CMHC MLI Select is a government-backed mortgage loan insurance program designed to support the development and long-term operation of high-quality rental housing across Canada. It is specifically tailored for multi-family residential properties, including apartment buildings and mixed-use developments with a residential component.
Unlike traditional financing programs that focus mainly on property value and borrower strength, MLI Select rewards projects that contribute positively to communities while also delivering strong financial performance for investors.
The Purpose Behind CMHC MLI Select
The core goal of MLI Select is to encourage rental housing that is affordable, sustainable, and accessible. In exchange for meeting these objectives, property owners and investors receive access to enhanced financing terms that significantly improve project feasibility and long-term returns.
This structure aligns investor incentives with housing needs while maintaining flexibility and profitability.
How CMHC MLI Select Works
MLI Select uses a points-based scoring system. Projects earn points by meeting criteria across three main categories.
Affordability focuses on offering rents below market levels or committing to long-term rental housing.
Energy efficiency rewards buildings that exceed standard energy performance benchmarks, reducing operating costs over time.
Accessibility supports inclusive design features that accommodate residents with diverse mobility and housing needs.
The total score determines the financing benefits available to the investor.
Key Financial Benefits of MLI Select
Higher-scoring projects can qualify for loan-to-value ratios of up to 95 percent and amortization periods of up to 50 years. These features dramatically reduce the amount of equity required upfront and lower the monthly debt service.
For investors, this means improved cash flow, stronger debt coverage, and the ability to scale portfolios more efficiently.
MLI Select can be used for new construction, refinancing, and acquisitions, making it versatile across different investment strategies.
Why MLI Select Is Especially Valuable in Alberta
Alberta’s growing population, strong rental demand, and relatively affordable development costs make it an ideal market for MLI Select projects. Investors can combine favorable financing with market-driven rent growth to achieve competitive yields.
For long-term owners, MLI Select provides stability in an otherwise fluctuating financing environment.
Final Thoughts
CMHC MLI Select is more than a financing option. It is a strategic framework for building resilient rental housing portfolios.
For investors focused on long-term growth, capital efficiency, and asset quality, MLI Select offers a powerful advantage.
