You have the land; you have the money ready. Your MLI Select commitment letter is in your hands. Now comes the part that keeps developers awake at night: the building phase. Managing construction under CMHC MLI Select is very different from a build. If you miss a goal change your plans without asking or fail to write down your progress you could lose your points.
If you lose those points you lose your financing too. In this guide I will show you what managing construction under CMHC MLI Select looks like in real life. I will talk about bonding, how you get paid checking your work and that September 30 2026 energy code deadline. I want to help you keep your project on track and keep your money safe.
Bonding – The Rule You Cannot Skip
Before you pour any concrete you must deal with bonding. Under the MLI Select program CMHC usually asks for 50% labour/material bonding and 50% performance bonding on all building contracts. This rule is there to protect everyone. If your builder stops working or does a job the bond pays to fix the problem.
If you are building something like 24 units or less you might not need bonding if you have good money and a good builder. For big builds bonding is the standard. CMHC does let you try things sometimes like a letter of credit or giving more collateral. However you cannot just skip it. When you are managing construction under CMHC MLI Select get your bonding plan ready before you start digging. You cannot fix this once you start building.
The Draw Schedule – How You Get Paid
When you use MLI Select for construction you do not get all the money once. You get paid in steps. This is called a draw schedule. You get bits of money as you finish parts of the building.
A normal draw schedule looks like this:
- Finishing the foundation (15-20% of the money)
- Finishing the frame and roof (25-30%)
- Finishing the walls (20-25%)
- Finishing everything (25-30%).
Usually, you ask for money a month. CMHC will look closely at the first and very last payments. If you have one builder CMHC checks if that builder is good for the money. If you have a project manager they check the teams like the concrete and plumbing teams.
The best way to succeed while managing construction under CMHC MLI Select is to stay on your schedule. If you miss a step you miss your pay. That can stop your project. Plan your time well. Leave extra room for delays.
Progress Monitoring – CMHC Is Watching
Once you get your letter the hard work starts. CMHC might ask for reports every month, photos or even visits to the site. They want to see that you are building what you promised.
If you are building something in Alberta, CMHC will check the building after it is done. They want to make sure the energy savings and easy access features are actually there. If what you built is not what you promised your score will drop. A lower score could mean you lose your 50-year loan terms.
If you want to change the design you must ask CMHC first. Do not make changes that lower your points. CMHC can take away your deal if the building is too different from the plans. When you are managing construction under CMHC MLI Select treat your plans like they are perfect. You must ask before you change anything.
Post-Construction Verification – Prove What You Built
For buildings, you must prove what you built. CMHC requires an EnerGuide check to see if the building saves as much energy as you said it would. This is where many people run into trouble. Your paper plans might look great. If the real building does not save energy your points will go down.
CMHC might also ask your architect to sign a paper or visit the site to make sure the building is easy for everyone to use. You must send these papers to your lender before you get your mortgage.
Remember, if you change the energy or access parts while building your final score might be lower. If the EnerGuide check shows the building is not as good as the plan CMHC might lower your points and your loan terms.
The September 30 2026 Deadline – Why You Must Act Fast
There is one date you must remember: September 30 2026. After this date CMHC will not use the energy rules anymore. Every new project will have to follow stricter rules. If you are still planning your project time is running out. Projects already being built are okay. New projects need to be careful.
What does this mean? Many projects will get energy points under the new rules. This could mean your loan term goes from 50 years down to 45 years. When you are managing construction under CMHC MLI Select keep this date in your mind. If you want the rules you need to apply before the deadline.
Managing construction under CMHC MLI Select is a deal. From bonding and pay schedules to checking progress and final proof you have to watch every detail. The September 30 2026 deadline makes everything move faster. If you want the standards you need to act now.
The reward is great. You can get up to 95% LTV a 50-year loan and big discounts.. These rewards require you to follow every rule perfectly. Plan well write everything down. Talk to your lender and CMHC all the time. Your money depends on it.
Frequently Asked Questions (FAQs)
CMHC usually wants 50% labour/material and 50% performance bonding on contracts. They might allow things like letters of credit if you ask.
You get money in steps as you finish parts like the foundation, the frame and the final build. Usually this happens once a month.
CMHC checks the building with an EnerGuide test. Looks at accessibility to make sure it works as you promised. If it does not your points will drop.
After September 30 2026 CMHC will use harder energy rules. You will not be able to use the 2015 rules after that.
You must ask CMHC before making changes. Do not change things that lower your points or CMHC might cancel your deal.
From the start to the mortgage it usually takes 18 to 36 months. This includes design, CMHC reviews, building and final paperwork.
Co-Founder & Director
Hafil Perincheeri is an engineer-turned-realtor, investor, and builder based in Calgary, Canada. As Co-Founder and Director of Greencasa, he specializes in home flips, property development, and investment strategies. Since 2019, he has guided clients in home buying, multifamily investing, and financing options like CMHC and MLI Select, ensuring transparent, informed decisions.