CMHC MLI Select for Developers: 95% Leverage for Rental Construction
CMHC mortgage loan insurance that lets you build rental housing at up to 95% loan-to-cost. Lower equity requirements, 50-year amortization, and reduced premiums — if your building qualifies.
What Is CMHC MLI Select?
CMHC MLI Select is a mortgage loan insurance program that rewards rental housing developers who build energy-efficient, accessible, and affordable buildings with significantly better financing terms.
CMHC MLI Select is mortgage loan insurance for multi-unit rental buildings. It can cover the permanent mortgage only (as a takeout after conventional construction) or both the construction and permanent phases through a single CMHC-approved lender. The “Select” part is a points-based scoring system that rewards energy-efficient, accessible, and affordable buildings with progressively better financing terms.
Two common paths in practice:
- Path A — Construction-to-term: A CMHC-approved lender (MCAP, First National, Peakhill, Canada ICI, and others) handles both construction and permanent financing as one underwriting. Construction advances are CMHC-insured from day one, and the loan converts to a permanent mortgage at stabilization.
- Path B — Completion takeout: You use a conventional construction loan during the build, then refinance into a CMHC-insured permanent mortgage at completion. Since June 2024, CMHC allows non-approved construction lenders to write loans underwritten to a CMHC takeout.
At the highest tier (100 points), the financing covers up to 95% of project costs (LTC) with a 50-year amortization and a 30% discount on the insurance premium. Interest during construction and the CMHC premium can both be capitalized into the loan.
Concrete example: On a $1.19M sixplex at 95% LTC, your permanent equity requirement is only $59,500. If you used a conventional construction loan at 75% LTC, the ~$238K difference between what you put up during construction and what you owe permanently comes back at takeout — capital you can deploy into your next project.
MLI Select applies to new construction and acquisition of existing rental buildings with 5 or more units. New construction uses loan-to-cost (LTC); acquisitions use loan-to-value (LTV) with different tier thresholds. Learn more from CMHC directly →
The Points System: How Scoring Works
MLI Select scores your project across three categories, each with its own point maximum. You need at least 50 points total to access enhanced benefits. Each category can independently score higher than 50, but only the combined total matters for your tier.
Affordability
Up to 100 pts- Rents at or below 30% of area median income
- Rent supplements or housing agreements
- Partnership with non-profit housing organization
- Below-median-market rent commitments
- Commitments to maintain affordability for 10+ years
Helio contribution: Nova Scotia rents naturally fall below national medians. Many Helio projects score 20-40 affordability points based on local market conditions alone. Affordable housing projects with formal commitments can score much higher.
Energy Efficiency
Up to 70 pts- Exceeding National Energy Code benchmarks
- High-performance building envelope
- Energy-efficient HVAC systems
- Net-zero ready or net-zero certification
- GHG intensity reductions vs reference building
Helio contribution: Every Helio building includes ductless heat pumps, HRV ventilation, and triple-pane windows. Our energy modeling consistently exceeds code minimums, typically earning 25-40 energy points.
Accessibility
Up to 50 pts- Accessible unit design (barrier-free)
- Common area accessibility features
- Universal design principles
- Exceeding building code accessibility minimums
- Visitability features in all units
Helio contribution: CMHC-approved designs include accessibility features as standard. Ground-floor units meet barrier-free requirements, and common areas are designed for universal access, typically earning 10-25 accessibility points.
Typical Helio building score: With energy efficiency features built in and Nova Scotia's favorable rent-to-income ratios, most Helio projects score 70–100 points without requiring below-market rents or special housing agreements.
Benefit Tiers: What Your Score Unlocks
Each scoring threshold unlocks progressively better financing terms. The difference between standard insurance and 100 points is transformative.
| Benefit | Standard MLI | 50 Points | 70 Points | 100 Points |
|---|---|---|---|---|
| Max LTC (New Construction) | 85% | 95% | 95% | 95% |
| Maximum Amortization | 40 years | 40 years | 45 years | 50 years |
| Premium Discount | — | 10% | 20% | 30% |
| Limited Recourse | No | No | Available | Available |
| Equity in Permanent Mortgage ($1M) | $150,000 | $50,000 | $50,000 | $50,000 |
For new construction projects. Acquisition of existing buildings uses loan-to-value (LTV) with different thresholds at each tier. Limited recourse means the lender's claim is limited to the property itself, protecting your other assets. Source: CMHC MLI Select Program
How the Financing Works
MLI Select covers the full project lifecycle — from construction through permanent financing. Here is what the capital structure looks like in practice.
What’s included in loan-to-cost: Land acquisition, hard construction costs, soft costs (architecture, engineering, permits, legal), interest during construction (capitalized — no out-of-pocket interest payments during the build), and the CMHC insurance premium itself (capitalizable). This is the denominator that 95% applies to.
Construction advances: Funding is released monthly based on inspections. CMHC reviews the first and last draw directly; the approved lender administers intermediate draws. An independent inspector verifies progress before each release.
Rental achievement holdback: Since November 2024, CMHC applies a holdback on construction advances above 75% LTC. The remaining leverage (up to 95%) is released after the building is complete and rental income is stabilized — typically 12 months. This means developers should plan for ~25% equity during construction, with the excess returned at lease-up.
Helio’s fixed-price advantage: Construction lenders assess cost overrun risk as a primary concern. Helio’s fixed-price contracts with a $1,000/day completion guarantee remove this variable entirely. When the lender knows the construction cost is locked, the risk profile of the deal changes — and Helio provides the cost certainty documentation CMHC and lenders require.
The Developer's Financing Journey
Every rental development follows a two-phase financing path: construction loan in, permanent mortgage out. MLI Select transforms what happens at takeout.
Construction Phase
Plan for ~25% equity during construction. On a $1.19M sixplex, that is ~$297K. Under the current CMHC holdback regime, construction advances cap at 75% LTC regardless of the financing path.
Building Completes
Construction finishes, tenants move in. The short-term construction loan needs to be replaced with a permanent mortgage. This is the decision point.
Permanent Mortgage
With MLI Select, the permanent CMHC-insured mortgage covers up to 95% LTC with 50-year amortization. The construction loan is paid off entirely.
Equity Recaptured
Because the permanent mortgage is larger than the construction loan it replaces, ~$238K of your original $297K equity comes back — ready for your next project.
Conventional
CMHC MLI Select
The difference is at takeout, not during construction. Both scenarios start with the same $297,500 equity during the construction phase. With a conventional permanent mortgage (75% LTC), that equity stays locked in the property — returning ~7% cash-on-cash. With MLI Select (95% LTC), the larger permanent mortgage pays off construction and returns $238,000 of your equity — capital you can deploy into your next build. Cash-on-cash jumps to ~32% on the remaining $59,500 invested.
Based on a 6-unit building with 2BR/1BA units at $1,900/mo, 5% vacancy, 30% operating expenses, 5.5% interest rate. CMHC premium ~4.2% after 30% MLI Select discount plus amortization surcharge, capitalized into loan. Model your exact scenario →
Do You Qualify?
MLI Select is available to developers who meet CMHC’s borrower and project requirements. Here is what you need.
Net Worth
Minimum 25% of total project price. On a $1.2M sixplex: ~$300K. Can combine net worth across multiple borrowers if at least one partner has sufficient financial strength.
Liquidity
10% of property value in liquid assets, separate from the equity contribution. On a $1.2M project: ~$120K in accessible cash or equivalents.
Experience
5+ years managing similar multi-unit residential properties, or a formal property management contract with a qualified third-party firm. First-time developers can qualify with the right management partner.
Application Timeline
Apply through a CMHC-approved lender. CMHC underwriting takes 8–12 weeks. Commitment is valid for 6 months. For construction-to-term, the commitment must be in place before breaking ground.
July 2025 Amortization Surcharges
In July 2025, CMHC introduced amortization surcharges for loans exceeding the standard 25-year amortization. Here is what it means for MLI Select projects.
How the Surcharge Works
CMHC now applies a 0.25% premium surcharge for every 5-year increment of amortization beyond 25 years. For a 50-year amortization (the MLI Select maximum at 100 points), that adds 1.25% to the base insurance premium.
| Amortization | Surcharge | Context |
|---|---|---|
| 25 years | 0.00% | Baseline (no surcharge) |
| 30 years | +0.25% | 1 increment above baseline |
| 40 years | +0.75% | Standard CMHC maximum |
| 50 years | +1.25% | MLI Select 100pts maximum |
Still Worth It?
Yes. MLI Select at 100 points offers a base premium discount of up to 30%. Even with the 1.25% surcharge on 50-year amortization, the net premium remains below what you would pay on a conventional CMHC-insured loan. And the additional 25 years of amortization reduces annual debt service significantly, which is where the real cash flow improvement comes from. The surcharge is a modest cost for a substantial benefit. Source: CMHC MLI Select
Why Helio Buildings Qualify
Every Helio building is designed for MLI Select eligibility from day one. No upgrades needed, no redesign required — the scoring criteria are built into our standard specifications.
Energy Efficiency Built In
Ductless heat pumps, HRV ventilation, triple-pane windows, and high-performance insulation are standard. Our buildings consistently exceed National Energy Code benchmarks.
Accessibility Ready
CMHC-approved designs include barrier-free ground-floor units and accessible common areas. Universal design principles earn accessibility points without added cost.
Affordability Alignment
Nova Scotia rents fall below national medians for many unit types. This means Helio projects often earn affordability points based on natural market conditions, not discounted rents.
Pre-Engineered Application
Helio provides energy modeling reports, cost certainty documentation, and architectural drawings that lenders and CMHC need for the MLI Select application. No third-party consultants required.
Fixed-Price Cost Certainty
Helio’s fixed-price construction contracts with a $1,000/day completion guarantee eliminate cost overrun risk — the primary concern for construction lenders and CMHC underwriters. We provide the cost certainty documentation required for your MLI Select application.
MLI Select FAQ
CMHC MLI Select requires a minimum of 5 purpose-built rental units. This means a standalone fourplex (4 units) does not qualify on its own. However, multi-building sites with 5 or more total units across multiple structures do qualify. A common approach is building two fourplexes on the same property or choosing a sixplex as the entry point for MLI Select eligibility.
A standalone fourplex (4 units) does not meet the 5-unit minimum. However, there are two paths: (1) build multiple buildings on the same site totalling 5+ units, or (2) choose a sixplex or larger building type. Many investors find that stepping up to 6 units unlocks MLI Select financing that more than compensates for the slightly higher project cost. Use our pricing calculator to compare the numbers.
MLI Select scores your project across three categories: Affordability (up to 100 points), Energy Efficiency (up to 70 points), and Accessibility (up to 50 points). You need at least 50 points total to access the first tier of enhanced benefits. At 50 points, new construction already unlocks 95% loan-to-cost and a 10% premium discount. At 70 points you get longer amortization and a 20% discount. At 100 points you get the full package: 95% LTC, 50-year amortization, 30% premium discount, and limited recourse. Helio buildings typically score 70-100 points due to built-in energy efficiency and Nova Scotia's favorable rent-to-income ratios.
CMHC does not set the interest rate — your lender does. However, CMHC-insured permanent mortgages typically receive lower rates than conventional permanent financing because the insurance eliminates the lender's default risk. The real advantage of MLI Select is not the rate itself but the combination of leverage (up to 95% loan-to-cost for new construction), amortization (up to 50 years), and reduced premiums that together dramatically improve cash flow and cash-on-cash returns.
CMHC underwriting typically takes 8–12 weeks from submission to commitment, depending on project complexity and current volume. The commitment is valid for 6 months. Helio provides all required documentation including energy modeling reports, construction cost certainty letters, and architectural drawings. We connect you with CMHC-approved lenders experienced in MLI Select to streamline the process. The application runs in parallel with the permitting phase, so it does not add to your overall project timeline.
As of July 2025, CMHC charges a 0.25% surcharge on the insurance premium for every 5-year increment beyond 25-year amortization. For 50-year amortization, that is a 1.25% surcharge. However, MLI Select at 100 points offers a base premium discount of up to 30%, so the net premium remains below conventional rates. The longer amortization significantly reduces annual debt service, which more than offsets the surcharge cost.
Yes — MLI Select is especially advantageous for affordable housing. The Affordability category can award up to 100 points on its own, meaning a project with strong affordability commitments can reach the top tier from affordability alone. Projects with below-median rents, housing agreements, or non-profit partnerships can earn maximum affordability points. Combined with Helio's energy efficiency and accessibility features, affordable housing projects frequently reach 100 points and access the best possible financing terms. See our affordable housing programs for details.
The CMHC insurance stays with the property, not the borrower. If you sell, the buyer can often assume the existing CMHC-insured mortgage (subject to lender approval), which preserves the favorable MLI Select terms and makes your property more attractive to buyers. If you refinance, a new mortgage application would be required, and the property may qualify for MLI Select again on the new loan. The underlying property characteristics (energy efficiency, accessibility) that earned the original score remain.
CMHC requires borrowers to have a minimum net worth of 25% of the total project price, liquidity of 10% of the property value (separate from the equity contribution), and 5 or more years of experience managing similar multi-unit residential properties. First-time developers can qualify by entering a formal property management contract with a qualified third-party firm. Multiple borrowers can combine their net worth if at least one partner has sufficient individual financial strength.
Yes. There are two common paths: (1) A CMHC-approved lender handles both construction and permanent financing as a single underwriting — construction advances are CMHC-insured from day one, and the loan converts to a permanent mortgage at stabilization. (2) A conventional construction lender provides the construction loan, and you take out a CMHC-insured permanent mortgage at completion. Since June 2024, CMHC allows non-approved lenders to provide construction loans underwritten to a CMHC takeout, giving developers more flexibility in choosing their construction financing partner.
Ready to Build with MLI Select?
Helio buildings qualify for the best CMHC financing terms available. Model your returns or start your project today.