How a CMHC-insured multifamily deal works

1. Is the building eligible?

• Projects need at least 5 units, except retirement homes, which need at least 50 units or beds.CMHC MLI Select page·as of Oct 15, 2026(opens official source in a new tab)
• Eligible: standard rental buildings, single room occupancies (SRO), supportive housing and retirement homes. Student housing qualifies only under energy efficiency and accessibility.CMHC MLI Select page·as of Oct 15, 2026(opens official source in a new tab)
• Non-residential space must not exceed 30% of the gross floor area or 30% of total lending value.CMHC MLI Select page·as of Oct 15, 2026(opens official source in a new tab)
• The project must not be subject to any prohibition under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.CMHC MLI Select page·as of Oct 15, 2026(opens official source in a new tab)

Detail: which projects are eligible.

2. Choose a points tier

MLI Select scores a project on affordability, energy efficiency and accessibility. You can focus on one or combine them.CMHC MLI Select page·as of Oct 15, 2026(opens official source in a new tab)

• A project needs a minimum of 50 points to qualify for MLI Select.CMHC MLI Select fact sheet·as of Oct 15, 2026(opens official source in a new tab)
• Affordability commitments run for at least 10 years; a commitment of 20 years or more earns an additional 30 points.CMHC MLI Select page·as of Oct 15, 2026(opens official source in a new tab)

Detail: points by category and what each tier unlocks.

3. Size the loan

The tier sets the ceiling on loan amount and amortization. Debt coverage then limits what the building’s income can carry.

• Minimum debt coverage ratio (DCR): 1.10 for standard rental housing, 1.20 for other shelter models, 1.40 for non-residential space.CMHC MLI Select page·as of Oct 15, 2026(opens official source in a new tab)
• The maximum amortization is the tier’s number of years or the remaining economic life, whichever is less.CMHC MLI Select fact sheet·as of Oct 15, 2026(opens official source in a new tab)

Detail: tier table; DCR, LTV and LTC in the glossary.

4. Price the insurance

• The premium is an up-front charge, a percentage of the loan; it may be added to the mortgage and is non-refundable. Provincial tax cannot be added to the insured loan amount.CMHC fees and premiums·as of Oct 15, 2026(opens official source in a new tab)
• MLI Select premium discount: 10% at 50 points, 20% at 70 points, 30% at 100 points, applied to the base premium plus any surcharges.CMHC fees and premiums·as of Oct 15, 2026(opens official source in a new tab)
• Extended amortization surcharge: 0.25% for every five-year period beyond the 25-year standard.CMHC fees and premiums·as of Oct 15, 2026(opens official source in a new tab)

Detail: premium schedule and fees, and an illustrative premium calculation (CMHC publishes none).

5. Commit to affordable rents

• Affordable units rent at or below 30% of median renter income for the market, from CMHC’s workbook (2019 data, last updated March 2021).CMHC median renter income workbook·as of Oct 15, 2026(opens official source in a new tab)
• For the whole commitment, increases on designated affordable units cannot exceed what applicable legislation permits (including binding rulings of a provincial or territorial rent authority). If none applies, increases are limited to the CPI figure CMHC publishes.CMHC MLI Select page·as of Oct 15, 2026(opens official source in a new tab)

Detail: affordable-rent rules and the median renter income lookup.

6. Meet the borrower tests

• Borrowers need at least five years of experience managing similar multi-unit properties, or a contract with a professional third-party property manager.CMHC MLI Select fact sheet·as of Oct 15, 2026(opens official source in a new tab)
• Borrowers need a net worth of at least 25% of the loan amount requested, minimum $100,000; CMHC may permit flexibility at 100 points or more.CMHC MLI Select fact sheet·as of Oct 15, 2026(opens official source in a new tab)
• Construction or completion take-out financing: the borrower and guarantor guarantee 100% of the outstanding amount until projected rents are achieved and stabilized for 12 consecutive months; it may then be reduced to 40%.CMHC MLI Select fact sheet·as of Oct 15, 2026(opens official source in a new tab)

Detail: borrower process, including what CMHC does not publish.

7. The lender applies

1. The Approved Lender applies on the borrower’s behalf with a “Request – Certificate of Insurance”.CMHC Request – Certificate of Insurance·as of Oct 15, 2026(opens official source in a new tab)
2. CMHC issues a Certificate of Insurance, which carries Special Conditions the borrower must meet. The commitment letter is the lender’s document.CMHC required documentation guide·as of Oct 15, 2026(opens official source in a new tab)

Detail: what the lender submits.

8. After closing

• Annually, the borrower gives the lender a certificate of compliance supported by a copy of the rent roll.CMHC required documentation guide·as of Oct 15, 2026(opens official source in a new tab)
• Where insured financing funds the work, energy and accessibility documentation is due within 60 days after the last advance.CMHC MLI Select fact sheet·as of Oct 15, 2026(opens official source in a new tab)
• After a Certificate of Insurance is issued, subsequent changes to the loan are subject to post approval fees, and CMHC retains the full application fee.CMHC fees and premiums·as of Oct 15, 2026(opens official source in a new tab)

Questions to put to a lender

CMHC sets the insurance rules, and the lender sets the rate, the other terms and anything CMHC does not publish. These questions follow from the sourced rules above; they are not advice for a specific deal.

• Which points tier does the plan reach, and which premium column and loan-to-value band apply?
• Does the lender’s debt coverage calculation clear CMHC’s 1.10 minimum for standard rental housing?
• How is the net worth test applied (at least 25% of the loan amount, minimum $100,000), and what liquidity does the lender require? CMHC publishes no liquidity percentage.
• Will a rental achievement holdback apply, and on what trigger?
• Which rent rule governs increases on the designated affordable units, and which CPI figure applies?
• What are the lender’s own fees and rate, and how long does its review take?