The program, in plain English
What is CMHC MLI Select?
MLI Select is a federal program that helps build more housing. CMHC insures the mortgage on apartment buildings of 5+ units. Because the loan is insured, lenders can offer terms a normal commercial loan never could, and reward buildings that are affordable, energy-efficient, or accessible.
Up to 95%
Loan-to-value financing
as little as 5% down
50 years
Maximum amortization
vs. ~25–30 conventional
Below-market
Insured interest rates
10-year terms available
1.10×
Minimum debt coverage
CMHC requires buildings to be cash flow positive
How the insurance changes the math
Insurance is the unlock.
When the government insures a mortgage, the lender takes on less risk. So they can offer better terms. That is why MLI Select can give you up to 95% financing, a mortgage up to 50 years long, and a rate below a normal commercial loan.
A longer mortgage spreads the loan over more years, so your yearly payment drops. A lower payment is what lets a building stay cash flow positive, and puts money in your pocket.
Most deals run from $2M to $50M+, from a single purpose-built rental to a large development.
See how MLI Select stacks up against a conventional deal.
Book My Investment ConsultationConventional vs CMHC MLI Select
The difference is bigger than most investors think.
Move the purchase price to see how much capital MLI Select keeps in your pocket.
Conventional multifamily purchase
Purchase price
$5,000,000
Down payment (35–50%)
$1,750,000 – $2,500,000
Mortgage amortization
25–30 years
Interest rates
Commercial interest rates
Mortgage terms
Typically up to 5 years
Building
Older buildings often require significant capital improvements
CMHC MLI Select purchase*
Purchase price
$5,000,000
Down payment (as little as 5%)
$250,000
Mortgage amortization
Up to 50 years
Interest rates
Lower insured rates (subject to lender and program)
Mortgage terms
CMHC insured financing available
Building
Purpose-built rental housing that meets CMHC MLI Select requirements may qualify
Capital preserved with MLI Select
$1,500,000 – $2,250,000
What does this mean?
Instead of tying up $1,750,000 to $2,500,000 as a down payment on a conventional multifamily purchase, a qualifying CMHC MLI Select property may require as little as $250,000 down. That means you can preserve capital for renovations, reserves, or future investments while benefiting from longer amortization periods and insured financing.
*Example shown for illustration purposes only. Actual down payment requirements, financing terms, amortization, interest rates, and eligibility depend on the property, borrower, lender, and CMHC MLI Select program requirements. Not all properties or purchasers will qualify for minimum down payment financing.
The biggest difference
Qualified differently than a mortgage.
A traditional residential mortgage lives and dies on your personal income and credit score. CMHC MLI Select works differently. Qualification rests primarily on the building’s own economics, your net worth, and your liquidity.
That doesn’t mean income and credit stop mattering. You’re still expected to be financially responsible and in good standing. This isn’t a path for someone with no income or serious credit problems. But the emphasis is very different, and the building’s cash flow carries the mortgage. That’s what makes this a genuinely passive investment.
Check if you qualify →The points system
Better buildings earn better terms.
MLI Select scores a building on three things. The more points it earns, the better the deal: a smaller down payment, a longer mortgage, and lower insurance fees.
Silver Spear Realty focuses on sourcing buildings that achieve the strongest possible MLI Select point scores. CMHC provides the insurance program; we are the experts at finding the opportunities that maximize it.
Affordability
Renting some units below the average market rent. This is the biggest way to earn points. This works particularly well in Alberta, where average market rents generally run higher than Ontario, making it easier to meet the affordability component while maintaining strong rental performance.
Energy efficiency
Building better than the energy baseline, which lowers running costs and emissions.
Accessibility
Barrier-free, universal-design units that more people can live in.
The investor advantages
Why investors build deals around it.
Tiny down payment
CMHC insurance lets you buy with as little as 5% down. Where else can you buy a whole apartment building for 5%? Your cash controls far more real estate than a normal 20–35% down deal.
50-year mortgage
You can pay the loan back over up to 50 years. A longer payback means a much smaller payment each year, and that is what leaves real cash flow in your pocket.
Lower, insured rates
Because the government insures the loan, lenders charge a lower interest rate than normal commercial loans. You can lock that rate in for up to 10 years.
Built-in rewards
Buildings that are affordable, energy-efficient, or accessible earn points. More points means an even smaller down payment, lower fees, and better terms.
Qualifying criteria
What you need to bring to the table.
≥ 25%
Net worth
Your net worth should be at least 25% of the building price. Net worth = what you own minus what you owe.
5%
Down payment
As little as 5% of the price goes in as your down payment.
10%
Liquidity
Cash you keep on hand, on top of your down payment, equal to about 10% of the price.
Positive
Cash flow
The building must make money. CMHC only insures deals that earn more than they cost to run.
