshold may be higher (e.g., 50 units/beds) per CMHC document.

3. What is the affordability requirement?

Affordability is defined as offering units at or below 30% of median renter income for the subject market. The percentage of units dedicated to this threshold varies by level: e.g., for new builds: 10% of units (Level 1), 15% (Level 2), 25% (Level 3) at 30% of median renter income. For existing properties: 40%, 60%, 80% of units respectively.

4. How long must affordability be maintained?

Projects must commit to maintain affordability for a minimum of 10 years from first occupancy for new construction. Longer commitments (20+ years) may gain bonus points.

5. What counts under energy efficiency?

For new builds, you must demonstrate improvement over baseline (e.g., NECB/NBC) – e.g., ≥20% better (Level 1), ≥25% (Level 2), ≥40% (Level 3) for new construction. For existing properties, improvement over current performance – e.g., ≥15% reduction (Level 1), ≥25% (Level 2), ≥40% (Level 3).

6. What counts under accessibility?

Projects earn points by having units and common areas that meet accessibility standards (e.g., CSA B651), or achieving certifications (Rick Hansen Foundation). Examples: Level 1 (20 pts) min 15% units accessible; Level 2/3 higher percentages or universal-design 100% units.

7. What financing terms can I get?

While specific terms vary, potential benefits include up to ~95% LTV or LTC, amortizations up to ~50 years (for top scoring projects), DSCR as low as ~1.1×, limited recourse debt (for 100-point projects).

8. What is required of the borrower/developer?

You need financial capacity, net worth (some references ~25% of project value), experience in multi-unit residential management (or hire/procure an experienced property manager). You will need to submit attestations and documentation.

9. What is the down payment / equity requirement?

While the program allows high leverage, you still require equity. Some commentary indicates investors may be able to use as little as 5% down under certain circumstances – but this is not guaranteed, depends on lender/project structure.

10. How long does the application/approval take?

The review, underwriting and issuance of CMHC Certificate of Insurance may take several months (some sources suggest 3-6 months), depending on complexity, documentation completeness, new construction vs existing asset, etc.

11. Can I buy an existing property and reposition it under MLI Select?

Yes – the program allows refinancing existing properties (not just new builds). But the property must meet eligibility criteria (unit count, outcome-commitments, LTV etc.). You will need to make sure the existing asset can meet the affordability, energy efficiency or accessibility commitments.

12. Can I include a non-residential component (mixed-use)?

Yes, but for existing properties the non-residential component must not exceed 30% of gross floor area nor 30% of total lending value.

13. What happens if I fail to meet the commitments (e.g., affordability or energy savings)?

Failing to comply may lead to recapture of benefits, higher premiums, penalties, or loss of favourable terms. These are carefully defined in the underwriting documentation and loan agreement. It’s critical to design the project so you can deliver on commitments.

14. Are premium increases expected?

Yes. CMHC has announced changes to premium schedule effective July 14, 2025, which includes risk-based pricing and discount schedules based on social outcome levels. Projects with high leverage or long amortization may face higher premiums.

15. Is this program only for large institutional developers?

Not necessarily—but you must meet eligibility criteria, have credible underwriting, experience (or partner with experienced manager), and comply with outcome commitments. Smaller developers or investors can participate if structure and documentation is sound.

16. Does this program replace conventional financing?

No. This is a specialist financing route. You still need a lender, loan package, project viability. MLI Select gives you advantage if you commit to the three outcome-pillars and structure accordingly. Conventional financing may still exist in parallel or as part of blended financing.

17. Can I sell the property later?

Yes, you can exit, but you must consider the remaining term of the affordability/accessibility/energy commitments. The new owner may need to assume those commitments or you need to negotiate exit strategy. Some commentary suggests transfers are possible if buyer qualifies.

18. How do I track median renter income for affordability?

CMHC provides data via its median renter income tables by region; you will use that benchmark to determine your affordability commitment (units renting at or below 30% of that income).

19. What documentation is required?

Key documents include: application form, attestation of commitments, financial statements, rent roll or pro-forma, valuation or cost estimate, energy model/engineer report if applicable, accessibility plan, property management plan, borrower net worth evidence, building use/occupancy plan.

20. What is the minimum number of points I need?

Minimum 50 points to be eligible. But to unlock strongest benefits you’ll want to aim for 70 or 100 points.

21. Can a project commit to only one of the three pillars (affordability, energy, accessibility)?

Yes – you can choose to focus on one pillar if that aligns with your project strategy. The scoring system allows mixing. But to access the full benefits you’ll want to combine pillars and aim for higher points.

22. What if I exceed 100 points?

The program documentation indicates no bonus for exceeding 100 points (100 points is effectively the maximum benefit tier).

23. Does student housing qualify under all pillars?

Student housing is eligible only under the energy efficiency and accessibility criteria—affordability commitment is not required for student housing.

24. What about supportive housing / retirement homes?

Yes—they are eligible under MLI Select. For retirement homes/supportive housing, there are specific thresholds (e.g., minimum 50 units/beds) and the program may allow different structuring.

25. Are environmental certifications mandatory?

Not strictly mandatory in all cases, but using recognized standards (NECB/NBC baseline, engineer energy model, Canada Green Building Council etc.) will strengthen the energy efficiency component. The program uses improvement metrics rather than mandating specific certifications.

26. Can I renovate an existing building and qualify?

Yes you can, provided it meets the eligibility requirements (minimum units, outcome commitments, documentation). You must demonstrate the baseline performance and planned improvement for energy efficiency and/or accessibility and/or commit to affordability.

27. How does amortization of 50 years affect my risk?

Longer amortization reduces monthly payments and improves cash flow, but you still face interest rate risk, maintenance risk, vacancy risk, and asset value risk. Under longer amortization you may be more exposed to long-term performance, and exit strategy must consider how much equity has been amortised over time.

28. Does CMHC guarantee the loan?

No—the loan is still made by a lender; CMHC provides the mortgage loan insurance so the lender is more willing to provide favourable terms. You still have to meet the lender’s underwriting criteria.

29. What happens at maturity of the loan?

The loan term may be 10-year term (for example) with amortization of up to 50 years. At maturity you may refinance, convert to conventional mortgage or sell the asset. You must still satisfy the outcome commitments (affordability, energy, accessibility) for the duration you committed.

30. How do I know if my rental units count as “affordable” for this program?

You compare the rent you will charge against 30% of the median renter income for that region (before tax). If you rent at or below that threshold for your designated units, you may qualify under the affordability pillar. CMHC publishes or references data for median renter income.

Summary & Next Steps

The CMHC MLI Select program offers a powerful financing tool for multi-unit rental housing projects that align with affordability, energy efficiency and accessibility outcomes. If your project—and your team—are prepared to commit to these outcome streams, you can secure financing with higher leverage, more favourable terms and improved cash-flow potential over the long-term.

Next steps:

1. Review your project—Is it new or existing? How many units? What outcome commitments can you realistically deliver?

2. Engage a professional team (engineer/energy modeller, accessibility consultant, property manager, lender/broker experienced in MLI Select).

3. Map out your scoring—what combination of affordability, energy efficiency and accessibility can you target to hit 70 + points (or ideally 100 points)?

4. Run pro-forma financing assuming favourable terms (high LTV, long amortization) and stress-test for rent growth, vacancy, cost escalation.

5. Submit your project profile with your lender and initiate CMHC application process.

6. Monitor policy changes (premium schedule, underwriting criteria) and update model accordingly (e.g., July 2025 premium update).

7. Ensure ongoing compliance – set up systems for rent tracking, energy performance monitoring, accessibility audits, and long-term asset management.

With proper preparation and execution, the MLI Select program can be a game-changer in your multi-unit residential investment or development strategy.

References & Resources

1. Canada Mortgage and Housing Corporation (CMHC) – MLI Select Program Overview – Official CMHC page outlining eligibility criteria, points system, and program benefits.

2. CMHC MLI Select Fact Sheet (PDF) – Program Details and Scoring Guide – Detailed breakdown of affordability, accessibility, and energy-efficiency scoring criteria.

3. Government of Canada – National Housing Strategy – Affordable Housing Initiatives – Learn about federal efforts to increase the supply of affordable and sustainable housing.

4. Natural Resources Canada – Energy Efficiency Regulations and Tools – Official benchmarks and incentives related to building energy performance in Canada.

5. Smarter Loans Tools & Resources – CMHC MLI Select Calculator
   Use this free calculator to estimate your project’s score, eligible tier, and potential financing terms.

6. Canadian Mortgage Professionals Association (CMBA) – Lender and Broker Insights on MLI Select – Industry commentary and case studies on how lenders are structuring CMHC MLI Select deals.

7. Canada Green Building Council (CaGBC) – LEED and Energy Benchmarking Resources – Supporting resources for energy-efficient and sustainable multi-unit housing design.