CMHC MLI Select: A Guide for Ottawa Multifamily Investors

How CMHC’s MLI Select program works for buildings of five units and up, and what it can mean when you buy or build.

Financing guide

What MLI Select is

MLI Select is a CMHC mortgage loan insurance program for rental buildings of five units and up. It rewards owners who commit to affordability, energy efficiency or accessibility with more flexible financing: higher loan-to-value, longer amortizations and lower insurance premiums.

For investors, that flexibility can make a real difference to cash flow and to the equity needed to buy or build. It also comes with commitments that last years, so it needs to be understood before you plan around it.

This is a summary only. Terms are set by CMHC and change from time to time; see the CMHC MLI Select summary and confirm details with your lender or mortgage broker.

5 units

minimum project size

50 points

minimum to qualify

Up to 95%

loan-to-value or loan-to-cost

Up to 50 yrs

amortization at 100 points

How points are earned

The three ways to earn points

Points from each category can be combined.

Affordability

A share of units rented at or below 30% of median renter income. New construction needs 10%, 15% or 25% of units for 50, 70 or 100 points; existing buildings need 40%, 60% or 80%. Commitments last at least 10 years.

Energy efficiency

New buildings earn 20, 35 or 50 points for performing 25%, 50% or 60% better than the reference code. Existing buildings earn the same points for 15%, 25% or 40% reductions.

Accessibility

Level 1 earns 20 points and Level 2 earns 30 points, based on accessible or universal design standards.

Financing terms

What the points unlock

For existing buildings, 50 points allows up to 85% loan-to-value, and 70 or 100 points allows up to 95%. New construction can reach up to 95% loan-to-cost at any qualifying level.

Maximum amortization is up to 40 years at 50 points, 45 years at 70 points and 50 years at 100 points, or the building's remaining economic life if shorter. The minimum debt coverage ratio for standard rental buildings is 1.10.

Source: CMHC, MLI Select summary.

Questions to ask first

Can the building meet the affordability rents for 10+ years?
What would an energy retrofit cost, and what would it save?
How does the higher loan change cash flow and risk?
How will the commitment affect a future sale?
Which lender and mortgage broker will you use?

Explore

More Ottawa multifamily real estate

Duplexes for sale

Two-unit properties for first-time investors and owner-occupiers.

Triplexes for sale

Three units: more income, still simple to manage.

Fourplexes for sale

The largest building still financed as residential.

Sixplexes for sale

Five and six units, eligible for CMHC multi-unit financing.

Apartment buildings for sale

Seven to thirty units for growing portfolios.

Build-to-order rentals

New low-rise rental buildings delivered to investors.

How to evaluate a multifamily property

NOI, cap rates, financing and due diligence.

MLI Select FAQs

How many units do I need for MLI Select?

At least five units, except retirement homes, which need at least 50 units or beds.

Can I use MLI Select to buy an existing building?

Yes. Existing buildings can qualify through affordability, energy efficiency or accessibility points, with different thresholds than new construction.

What happens to the commitments if I sell?

Affordability and other commitments run for a set period. Ask your lawyer and lender how they would apply if you sell during that period, before you commit.