5% Down Payment,
3% Mortgage Interest Rates
If you're looking to invest in real estate for the long term, or want to start with a smaller capital, this opportunity may be ideal for you.
Rather than purchasing a single condo unit,
this program allows you to acquire up to five properties with less risk and potentially higher returns.
We’ve outlined the details in the section below.
If you have any questions, please don't hesitate to reach out.
What is the
CMHC MLI
Select Program?
This program is a real estate investment opportunity backed by CMHC (Canada Mortgage and Housing Corporation), structured as a joint venture between developers and investors for pre-construction rental housing projects.
CMHC evaluates the project's feasibility and financial plan by assessing the underlying real estate asset rather than individual credit scores. Upon approval, CMHC provides mortgage insurance that enables access to exceptionally low interest rates and extended amortization periods, regardless of personal credit history.
Although securing CMHC-backed financing involves a complex and rigorous process, this is managed entirely by an experienced development team. Consequently, individual investors can participate in high-quality real estate projects without navigating the intricate approval procedures themselves.
This structure presents unique investment opportunities:
Investors can acquire between 5 to 10 rental units with significantly less capital than purchasing a single condominium. Additionally, projected net returns range from 20% to 30%, driven by the combination of low mortgage rates and scale-based rental income.
This program does not require a credit score to qualify for a mortgage, broadening investment opportunities to more individuals. Eligibility is based on demonstrated asset holdings rathger than credit history
Minimum requirements include:
-
5% of the total property value in cash
-
10% of the total property value in liquid assets
-
25% of the total property value in net assets
Since mortgage approval is based on the project’s potential and property value, not personal credit, this process does not affect your credit score.
Please note, this real estate investment product can only be accessed through a licensed realtor.
CMHC
MLI Select
Requirements
Key Benefits
Minimal investment
With a down payment of just 5–10% of the total purchase price, you can acquire anywhere from a 5-unit multiplex to a full apartment building. For example, purchasing a 5-unit property valued at $3 million requires as little as $150,000 (5% down) to take ownership.
Low interest rate
CMHC-backed mortgages typically offer interest rates between 0.7% and 2%, which are significantly lower than conventional mortgages that usually average around 3.5% to 3.75%.
Mortgage term
The mortgage offers a fixed interest rate for 10 years and can be amortized over up to 50 years, making it easier to maintain stable and predictable cash flow.
Loan approval without credit checks
Mortgage approval is based on the project’s feasibility and asset evaluation rather than the applicant’s personal credit score.
As a result, no credit check is required.
High return
The low mortgage interest rate enable strong rental profitability, with projected net returns of 20–30% on your capital.
Simplified process
The complex CMHC application process is managed by an experienced development team, allowing investors to participate with minimal paperwork — only basic proof of assets is required.
Estimated Profit Simulation
Meltwater 6 Plex
Price: $2,175,000
Down Payment (5%): $109,000
Required Net Asset Proof (25%): $545,000
Projected Annual Net Income: $26,900 (after all expenses)
→ Approx. 25% Cash-on-Cash Return
Closing Date: October 2025
Annual Expenses
Annual Rental Income
Unit Count
Estimated Annual Net Profit
Annual Mortgage Interest
5% Down Payments
Q&A
1. What is the CMHC MLI Select Program?
The CMHC MLI Select Program is a flexible mortgage insurance product designed to support the development, refinancing, and acquisition of multi-unit residential properties. It offers favorable loan terms and insurance benefits for properties that contribute to affordability, energy efficiency, and accessibility.
2. Who is eligible?
Canadian developers, investors, and property managers financing residential properties with five or more units that meet affordability, energy efficiency, and accessibility criteria.
3. What are the key benefits of CMHC MLI Select?
- High Loan-to-Value (LTV) Ratio: Up to 95% for eligible affordable housing projects.
- Insurance Premium Discounts: For meeting affordability, energy efficiency, or accessibility criteria.
- Extended Amortization: Up to 50 years.
- Streamlined Approval: Faster approval process for qualifying projects.
4. How does the program support affordability?
It provides lower insurance premiums and higher LTV ratios for properties maintaining below-market rents for a portion of units, encouraging long-term affordable housing investments.
5. What are the energy efficiency requirements?
Properties must meet energy efficiency standards through upgrades or new construction. Projects that exceed provincial energy codes by at least 15% qualify for CMHC incentives.
6. Can the program be used for refinancing?
Yes. The program allows refinancing of existing multi-unit properties, enabling reinvestment or upgrades to meet energy and accessibility standards.
7. What is the maximum LTV offered by the program?
The maximum is up to 95% loan-to-cost ratio, depending on program criteria compliance.
8. How does the program encourage accessibility?
Incentives are provided for properties that improve or maintain accessibility features such as barrier-free units or common areas.
9.Is there a limit on the number of insurable units?
No strict unit cap, but the property must include at least five units. Larger projects may receive additional benefits based on program criteria.
10.Are there costs associated with applying?
Costs such as appraisals, legal fees, and insurance premiums may apply. However, meeting the program's criteria can reduce overall financial costs through premium discounts.
11. Can it be used for new construction?
Yes, it applies to both new builds and acquisitions/refinancing of existing multi-unit properties, especially those incorporating affordability, energy efficiency, or accessibility features.
12. How does MLI Select support scaling from small to large investments?
It provides access to wholesale-level financing terms for both small and large projects. Investors benefit from high LTV, long amortization, and lower premiums, enabling scalable real estate investments.
13. Have there been any recent updates to inclusion criteria?
CMHC now allows up to $1.5M in loans with 30-year terms for residential properties. Triplexes and fourplexes are now eligible for 90% LTV and 30-year amortization.
14. How does the 95% loan-to-cost feature work?
Qualified projects can borrow up to 95% of total development costs, including mortgage, construction, legal, and soft costs. Only 5% equity is required from the investor.
15. What are the incentives for projects scoring 100 points?
- Reduced insurance premiums
- Up to 95% loan-to-cost ratio
- 50-year amortization to reduce monthly payments and improve cash flow
16. How does the program define affordable housing?
Affordable housing is defined as units rented below the regional benchmark rent. A minimum of 10% of the units in a property must meet this affordability standard to qualify.
17. What is limited recourse financing and its benefit to investors?
Limited resource financing limits the lender's ability to pursue the borrower beyond the project itself, reducing personal liability and risk exposure for investors.
18. What role does energy efficiency play?
Projects with energy-saving features like upgraded HVAC or insulation score higher and receive better financing terms, improving both sustainability and operating costs.
19. How does the program help ensure positive cash flow for investors?
With up to 50-year amortization, debt service costs are lowered, often allowing for positive cash flow from day one. High LTV also increases capital efficiency.
20. Are all units required to be affordable?
No. Only a minimum of 10% of units must meet affordability standards, allowing developers to maintain profitability on the remaining units.
21. How does the program support building accessibility?
Points are awarded for accessible units or common areas, promoting inclusion and qualifying projects for improved financing terms.
22. Are smaller, affordable units considered unprofitable?
No. Smaller units can still be profitable. While rents are lower, good tenant screening helps ensure quality tenancy and steady income.
23. Can additional fees be charged on affordable units?
Yes. While rent must be affordable, additional charges for services like parking or storage are allowed.
24. What are the benefits of energy-efficient buildings under the program?
They reduce utility costs and enhance resale or refinancing value. Local incentives may also be available for energy upgrades.
25. How can a building meet accessibility requirements?
Most building codes already require accessible features. Including these features often requires little extra cost and helps qualify the project for better financing.
26. What are the main advantages of the program?
- Lower-than-prime interest rates
- Up to 95% loan-to-cost
- Up to 10-year fixed mortgage rates
- Ideal for long-term, stable rental income
27. How does CMHC ensure the financial feasibility?
CMHC requires a Debt Service Coverage Ratio (DSCR) of at least 110%, ensuring rental income covers operating costs plus a safety margin.
28. Why do many small investors not use this program?
Construction projects are complex and time-consuming. Most individual investors prefer turnkey rental properties, while developers manage the project, and allow passive investment.
29. Can individuals with low income or poor credit qualify?
Yes. Approval is based on project feasibility and asset strength, not personal credit or income. Minimum requirements include a 5% down payment and proof of 25% net assets.
30. What is pari passu financing, and how does it benefit investors?
Pari passu financing allows secondary mortgages once a property is stabilized, enabling equity extraction up to 95% for reinvestment.
31. What happens if the project is not approved by CMHC?
If the project is not approved, the deposit is fully refundable.
32. Is mortgage renewal guaranteed under this program?
Yes. CMHC offers a 50-year certificate of insurance, though future program changes are possible.
33. What protections exist if the developer goes bankrupt or costs overrun?
Deposits are protected through land ownership, securing investors against losses.
34. When does mortgage repayment begin?
Repayment starts after construction and stabilization are complete.
35. How is rent determined?
Rent is based on regional market data and CMHC’s benchmark rent standards.
36. How does the HST/GST rebate work for CMHC pre-construction?
The federal government offers a full rebate of the GST/HST portion for new purpose-built rental housing (PBRH). This includes apartments, student housing, and long-term senior rentals.
37. Why might the CRA deny a rebate on a property?
Rebate denials often occurs due to misunderstandings related to unit count. Properties with fewer than 4 units may not qualify, but a group of duplexes under one title may be eligible if properly described as "purpose-built rental with X units."
With Daniel
The CMHC MLI Select Program is a relatively new and lesser-known investment model in the real estate market.
It was developed through collaboration between developers and government agencies to provide a solution for those who want to secure stable assets while targeting high returns.
I personally see significant value in this opportunity, in fact, I’ve chosen to invest in it myself. However, due to limited inventory and strong demand, these opportunities often sell out quickly.
If you're considering investing, I highly recommend acting promptly to explore your options. We’re also hosting informational sessions to help investors better understand how this program works.
If you’re interested, please feel free to reach out — we are happy to help.
Royal LePage Chairman’s Club Award (2022–2024)
Ranked #18 in Royal LePage in 2024
Top 1% in Sales Nationwide (2022–2024)
Royal LePage’s Top 35 Under 35 (2022–2024)
Daniel Kim
With a personalized strategy tailored to your needs, I’m here to help you sell your home fast and for your ideal price. Reach out to me—Daniel Kim—today to get started.