CMHC MLI Select

Financing an Existing or New Multi-Residential Property

If you've been growing a portfolio of one- and two-unit rentals and are thinking about your next step, CMHC MLI Select is probably the most important program to understand. It's a federal mortgage insurance product that rewards investors for building or buying rental housing that's more affordable, more energy efficient, or more accessible — and the reward is dramatically better financing than you'd get on a typical investment property.

This guide is written for investors who are newer to multi-unit real estate. We'll start with what "multi-residential" means and how these properties are normally financed, then explain how MLI Select improves on that — separating the path for buying an existing building from the path for building a new one — how you earn points, and what CMHC expects from you as a borrower.

"Multi-residential" (sometimes called multi-family residential) means a residential property with multiple self-contained rental units under one ownership — an apartment building rather than a single house or condo.

Many investors reach this point by way of smaller holdings. It's common to own several one- and two-unit properties (a house, a duplex, a rental condo) before consolidating into a single multi-unit building. Making that jump is significant, because at five or more units a property crosses from residential into commercial mortgage territory, and that's exactly where CMHC's multi-unit insurance begins. To be eligible, the property must generally contain at least five units and be at least 70% residential by both floor area and lending value.

Multi-residential properties range from small low-rise apartment buildings to large high-rise developments. If you are constructing a new building, its height and construction type will materially affect its cost, timeline and financing requirements.

Before looking at MLI Select, it helps to understand the two ways a five-plus-unit property is usually financed.

The first is a conventional (uninsured) commercial mortgage. Because there's no CMHC insurance protecting the lender, the terms are conservative: typically up to 75% loan-to-value, amortization of about 25 years (some lenders stretch to 30), and higher interest rates. You avoid paying a CMHC premium, but you need a much larger down payment, and your monthly payments are higher.

The second is CMHC MLI Standard — the "no strings attached" version of CMHC's multi-unit mortgage loan insurance. Because the loan is government-insured, the lender can offer more: up to 85% loan-to-value and amortization up to 40 years (50 years when building), at lower interest rates than an uninsured commercial loan. You pay a CMHC insurance premium for this, and the mortgage is full recourse, but you don't have to commit to any affordability, energy, or accessibility targets. Approval is also generally faster than MLI Select. For many straightforward buy-and-hold deals, MLI Standard is the baseline option.

MLI Select, covered next, is the third path — and for investors willing to make some commitments, it's usually the most powerful.

CMHC (Canada Mortgage and Housing Corporation) is the federal Crown corporation that provides mortgage loan insurance (MLI) in Canada. That insurance protects lenders against default, which lets them offer borrowers better terms.

MLI Select is CMHC's incentive-based multi-unit insurance product. It builds on MLI Standard by adding a points system: you earn points by committing to social outcomes in three categories — affordability, energy efficiency, and accessibility — and the more points you earn, the better your financing terms become. You need a minimum of 50 points to access the program's benefits.

In short, where MLI Standard gives you solid terms with no conditions, MLI Select offers the best terms available — higher leverage, longer amortization, and premium discounts — in exchange for building the kind of rental housing Canada wants more of.

MLI Select can be used to purchase or refinance an existing multi-residential property, or to finance the construction of a new rental building. Both pathways use the same points system, tiers, and premium discounts (all covered below) — but the criteria are assessed differently, and the process and timeline are not the same. Find your situation below.

This is the faster, simpler pathway and the one most investors start with. You're buying — or refinancing — a building that already exists and already has tenants.

• What it finances: the purchase or refinance of an existing 5+ unit rental property.
• How much you can borrow: set by your score, not by whether you're buying or refinancing — up to 85% LTV at 50 points and up to 95% LTV at 70 points or more. CMHC treats the purchase and refinancing of an existing property under the same category.
• How points are assessed: affordability is measured against the rents in the building relative to area median renter income. Energy points are measured against the building's current, pre-improvement performance — so earning them usually means committing to retrofits such as better windows, added insulation, or heat pumps.
• Timeline: shorter. The building and its rental income already exist, so underwriting is more straightforward.
• Best for: investors who want to add a stabilized, income-producing building to their portfolio without taking on construction risk.

Before you commit, dig into how the building actually performs today, because your MLI Select terms hinge on it:

• Current rents and leases — what tenants actually pay, and when leases roll over.
• Net operating income — income after operating expenses, the basis for both value and debt-service tests.
• Vacancy — actual and expected, since CMHC underwrites to a vacancy assumption.
• Deferred maintenance — work the previous owner postponed that you'll inherit.
• Building condition — structure, roof, mechanicals, and remaining useful life.
• Opportunities to improve energy performance — because existing-building energy points are earned by reducing consumption from today's level.
• Whether enough units can meet the affordability requirement — existing-property affordability thresholds are high (see the points tables below), so confirm the rent math works before relying on those points.

For a first-time multi-unit investor, a low-rise apartment building is often the natural entry point: smaller in scale, less expensive to build or buy than a mid- or high-rise, and easier to manage and finance.

These terms describe more than height — they signal how a building is constructed, which drives cost, timeline, and complexity.

• Low-rise — roughly 1 to 4 storeys. Usually built with a wood frame on a simple foundation, often walk-up or with a single small elevator. Wood-frame construction is the cheapest and fastest to build, which is why low-rise is the most accessible category for a smaller investor.
• Mid-rise — roughly 5 to 12 storeys. Typically requires a stronger structural system such as concrete or a concrete-and-steel hybrid, plus elevators and more demanding fire and mechanical systems. Costs per unit rise accordingly.
• High-rise — generally 12+ storeys (often much taller). Built with a reinforced-concrete or steel structural core, multiple elevators, and complex engineering for wind, fire, and services. These are the most expensive and longest to build, and are usually the domain of large developers.

For most people entering multi-residential, low-rise offers the benefits of CMHC financing without the construction cost and complexity of taller buildings.

This pathway finances ground-up construction of a new rental building. It takes longer and carries more risk, but new builds often score energy points more easily because modern construction can exceed code with good design.

• What it finances: the construction of a new 5+ unit rental building.
• How much you can borrow: up to 95% loan-to-cost (LTC) — available even at the 50-point entry level, measured against eligible development costs, not market value.
• How points are assessed: affordability is measured against committed rents relative to area median renter income. Energy points are measured against the National Building Code (NBC) or National Energy Code for Buildings (NECB) baseline for new construction.
• Timeline: longer. CMHC issues a conditional commitment and the loan is advanced progressively as construction proceeds — build this approval time into your project schedule.
• Best for: investors and small developers who want to design a building for maximum points from day one and are comfortable with construction timelines and risk.

Construction lending works differently from a mortgage on a finished building. Here is how the three options compare:

Financing Type	Maximum Financing	Notes
Conventional construction loan	~65–75% of construction cost	No CMHC insurance; higher rates; advances tied to construction progress. Confirm current limits with your lender.
MLI Standard construction	Up to 85% of construction cost	CMHC-insured; no points required; full recourse
MLI Select construction	Up to 95% of eligible construction cost	CMHC-insured; requires 50+ points; best leverage and longest amortization

A few things to understand about construction financing:

• Financing is based partly on eligible project costs — land (up to limits), hard construction costs, and soft costs such as design and permits — not on a finished market value.
• The loan may be advanced progressively during construction. Where insured financing funds the construction or improvements, documentation confirming achievement of the energy-efficiency and accessibility commitments is generally required within 60 days after the last advance. A rental-achievement holdback may also apply.
• Construction budgets, contingencies, and completion risk matter — cost overruns or delays are your responsibility, and lenders expect a realistic contingency.
• Because of holdbacks, contingencies, and financing that lags actual spending, the borrower's equity contribution is usually larger than the simple difference between total cost and the maximum LTC. Plan your equity accordingly rather than assuming a thin "down payment."

Higher loan-to-value or loan-to-cost means less cash tied up in the deal; a longer amortization lowers your monthly payment and improves cash flow. On top of that, MLI Select discounts the CMHC premium by 10% at 50 points, 20% at 70 points, and 30% at 100 points. How the leverage and amortization scale depends on your pathway:

Existing Property (Financed Against Value)

MLI Select Score	Maximum Financing	Maximum Amortization	Min. DCR (Standard Rental)	Recourse
50 points	Up to 85% LTV	Up to 40 years	1.10	Full recourse
70 points	Up to 95% LTV	Up to 45 years	1.10	Full recourse
100 points	Up to 95% LTV	Up to 50 years	1.10	Limited recourse

New Construction (Financed Against Cost)

MLI Select Score	Maximum Financing	Maximum Amortization	Min. DCR (Standard Rental)	Recourse
50 points	Up to 95% LTC	Up to 40 years	1.10	Full recourse
70 points	Up to 95% LTC	Up to 45 years	1.10	Full recourse
100 points	Up to 95% LTC	Up to 50 years	1.10	Limited recourse

The minimum debt-coverage ratio depends on the type of project:

Project Type	Minimum DCR
Standard rental housing	1.10
Other shelter models	1.20
Non-residential space	1.40

Here's a point that trips up a lot of first-time borrowers: the maximum LTV or LTC doesn't set your mortgage on its own. CMHC also tests whether the property's net operating income can carry the debt. For standard rental housing, the minimum debt-coverage ratio is generally 1.10. The approved mortgage is therefore limited by both the applicable LTV or LTC maximum and the property's income-supported borrowing capacity — so a 70-point existing property does not automatically qualify for a mortgage equal to 95% of its value.

Points come from three categories, and you can mix them however you like to reach your target. The thresholds differ between existing buildings and new construction, so both are shown below.

Existing Property

Points	Existing-Property Requirement
50	At least 40% of units at rents no higher than 30% of median renter income
70	At least 60% of units
100	At least 80% of units

New Construction

Points	New-Construction Requirement
50	At least 10% of units at rents no higher than 30% of median renter income
70	At least 15% of units
100	At least 25% of units

Affordability is based on total rent, not unit size. CMHC compares the monthly rent of a designated unit with 30% of the local median renter household income. It does not adjust the threshold based on the unit's floor area or rent per square foot. As a result, smaller units may meet the affordability requirement more easily, even when their rent per square foot is relatively high. The designated rent must then remain within CMHC's permitted limits for the full affordability commitment period, which is typically 10 years (from the date of first occupancy of the project). A commitment of 20 or more years earns an additional 30 points. Affordability is the only category that can reach 100 points on its own.

Existing Property (Reduction From the Building's Current Performance)

Points	Reduction From Current Performance
20	At least 15%
35	At least 25%
50	At least 40%

New Construction (Performance Better Than the Applicable Building Code)

Points	NECB 2020 Pathway	NBC 2020 Pathway
20	At least 25% better than NECB Tier 1	At least 20% better than NBC Tier 1
35	At least 50% better than NECB Tier 1	At least 40% better than NBC Tier 1
50	At least 60% better than NECB Tier 1	At least 70% better than NBC Tier 1

Points are earned through any one of several alternative routes (applies to both pathways). In addition, at both levels all units must be visitable and all common areas barrier-free.

20 points — meet any one of:

• At least 15% of units accessible under CSA B651:23; or
• At least 15% of units using universal design; or
• Rick Hansen Foundation Accessibility Certification with a 60%–79% score.

30 points — meet any one of:

• At least 15% accessible units and at least 85% universal-design units; or
• 100% universal-design units; or
• 100% accessible units; or
• Rick Hansen "Gold" certification with a score of at least 80%.

• Energy efficiency alone can't reach 100 points — it caps at 50, so you must combine it with another category to hit the top tier. Affordability is the exception: it can reach 100 on its own.
• Energy + accessibility maxes out at 80 points (50 + 30).

For a new build, a common route is Energy Level 1 (20 points) + Affordability Level 1 (50 points, i.e., 10% of units) = 70 points, which reaches the Enhanced tier. On an existing building the same 70 points is harder, because Affordability Level 1 there requires 40% of units to be affordable — so existing-building investors often lean on deeper energy retrofits and accessibility to make up the difference.

Note: CMHC is transitioning its energy-efficiency criteria to the 2020 code baselines, with a transition window running to September 30, 2026. Confirm the current energy thresholds with a CMHC-approved lender or energy advisor.

Meeting the unit count and point thresholds is only part of the picture. For standard rental housing, CMHC normally also expects the borrower to demonstrate:

• Proven ability to manage a similar property.
• At least five years of multi-unit management experience — or the use of an experienced property manager.
• Net worth of at least 25% of the loan amount (with a minimum of $100,000). CMHC may allow flexibility on this for applications scoring 100 points or more.
• Guarantee requirements depend on the transaction. Construction and completion take-out financing generally requires a 100% guarantee until projected rents have been achieved and stabilized for 12 consecutive months, after which the guarantee may be reduced to 40%. For the purchase or refinancing of an existing rental property, CMHC generally requires a guarantee equal to 40% of the outstanding loan. Limited-recourse treatment may be available in qualifying cases.

And the property itself must generally contain at least five units and be at least 70% residential by both floor area and lending value. If you don't yet meet the experience or net-worth expectations, partnering with an experienced operator or property manager is a common way to bridge the gap.

The path differs depending on whether you're buying an existing building or building a new one.

1. Identify a five-plus-unit property for sale.
2. Review leases, rents, operating statements and vacancy.
3. Calculate the current affordable-unit percentage.
4. Obtain a building-condition assessment.
5. Determine whether energy retrofits can earn points.
6. Estimate the property's net operating income and Debt Coverage Ratio (DCR).
7. Work with an approved lender or specialized mortgage broker.
8. Obtain the required reports and attestations.
9. Apply under the existing-property pathway.

1. Secure or control the development site.
2. Prepare preliminary plans and a project budget.
3. Determine whether NBC or NECB standards apply.
4. Establish the proposed affordable-unit commitment.
5. Integrate accessibility requirements into the design.
6. Commission preliminary energy modelling.
7. Calculate the expected MLI Select score.
8. Determine eligible costs and likely LTC.
9. Arrange construction and permanent financing through an approved lender.
10. Maintain documentation proving that the completed project meets its commitments.

If your next step is smaller than a five-unit building, our guides to rental property mortgages and investment property financing cover the options for one- to four-unit properties.

It's CMHC's incentive-based mortgage loan insurance for multi-unit rental properties (five or more units). You earn points for affordability, energy efficiency, and accessibility commitments, and more points unlock better financing terms.

You need at least 50 points to access the program's benefits. The scale runs to a maximum of 100.

Residential rental properties with at least five units that are at least 70% residential by both floor area and lending value. MLI Select covers both existing buildings and new construction.

Yes — you can mix affordability, energy efficiency, and accessibility to reach your target. Note that energy efficiency caps at 50 points on its own, and energy plus accessibility maxes at 80; only affordability can reach 100 alone.

A minimum of 10 years, and commitments of 20 years or more earn an additional 30 points.

Yes. Buying an existing 5+ unit rental building is the most common use of the program.

Yes. CMHC treats the purchase and refinancing of an existing property under the same "existing properties" category, so the maximum LTV depends on your score (up to 85% at 50 points, up to 95% at 70 points or more), not on whether the transaction is a purchase or a refinance.

For an existing building, affordability points start at 40% of units (50 points), rising to 60% (70 points) and 80% (100 points).

Against the building's current, pre-improvement performance — a 15%, 25%, or 40% reduction earns 20, 35, or 50 points respectively.

No. At 50 points an existing property is capped at 85% LTV; reaching 95% LTV requires at least 70 points.

Yes. It can fund ground-up construction of a new 5+ unit rental building, with funds advanced in stages as work is completed.

LTC (loan-to-cost) measures construction financing against eligible development costs; LTV (loan-to-value) measures a mortgage against the value of an existing property. Construction is underwritten on LTC.

Generally land (up to limits), hard construction costs, and soft costs such as design, permits, and professional fees. Your lender confirms what qualifies.

New construction is measured against the 2020 NBC or NECB, depending on building type — NBC Part 9 for smaller buildings, NECB for larger ones.

Borrowers claiming energy-efficiency or accessibility points must provide documentation because these commitments are part of the basis on which CMHC grants MLI Select incentives. The requirement applies regardless of whether the work is paid for through the insured mortgage or the borrower's own funds. If the criteria are achieved after mortgage insurance begins, the lender must generally obtain the required attestation and supporting documentation within 60 days after the final advance, unless CMHC approves another deadline.

• MLI Select — official program page (CMHC)
• Multi-unit mortgage loan insurance (CMHC)

Before you commit to a property or a project, it's worth modelling the financing carefully — leverage, amortization, premium, and cash flow all interact. Try our rental property calculator, or read up on rental property mortgages and investment property to see what an MLI Select-backed deal could look like for you.

This page is for general information only and is not financial or borrowing advice. Program terms are set by CMHC and can change; confirm current details with a CMHC-approved lender before making decisions.