What MLI Select Offers
CMHC's MLI Select program provides mortgage loan insurance with preferential terms, including higher loan-to-value ratios and longer amortization periods, for multi-unit residential properties that meet certain criteria around affordability, energy efficiency, or accessibility.
How Points Are Earned
The program uses a points system where borrowers earn points by committing to a certain percentage of units at affordable rents, meeting energy efficiency targets, or including accessibility features. The more points earned across these categories, the better the available terms.
- Affordability commitments for a share of units
- Energy efficiency improvements or standards
- Accessibility features in the building
Who the Program Fits
MLI Select is designed for owners of larger multi-unit residential properties, typically five units or more, including new construction and existing building purchases or refinances. It is generally not applicable to small residential properties like duplexes or triplexes.
Commitments and Compliance
Taking advantage of MLI Select terms comes with ongoing commitments, such as maintaining affordable rents on committed units for a set period. Falling out of compliance can have consequences, so it is important to understand the long term obligations before applying.
Working Through the Application
Applying for MLI Select financing involves working with an approved lender and often a consultant familiar with the points system to structure the project in a way that maximizes eligible terms. Given the complexity, early planning with an experienced broker can make a meaningful difference in the outcome.
Frequently asked questions
- Do I need a bigger down payment for this type of property?
- In most cases yes, since lenders view these properties as carrying more risk than a standard owner-occupied home. The exact amount depends on the property type, the lender, and your overall financial picture, so it is worth getting a clear answer before you start shopping.
- Can I use projected rental income before I have a tenant?
- Some lenders will accept a market rent appraisal or lease commitment for this, while others want to see an existing lease in place. Rules vary quite a bit between lenders, which is one reason it helps to work with a broker who can compare options.
- How long does approval usually take?
- Timelines vary based on the complexity of the file and whether extra documentation like appraisals or building permits are needed. Starting the conversation early, before you are under a tight closing deadline, generally leads to a smoother process.