Multi-unit mortgage Loan Insurance (MLI) Select

• The project must be a multi-unit residential housing development or existing property with at least 5 units (minimum 50 units/beds for retirement homes).
• The property must be used for eligible housing types such as standard rental housing, single room occupancy (SRO), supportive housing, retirement homes, or student housing (student housing can only qualify under energy efficiency and accessibility criteria).
• The non-residential component of the property must not exceed 30% of the gross floor area and 30% of the total lending value; financing for this component must not exceed 75% of its lending value.
• The borrower must demonstrate competence and experience appropriate to the size and type of the property, with at least five years of management experience in similar multi-unit residential properties, or have a formal contract with a professional third-party property manager.
• The borrower must have a minimum net worth equal to at least 25% of the requested loan amount, with a minimum of $100,000 (with possible flexibility where the application scores 100 points or more under MLI Select).

Who is eligible?

• Developers and owners of new multi-unit residential rental housing projects
• Owners or purchasers of existing multi-unit residential rental properties
• Organizations developing or operating single room occupancy (SRO) housing
• Organizations developing or operating supportive housing
• Organizations developing or operating retirement homes with at least 50 units/beds

Who is not eligible

• Projects that are subject to a prohibition under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

Eligible geographic areas

• Businesses and organizations developing or owning eligible multi-unit housing projects anywhere in Canada, as this program is administered by the Canada Mortgage and Housing Corporation (CMHC), a federal Crown corporation.

• Affordability commitment and rent levels: projects are awarded 50, 70 or 100 points based on the share of units with rents at or below 30% of median renter income, with an extra 30 points for affordability commitments of 20 years or more.
• Energy efficiency and greenhouse gas performance: projects receive 20, 35 or 50 points depending on the percentage improvement in energy performance versus current baseline (existing properties) or 2020 NECB/NBC standards (new construction).
• Accessibility and universal design: projects earn 20 or 30 points based on the proportion of accessible or universal design units, visitability to CSA B651:23, and/or Rick Hansen Foundation Accessibility Certification level.
• Total MLI Select score: a minimum of 50 points is required to qualify; higher total scores (70 and 100+ points) provide access to more advantageous loan insurance conditions such as longer amortization, higher loan-to-value and potential limited recourse.

• A minimum of 50 MLI Select points is required in total (from affordability, energy efficiency and/or accessibility) for a project to qualify under this product.
• Affordability commitments start from the date of first occupancy for new construction or major renovation, and from the interest adjustment date for existing buildings.
• Documentation proving energy efficiency and accessibility outcomes must be provided within specific timelines after work completion or loan advances, depending on whether insured financing or other funding is used.
• Once the energy efficiency and accessibility criteria are met and documented, there is no requirement to demonstrate these outcomes annually, unlike the affordability criterion.