Introduction: Forget 20% Down: The Rules Have Changed
The real estate investing world used to be simple (and limiting):
“You need 20–25% down to buy an apartment building.”
But that rulebook is being rewritten, especially for those investing in multi-family housing in Alberta.
Thanks to programs like CMHC MLI Select, vendor take-backs, and joint ventures, ambitious investors are getting into 6- to 24-unit buildings with as little as 5% down.
This isn’t magic. It’s a strategy.
Let’s walk through how it works, who it’s working for, and how you can do it too.
🧮 1. MLI Select: CMHC’s Best-Kept Secret
In a high-interest world, most people think borrowing less is safer.
But for real estate investors, smart leverage is how you scale.
MLI Select gives you the ability to:
- Buy with up to 95% leverage
- Spread your mortgage over 40–50 years
- Lock in preferential rates
- Qualify based on building performance, not just personal income
In cities like Edmonton and Calgary, where building values are still grounded, this lets small investors buy big, with minimal cash upfront.
🛠️ 2. What Kind of Properties Work Best?
MLI Select favors:
- New construction multi-family with energy-efficient systems
- Affordable housing units (rented below CMHC’s median rental rate)
- Upgraded older buildings that meet energy and accessibility benchmarks
In Alberta, many new 4-plexes, 6-plexes, and low-rise walk-ups qualify, especially if you plan to renovate and improve building performance.
💵 3. Vendor Take-Backs: The Deal-Sweetener You Shouldn’t Ignore
Here’s how a vendor take-back works in practice:
- Property purchase price: $1.5 million
- CMHC finances 85% = $1.275M
- Seller agrees to hold a second mortgage for 10% = $150,000
- You bring 5% = $75,000
Now, instead of $375K down (at 25%), you’re in for under $100K — on a building producing six figures in gross rent.
These deals take negotiation, but they happen more often than you think, especially with motivated or retiring sellers.
👥 4. Joint Ventures: Build Wealth as a Team
If you don’t have the 5%, but you do have hustle, network, and real estate knowledge, find someone who has the capital.
Alberta has a healthy JV culture, where investors team up to:
- Buy larger properties together
- Split roles and profits
- Create long-term cash flow and equity
The best part? You don’t need to be a millionaire. You just need a clear plan, the right deal, and a solid partner.
📊 5. Run the Numbers Like a Pro
High leverage works if the cash flow works.
That means deep due diligence:
- Run conservative rent estimates
- Factor in all operating expenses (including vacancy, repairs, and property taxes)
- Calculate your Debt Coverage Ratio (DCR) lenders want to see 1.1+
- Know your break-even point
Don’t skip this step.
Just because CMHC lets you buy with 5% doesn’t mean you should unless the building pays you every month.
💬 Final Thought: Alberta’s Market Was Built for Smart Leverage
Most investors in Ontario or BC would kill for Alberta’s numbers:
✅ 6% cap rates
✅ Reasonable per-door prices
✅ Growing rental demand
✅ Landlord-friendly regulations
And now, thanks to CMHC and creative financing tools, you don’t even need massive capital to get in the game.
Just a smart plan.
A clear analysis.
And a management partner (like Green Casa) who helps you protect your investment once the ink is dry.
