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CMHC MLI SELECT

  • Gordy Sundar
  • Oct 23, 2024
  • 2 min read

CMHC MLI Select is a mortgage insurance program offered by the Canada Mortgage and Housing Corporation (CMHC) designed to support the construction and development of multi-unit residential properties. MLI (Multi-Unit Loan Insurance) Select aims to encourage the construction of rental housing, especially affordable units, by providing favorable financing terms to developers, including private and non-profit organizations.


Key Features:


  1. Flexible Insurance Options:

    • Provides mortgage loan insurance for new construction, purchases, or refinancing of multi-unit residential properties.

    • Applicable to market rentals, affordable housing, student housing, and seniors’ residences.

  2. Reduced Premiums:

    • MLI Select offers reduced premiums for multi-unit housing projects that promote affordability, energy efficiency, and accessibility.

    • The more you achieve in these areas, the lower the premium, as the program encourages sustainable and socially beneficial projects.

  3. Enhanced Loan-to-Value (LTV) Ratios:

    • Higher LTV ratios are available, allowing for financing up to 95% of the lending value, depending on the project’s characteristics, such as the number of affordable units or energy-efficiency standards.

  4. Lower Debt Coverage Ratio (DCR):

    • Allows for lower DCRs, which makes it easier for developers to qualify for higher loan amounts, aiding the construction of new affordable rental properties.

  5. Longer Amortization Periods:

    • Amortization periods can go up to 50 years, reducing monthly payments and making multi-unit rental projects more financially viable for developers.

  6. Focus Areas:

    • Affordability: Projects must include a significant percentage of affordable housing units.

    • Energy Efficiency: Incentives are provided for meeting or exceeding certain energy standards, helping reduce the environmental impact of the building.

    • Accessibility: Additional benefits are offered for buildings designed with accessibility in mind.


Overall, CMHC MLI Select is intended to support sustainable and affordable housing developments, aligning with Canada’s broader goals of improving housing affordability and environmental sustainability.


Gordy Sundar

Mortgage Broker | Mortgageline

M: +1-403-585-0921


 
 
 

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