Understanding CMHC’s MLI Select Program

Ontario’s housing market is intense, especially if you’re trying to invest in rental properties or build new units. Prices are high, demand is higher, and finding financing that actually works can feel like searching for a needle in a haystack.

But worry not, there is a solution: CMHC’s MLI Select program.

Launched in 2022, this program offers a flexible, investor-friendly path to financing multi-unit residential projects, with terms that are hard to beat. We’re talking low down payments, up to 50-year amortizations, & serious incentives if your project supports affordability, accessibility, or energy efficiency.

If you’re looking to develop or acquire rental housing in Ontario, whether in Toronto, Vaughan, Mississauga, or anywhere, the rental crunch is real; this program is worth your attention.

Hi, my name is Gatin Gill, and I’ll break down how MLI Select works in this guide, and tell you who it’s for, what you’ll need, and why it could be a game-changer for your next real estate project.

What is the CMHC MLI Select Program?

The CMHC MLI Select Program is a mortgage insurance product designed for one thing: making it easier to build and maintain rental housing that’s affordable, accessible, and energy efficient.

This program insures loans for multi-unit residential properties with five or more units. So, whether you’re planning to build a new apartment building or buy and renovate an existing one, MLI Select can help you secure better financing terms.

It replaced the older MLI Flex program back in March 2022, and it’s part of Canada’s larger effort to tackle the housing crisis, especially in high-demand provinces like Ontario.

Why does this matter to investors here? Because Ontario’s cities are growing fast. Toronto has already updated zoning rules to allow 5-unit multiplexes in areas that used to only permit single-family homes. In other words, the timing is right, and MLI Select fits perfectly into this shift.

This program is like a piece of a larger puzzle and works hand-in-hand with other federal housing initiatives, for example, the Apartment Construction Loan Program. Why? Making it easier for developers and investors to create long-term, meaningful impact.

Read: Getting a Mortgage for a Pre-Construction Condo

Key Features & Benefits

CMHC’s MLI Select isn’t just about getting better rates; it’s about having better choices. The program comes with a bunch of features that truly help investors grow or improve their rental portfolio.

Let’s start with the financing:

• Up to 95% loan-to-value or loan-to-cost
• 50-year maximum amortization period
• Discounted mortgage insurance premiums
• Fixed or floating interest rates with capped ceiling
• As little as 5% down payment

Great fit for high-demand rental markets like:

• Toronto
• Mississauga
• Vaughan

Socially responsible investing made easier through:

• Affordable rent structures
• Barrier-free and accessible unit design
• Energy-efficient buildings and upgrades

Bottom line: MLI Select supports strong cash flow, portfolio growth, & meaningful impact, all at the same time.

Eligibility Criteria

Before jumping in, see if your project qualifies. MLI Select is made for investors who are in it for the long haul, focused on sustainable housing. Here’s what you’ll need to qualify:

Property Requirements:

• Minimum 5 residential units (apartments, multiplexes, student or supportive housing) 
• Compliance with at least one pillar: affordability, accessibility, or energy efficiency
• Mixed-use buildings allowed (non-residential space must be 30% or less of total floor area)

Borrower Requirements:

• Minimum net worth of 25% of the loan amount (e.g., $1.5M for a $6M loan)
• At least 5 years’ experience managing multi-unit residential properties
• Option to contract with a qualified property management company if not self-managed
• Minimum debt coverage ratio (DCR) of 1.1 for financial stability

Documentation:

• Financials (income statements, net worth proof, cash flow projections)
• Legal paperwork (title deed, existing lease agreements)
• Project plans (designs, construction/renovation scope, timelines)
• Accessibility attestation (e.g., CSA B651:23 compliance)
• Energy simulation report (by a certified professional or engineer)
• Annual compliance confirmations after project completion

It might seem like a lot — and yes, it’s thorough — but that’s exactly what protects lenders and borrowers. Plus, the long-term benefits are more than worth the upfront effort.

The Points System

Here’s where things get interesting.

CMHC’s MLI Select program uses a points-based system. The result will determine how generous the financing terms will be! It works like a rewards program; the more your project aligns with affordability, accessibility, and energy efficiency, the better your terms.

To qualify, your project needs a minimum of 50 points, but the sweet spot is 100 points. That’s where the real perks kick in: higher loan ratios, longer amortizations, and even limited recourse loans. As they say, you get out what you put in.

Points Categories

We have three parameters here:

Affordability:

• 50 points: 10% of units priced at 30% of median renter income (new builds), or 40% of units (existing properties)
• 70 points: 15% / 60% of units
• 100 points: 25% / 80% of units

Commitment to affordability ranges from 10 to 20 years, with annual rent increases tied to inflation or rent control.

Accessibility:

• 20 points: Minimum 15% of units meet CSA B651:23 or Rick Hansen Certification (60–79%)
• 30 points: 85–100% of units with universal design or Rick Hansen Gold (80%+)

Every unit must be 100% visitable, with barrier-free common areas — no exceptions.

Energy Efficiency:

• 20 points: 20% reduction over building code (new) or 15% over baseline (existing)
• 35 points: 25% reduction
• 50 points: 40% reduction

The more points you rack up, the better your loan terms. And with proper planning, hitting the 100-point mark isn’t out of reach, especially if you design with intention from day one.

Points Table:

Criteria	Points	Pre-Construction Property	Existing Property
Affordability	50	10% of units at 30% median renter income	40% of units at 30% median renter income
	70	15% of units at 30% median renter income	60% of units at 30% median renter income
	100	25% of units at 30% median renter income	80% of units at 30% median renter income
Energy Efficiency	20	20% reduction over NECB/NBC	15% reduction over baseline
	35	25% reduction over NECB/NBC	25% reduction over baseline
	50	40% reduction over NECB/NBC	40% reduction over baseline
Accessibility	20	Min. 15% units accessible (CSA B651:23) or Rick Hansen Certification (60–79%)	Same as pre-construction
	30	Min. 15% units accessible + 85% universal design OR 100% universal design OR Rick Hansen Gold (≥80%)	Same as pre-construction

Financing Incentives

So, what do those points actually get you? Let’s break it down:

Table for Existing Properties:

Min. Points	LTV	Debt Coverage Ratio	Amortization	Recourse
50	Up to 85%	Min. 1.1	Up to 40 years	Full recourse
70	Up to 95%	Min. 1.1	Up to 45 years	Full recourse
100	Up to 95%	Min. 1.1	Up to 50 years	Limited recourse

Table for New Properties:

Min. Points	LTC	Debt Coverage Ratio	Amortization	Recourse
50	Up to 95%	Min. 1.1	Up to 40 years	Full recourse
70	Up to 95%	Min. 1.1	Up to 45 years	Full recourse
100	Up to 95%	Min. 1.1	Up to 50 years	Limited recourse

Important notes:

• Non-profit projects or those with a social mandate may be eligible for limited recourse loans, even at 65% LTV, as long as they hit 100 points.
• Recourse matters: limited recourse means your personal assets are protected — a big plus if things ever go sideways.
• Fraud or environmental liabilities? Those still fall on you, even under limited recourse. No loopholes there.
• Replacement reserve requirements may apply, depending on the project and borrower profile.

In short: Hit higher point targets, and you unlock some of the best financing terms available in the country, with lower risk and more breathing room to grow.

Application Process

Applying for MLI Select isn’t something you do on a coffee break, but with the right preparation and team, it’s absolutely doable. 

Here’s how to navigate it:

Step 1: Prepare Your Documentation

Gather your paperwork early — trust me, it’ll save you headaches later.

Financials:

• Income statements
• Balance sheets
• Cash flow projections
• Net worth confirmation

Legal Documents:

• Property title
• Lease agreements (if applicable)

Project Details:

• Architectural drawings
• Renovation or construction plans
• Timeline and budget
• Affordability, accessibility, and energy efficiency commitments

Additional Reports:

• Accessibility attestation (CSA B651-23 or equivalent)
• Energy simulation report (from an engineer or Certified Energy Manager)

Step 2: Engage the Right Professionals

This isn’t a DIY project. Work with:

• A mortgage broker or advisor experienced in MLI Select
• Architects and energy consultants for compliance
• A property manager, if you don’t have multi-unit experience

Tip: A solid team can mean the difference between approval & delay, or worse, rejection.

Step 3: Submit Your Application

• Fill out the Certificate of Insurance form
• Submit through a CMHC-approved lender or broker
• Include all required documents and any fees
• Make sure to clearly explain how your project meets the program pillars

Step 4: CMHC Review & Approval

• CMHC will review your file (this can take a few weeks, depending on complexity)
• Be ready to provide extra info during the 14-day cooling-off period
• If approved, you’ll receive a commitment letter outlining insurance terms

Step 5: Finalize Your Financing

• Use the commitment letter to secure your mortgage
• Stick to CMHC’s conditions, especially around rent levels and code compliance
• Keep copies of everything (seriously, don’t rely on memory here)

Step 6: Track Your Status

• Use CMHC’s online portal to check progress
• Respond quickly if more info is requested

Yes, it seems a lot, but the payoff is worth the paperwork.

Why Ontario Investors Should Care

Let’s be real,  the rental market in Ontario is no walk in the park. And if you’re thinking about investing in multi-unit properties, the time is now, and CMHC’s MLI Select program is tailor-made for this moment.

Market Opportunity

Ontario’s urban centres are evolving fast. 

• New zoning changes in Toronto allow 5-unit multiplexes in former single-family zones 
• Rapid population growth, driven by immigration and urban migration
• Persistent supply shortages, especially for affordable rentals

That means there’s a real opportunity for investors who can bring new units to market, especially ones that meet MLI Select’s criteria.

Financial Benefits

This program isn’t just about doing good — it makes business sense too.

• 5% minimum down payment
• Up to 50-year amortizations = lower monthly payments
• Discounted insurance premiums
• Stronger long-term cash flow and ROI
• Easier scaling of rental portfolios

When you combine low entry costs with long amortizations, you’re unlocking a rare kind of breathing room in a tight market.

Social Impact

Let’s not forget, MLI Select isn’t just about better numbers. It’s about 

• Affordable units for renters who need them
• Accessible design for inclusive living
• Energy efficiency for a lower-carbon future

That kind of social value isn’t just good karma — it also helps reduce vacancy risk, improve tenant satisfaction, and future-proof your investment.

So yes, this program checks the boxes. Financial. Strategic. Ethical. It’s a smart play in a high-demand, high-cost region like Ontario.

CMHC MLI Select Program: Toronto Affordability Tiers and Income/Rent Figures

Region	Median Renter Household Income (2024)	Affordable Rent (≤30% of Median Income)	Affordability Tier	% of Units at Affordable Rent	Points Earned	Financing Impact (LTV/LTC, Amortization)
Toronto CMA	~$75,000	~$1,875/month	Tier 1 (Pre-Construction)	10% of units	50	Up to 85% LTV, 40 years, full recourse
			Tier 2 (Pre-Construction)	15% of units	70	Up to 95% LTV, 45 years, full recourse
			Tier 3 (Pre-Construction)	25% of units	100	Up to 95% LTV, 50 years, limited recourse
			Tier 1 (Existing)	40% of units	50	Up to 85% LTV, 40 years, full recourse
			Tier 2 (Existing)	60% of units	70	Up to 95% LTV, 45 years, full recourse
			Tier 3 (Existing)	80% of units	100	Up to 95% LTV, 50 years, limited recourse

Challenges & Considerations

Like any serious investment program, better to go in eyes wide open!

Complex Application Process

This isn’t your average mortgage application; it’s more detailed, more technical, and takes more time.

• Detailed reports on energy efficiency, accessibility, and affordability
• Proof of net worth and experience in property management
• Third-party attestations (yes, they’re mandatory)
• Estimated approval timeline: 8 to 12 weeks, with a 6-month window to close once approved

If you’re not organized — or working with the right team — things can fall through the cracks.

Program Updates

MLI Select is relatively new, and CMHC is still refining the rules. One big recent change:

• All units must be in a single building or on one legal title
• Bundled properties (e.g., multiple homes on separate titles) no longer eligible
• Full compliance with NECB 2017 and NBC 2015 building codes required
• New (Nov 2024 Update): Itemized operating costs (from past 12 months) for existing properties — summary statements no longer accepted

In short: what worked last year might not fly today, so stay up to date.

Risk Mitigation

As with any large investment, risk is part of the game, but manageable. How? 

• Work with experienced professionals (brokers, consultants, developers)
• Be honest and accurate with your application
• Watch out for environmental issues or past site liabilities
• Keep detailed documentation, even after approval

Also, remember: limited recourse doesn’t mean zero accountability. If there’s fraud or major non-compliance, you’re still on the hook.

Tips for Success 

The process can feel overwhelming at first, but with a few moves, you’ll stay ahead of the game.

Start Early

• Don’t wait until your project is shovel-ready
• Application reviews can take 8+ weeks, sometimes more
• Early planning = fewer surprises later

The best time to plant a tree was 20 years ago; the second-best time is now.

Get Your Paperwork Right

• Complete, accurate documentation makes a huge difference
• Missing details or vague commitments can delay approvals
• Triple-check your affordability, accessibility, and energy targets

Assemble a Solid Team

• Experienced mortgage broker (ideally someone who’s done MLI Select deals before)
• Architect or consultant for accessibility planning
• Certified Energy Manager or engineer for energy modelling
• Property manager (especially if you don’t have 5+ years of experience)

Good partners don’t just help you qualify; they help your project actually succeed.

Design With Points in Mind

• Plan from the start to meet or exceed 100 points
• Integrate affordability, accessibility, and energy efficiency into your build, not after the fact
• High-point projects unlock better terms and more financial breathing room

Stay Compliant Post-Approval

• Annual attestations are required
• Rent caps, accessibility standards, and energy targets must be maintained
• Non-compliance can cost you both money and reputation

Bottom line? Be proactive, stay organized, and surround yourself with experts.  

Case Study: Success in Vaughan with MLI Select

“We were looking to redevelop a triplex in Vaughan into a 6-unit rental with energy-efficient upgrades and accessible design. Our broker suggested the MLI Select program, and it turned out to be a game-changer. We qualified for 95% financing with a 50-year amortization, which gave us the flexibility we needed. Working with a team that understood local zoning and CMHC requirements made all the difference.”
— Amir S., Investor & Developer, Vaughan

This project hit 100 points by committing to long-term affordability and achieving a 30% energy use reduction; a win for the numbers and the neighbourhood.

Bottom Line

The CMHC MLI Select program isn’t just another financing option—it’s a smart move for Ontario investors looking to grow their portfolios and support long-term housing solutions. With perks like low down payments, longer amortizations, and strong incentives for affordability, accessibility, and energy efficiency, it gives you a real edge in today’s competitive market.

Work with local brokers and MLI Select experts who understand Toronto, Vaughan, and Mississauga zoning to maximize your approval and financing. Contact us at Platinum Condo Deals today and take the first step toward smarter real estate investing in Ontario.