InsightsWhat the program offers
CMHC-insured multifamily financing can reach up to 95% loan-to-value with amortizations of up to 50 years — terms no conventional lender matches. That combination lowers the equity a sponsor needs and lowers the annual debt service, which is why MLI Select has become the default structure for new purpose-built rental in Ontario.
The insurance premium is the trade: CMHC insures the loan for the lender, and the sponsor pays for that insurance. In exchange the lender can offer leverage, amortization and pricing that an uninsured balance sheet cannot.
What you commit to
MLI Select scores each project on three pillars: affordability, energy efficiency and accessibility. The more a project commits to — deeper affordability levels, lower energy use, more accessible units — the better the leverage, amortization and premium. Commitments are binding for the life of the loan, so they need to be underwritten into the pro forma from day one, not added at the end.
The program applies to new construction and to refinancing existing rental assets, which makes it relevant both at the start of a development and as a take-out when a construction loan matures.
A practical example
An illustrative transaction: a $42M CMHC MLI Select financing for a purpose-built rental in Ottawa. The sponsor's objective was maximum insured leverage and a long amortization on a new rental asset — exactly the profile the program is built for. The file was underwritten first, then matched to the capital source best suited to the asset, market and size.
How to approach it
MLI Select files succeed or fail in the preparation. The underwriting — rent roll or pro forma rents, valuation support, sponsor track record, the affordability and energy commitments — has to be built before the application goes in. Files are reviewed within 24 hours, and the structure is set before any lender or insurer is approached, so the application that lands is the one that was planned.