CMHC MLI Select

What is the MLI Select Program?

The MLI Select Program, offered by the Canada Mortgage and Housing Corporation (CMHC), provides insurance incentives for multi-unit residential properties. It features a point system based on commitments to affordability, energy efficiency, and accessibility. Qualifying buyers can purchase properties with 5 or more units with only a 5% down payment and benefit from a 50-year amortization period.

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Who is eligible for the MLI Select Program? What are the financial requirements?

Your eligibility is based on some key financial factors which are:

Financial Stability

An applicant needs to provide confirmation of stable income, optimal credit score, and enough funds for the required down payment and closing costs. Here is a list of typical closing costs that could be incurred: appraisal fee, environmental studies (typically required when you have 7 or more units), lender fees, underwriting fees, legal fees for both your solicitor and the lender’s solicitor are all examples of typical closing costs.

Personal Net worth

Provide a Personal Net Worth Statement that shows you have at least 25% of the total loan amount in Personal Net Worth. Example, the total loan amount is $1,500,000 so your minimum Personal Net Worth requirement is $375,000.

Liquidity

For a completion takeout finance with CMHC MLI Select (purchasing the property upon completion) you need to show an additional $100,000 in liquidity in addition to your down payment and closings costs. If you are taking the construction route you need to show 10% of the total loan amount in liquidity in addition to the down payment and closing costs.

Debt Service Coverage Ratio (DSCR)

A borrower’s ability to repay debt obligations which are measured by the total amount of available cash flow relative to the debt payments due annually. The minimum required Debt Service Coverage Ratio (DSCR) is 1.10 or higher.

What other requirements are considered aside from financial requirements?

Real Estate Ownership and/or Property Management Experience

Along with competence in managing similar properties. Or, if you don’t have an established portfolio, you could draft a letter that details what relevant experience and skills you do possess.

What types of properties qualify for the MLI Select Program?

Multi-Family Rental Properties

Buildings with five or more rental units designed for long-term residential use.

Adjacent Properties with Multiple Units

Examples include detached homes with legal suites (e.g., basement or secondary units) that collectively meet the five-unit minimum requirement.

Single-Room Occupancy (SRO) Units

Buildings with small, individual units, often featuring shared amenities like bathrooms or kitchens.

Supportive Housing

Properties offering on-site support services for residents, including mental health support, addiction recovery, or transitional housing.

Retirement and Senior Housing

Facilities designed to accommodate seniors, often with specialized care services, recreational spaces, and accessibility features.

Accessible Housing

Properties designed or retrofitted to include features for individuals with disabilities, such as barrier-free entryways, elevators, and wheelchair-accessible units.

Energy-Efficient Housing

Properties incorporating sustainability measures such as advanced insulation, solar panels, high-efficiency HVAC systems, and LED lighting.

Affordable Housing Developments

Properties where a portion of the units is offered at below-market rental rates, typically no more than 30% of the local median renter income.

Student Housing (Limited Eligibility)

Student housing projects may qualify only under energy efficiency and accessibility criteria.

What other items does CMHC consider when approving an application for the MLI Select Program?

The MLI Select Program awards points based on borrower commitments to affordability, energy efficiency, and accessibility. Accumulating more points will result in more program incentives. Applicants can focus on one area or combine multiple commitments to increase their score. Most applications in Edmonton (or Alberta) generally focus on affordability.

What are the benefits of the CMHC MLI Select Program?

Lower Insurance Premiums
- Reduced mortgage insurance premiums help lower the overall cost of financing multi-unit properties.
Flexible Down Payment Requirements
- Purchase eligible properties with as little as 5% down, which is significantly lower than conventional requirements.
Extended Amortization Periods
- Qualifying applicants can secure up to a 50-year amortization period, reducing monthly mortgage payments.
Incentives for Affordability, Energy Efficiency, and Accessibility
- Higher points in these areas lead to better financial incentives, encouraging sustainable and affordable housing projects.
Support for Larger Investments
- The program is designed to help investors acquire multi-family properties with five or more units, providing opportunities to scale up portfolios.
Improved Access to Financing
- CMHC’s backing enhances lender confidence, making it easier to obtain favorable mortgage terms and conditions.
Encouragement of Sustainable Developments
- Energy-efficient upgrades, such as improved insulation, high-efficiency HVAC systems, and solar installations, are rewarded through additional program benefits.
Affordable Housing Focus
- Projects offering a percentage of units at below-market rent can qualify for enhanced terms, supporting community access to affordable housing.

These benefits make the MLI Select Program a valuable tool for investors and developers looking to promote sustainable, accessible, and affordable housing solutions.

Is it challenging to complete the application process for MLI Select? How long does it typically take to get approved?

The application process does have its challenges and isn’t as straightforward as a traditional residential mortgage application. However, with the right team and your personal commitment to providing the required documentation, approval is attainable. Application reviews typically take 4 to 6 weeks and often involve additional requests for information. Applications can run smoothly and quicker turnaround is possible when submitted applications are complete and organized.

What are the required documents for an MLI Select Application?

Required documents may include:

Appraisal
Market Analysis
Financial Statements
Project overview
Mortgage insurance details
Amortization schedule
Energy efficiency assessment (if you are pursuing energy efficiency points)

How does the MLI Select promote affordability within Edmonton’s real estate market?

The program incentivizes affordability by offering better terms for projects that provide a high percentage of units with rents below established thresholds (market rents). For example, offering 25% of units at or below 30% of the median rental income can earn up to 100 points.

What energy efficiencies are considered within the MLI Select program?

Eligible measures include high-efficiency HVAC systems, LED lighting, enhanced insulation, and solar panels. These improvements are evaluated based on projected savings and environmental impact.

The eligibility targets for the MLI select program for new construction under Energy Efficiency are as follows:

Level 1 – 20% Improvement above code AND 20% reduction in GHG emissions
Level 2 – 25% Improvement above code AND 25% reduction in GHG emissions
Level 3 – 40% Improvement above code AND 40% reduction in GHG emissions

Both targets need to be met to be eligible under each level. To reach any of these levels, the spec and mechanical upgrades will depend on the type/size of the house or unit. In general, for multi units, we typically see upgrades of insulation in all assemblies, plus upgrades in the mechanics as the GHG emissions are affected most by mechanics. The higher the level, the more significant the upgrades. For Level 3, with multi units, it typically takes some solar to reach 40%.

I would like to invest in real estate and want to utilize the MLI Select Program. Where should I start first?

If you’re ready to start exploring options you can book a phone call meeting to discuss the right steps to start your journey. Below is a list of the first crucial steps you will need to take.

Ensure you meet the FINANCIAL ELIGIBILITY requirements for a reasonable budget that will allow you to pursue a property in your marketplace.
- Personal Net Worth that is 25% or more in value of the total loan amount.
- LIQUIDITY – have access to $100,000 liquid assets that are in addition to your down payment and closing costs.
- Have the required down payment (5%) along with all closing costs (appraisal fee, lender fees, legal fees etc.).
Source a Commercial Mortgage Broker or Lender that has a representative who can assist you in the necessary process to put forward an application. You will need to obtain a Letter of Interest/Intent (LOI) from a Lender that is on the Approved Lender list for the CMHC MLI Select program. Your lender, along with their representative(s), will assist in completing an application for underwriting approval with CMHC. Once approved you will obtain what’s called a Certificate of Insurance (COI) from CMHC for your funding.