Multi-Unit Residential Financing
For experienced investors interested in property management and venturing into the commercial sector, CMHC MLI SELECT offers attractive financing options for multi-unit residential properties.
What is CMHC MLI SELECT?
MLI SELECT is a mortgage loan insurance product from Canada Mortgage and Housing Corporation (CMHC) designed for:
- Rental apartment buildings with 5+ units
- New construction or existing properties
- Standard or affordable housing projects
Benefits of MLI SELECT
Competitive Financing
- Up to 95% loan-to-value for affordable housing
- Up to 85% loan-to-value for standard properties
- Amortization up to 50 years
- Lower interest rates than conventional commercial loans
Premium Reductions
Earn premium discounts for projects that include:
- Energy efficiency improvements
- Accessibility features
- Affordability commitments
Flexible Terms
- Fixed or floating interest rates
- Progress advances during construction
- No personal guarantee required in many cases
Who Should Consider MLI SELECT?
This program is ideal for:
- ✓ Experienced real estate investors
- ✓ Property developers and builders
- ✓ Those looking to scale their rental portfolio
- ✓ Investors seeking long-term cash flow
- ✓ Those interested in affordable housing development
Note: This is not suited for beginners. Multi-unit properties require significant management expertise and capital reserves.
Property Requirements
Eligible properties must:
- Have 5 or more self-contained residential units
- Be located in Canada
- Meet CMHC’s property standards
- Have stable rental income (for existing properties)
- Meet energy efficiency standards
The Application Process
- Initial consultation - Discuss your project and goals
- Pre-qualification - Review financials and property details
- CMHC application - Submit detailed application package
- Property appraisal - Third-party valuation
- Commitment letter - Receive approved terms
- Closing - Finalize financing
Investment Potential
Multi-unit residential properties can offer:
- Consistent cash flow from multiple tenants
- Economies of scale in property management
- Portfolio diversification beyond single-family homes
- Appreciation potential in growing markets
- Tax advantages through depreciation and expenses
Ready to Scale Your Portfolio?
If you’re an experienced investor ready to expand into multi-unit residential properties, let’s discuss how CMHC MLI SELECT can help you achieve your investment goals.