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I often wonder how some people buy apartment buildings with little money down. The answer is usually the CMHC MLI Select program. If you want to invest in -family homes in Alberta you need to understand this program. It is the important tool for buying or building rental properties in Canada right now. You can buy a property with little as 5 percent equity. In this guide I will explain how MLI Select works in 2026 what the recent changes mean for you and how you can use this program to grow your portfolio. Whether you are an investor or have experience this is information you cannot ignore. What CMHC MLI Select Actually Is Let me explain what CMHC MLI Select is. CMHC does not lend you money directly. A bank or credit union gives you the mortgage and CMHC insures the loan. Because the loan is backed by the government the lender takes on risk. They offer terms, such as higher leverage, longer amortization and lower interest rates. You pay CMHC a premium. The deal becomes cheaper and more forgiving. MLI Select replaced the MLI Flex product in March 2022. It has a points system on top of the insurance. The premium is a percentage of the insured loan. Is usually added to the mortgage. For anyone who wants to invest in -family homes understanding this program is crucial. The Points System: How MLI Select Rewards Better Buildings This is where things get interesting. Every MLI Select project gets points in three categories: affordability, energy efficiency and accessibility. You do not have to meet all three categories. You can focus on one. Combine them to get more points. The points you get the better your financing terms become. For affordability you get points by keeping some units at rents below the median market rent for at least 10 years. If you commit to 20 years you get 30 bonus points. For energy efficiency you get points by building or retrofitting to exceed baseline energy performance standards. For accessibility you get points by building barrier- units. The minimum required score is now 50 points. The Three Tiers: What Each Level Unlocks The points you get determine which tier you qualify for. Each tier unlocks financing. If you get 50 points you can get a 40-year amortization and a 10 percent premium discount. If you get 70 points you can get 45 years and 20 percent off. If you get 100 points you can get a 50-year amortization, up to 95 percent financing and 30 percent off the premium. Let me explain what this means. A 50-year amortization means monthly payments, which makes it easier to qualify for financing. Up to 95 percent financing means you can buy a building with little as 5 percent down. For projects up to $5 million you can put down little as 5 percent. These terms make MLI Select more accessible than commercial financing options. Why Alberta Is the Perfect Market for MLI Select Alberta has advantages that make MLI Select attractive. First there is no rent control. This means you can adjust rents to market rate when units are empty. If market rents increase 5 to 7 percent annually your rental income can increase at that rate. Second Albertas population is growing rapidly. Edmonton and Calgary are expected to grow by 2035. This growth means more people will need properties. The September 30 2026 Deadline: What You Need to Know There is a date to remember: September 30 2026. CMHC announced changes to MLI Select in November 2025. After September 30 2026 new applications will be scored against the 2020 National Building Code and 2017 National Energy Code. This means it will be harder to get points for energy efficiency. Projects that would have qualified for financing under the old rules might not qualify under the new rules. For investors this deadline creates both urgency and opportunity. Projects that qualify under the rules can lock in better terms. How MLI Select Is Reshaping Albertas Rental Supply MLI Select has been responsible for a portion of multi-family new construction in Canada. The program offers interest rates reducing borrowing costs for multi-unit residential property construction, purchase and refinancing. It offers premiums and longer amortization periods based on your level of commitment to affordability, accessibility and climate compatibility. In Alberta MLI Select allows qualifying -family projects to access higher loan-to-value ratios, extended amortization periods of up to 50 years and reduced insurance premiums. This changes how investors structure acquisitions in secondary markets where rental demand remains strong. Real-World Impact: What MLI Select Means for Your Deal Let me give you an example of how MLI Select can transform a deal. With up to 95 percent financing you can buy a $5 million building with $250,000 down. With a 50-year amortization your monthly payments are significantly lower than they would be with a 25-year amortization. This improves your cash flow from day one. The interest rates available through MLI Select are also more competitive. When you combine these factors the program can be the difference between a deal that works and one that does not. Common Pitfalls and How to Avoid Them MLI Select is powerful. It has challenges. CMHC changed its premium schedule in July 2025. Added surcharges. The minimum 50-point threshold means you need to plan. You cannot assume you will qualify. You need a strategy. The affordability pathway often provides the single lever in Alberta but it requires a long-term commitment to keeping units below market rent. The energy efficiency pathway is getting tougher with the September 30 deadline approaching. My advice is to work with professionals who understand the program. They can help you structure your deal to maximize points and unlock the possible terms. Conclusions CMHC MLI Select is transforming -family investing in Alberta in 2026. With its points-based system rewarding affordability, energy efficiency and accessibility the program offers financing terms. For investors who meet the requirements and the September 30 2026 10

If you have been involved in multifamily real estate recently you have probably heard people talking about MLI Select. I have noticed that most investors do not really understand what MLI Select is and how it works. They know it has something to do with CMHC and financing. The details are not clear. This is a missed opportunity because MLI Select is an important financing tool for multi-unit residential properties in Canada right now. It is the program behind apartment construction and refinancing deals in the country. In this guide I will explain what MLI Select is, how the points system works, what is changing in 2026 and how you can use it to improve your deal. What MLI Select Actually Is Lets start with the basics because the name MLI Select confuses a lot of people. MLI Select does not mean that CMHC lends you money directly. Here is how it actually works: a bank or credit union gives you a mortgage and CMHC insures that loan against default. Because the loan is backed by the government the lender takes on risk, which means they can offer you better terms: higher leverage, longer amortization and lower interest rates. MLI Select replaced the MLI Flex program in March 2022 and added a points system. The program is designed to reward projects that contribute to policy goals around affordability, energy performance and accessibility. The more you commit to these environmental goals the better your financing terms become. For example Equitable Bank alone funded $4.3 billion of multi-unit volume in 2025 most of it through MLI Select. Many other lenders are also heavily involved in the program. When people talk about apartments being the number one sector for commercial lender appetite in 2026 MLI Select is the reason that’s possible. The Points System: How You Unlock Better Terms MLI Select uses a points-based system. Your project earns points in three categories. Your total score determines what financing benefits you qualify for. The three categories are: Affordability: you earn points by keeping a percentage of units at rents below the median market rates. The deeper the discount and the longer the commitment period the more points you earn. Energy Efficiency: You earn points by building or retrofitting to exceed baseline energy performance standards. Accessibility: you earn points through barrier- design and accessible unit features. You need least 50 points to qualify for any enhanced terms. The more points you earn the the deal. For example with 50 points you can get a 40-year amortization and a 10% premium discount. With 100 points you can get a 50-year amortization and a 30% premium discount. The 2026 Changes You Need to Know About MLI Select has changed significantly in 2026. If you are not up to speed you could be missing out on serious money or even missing out on financing altogether. The minimum score required is now 50 points up from 12 points. This means you can no longer get terms with a bare-minimum commitment. There are also rules about premium discounts and financing tiers. A 0.25% premium surcharge applies for every 5-year amortization extension beyond 25 years.. There is a important deadline: September 30 2026. After that date CMHC will stop accepting energy efficiency attestations against the building codes. This means that many projects will score energy points under the same building specifications. Why MLI Select Matters for Your Bottom Line Let me give you an example of how MLI Select can make a difference. On a $10 million project with an 80% loan-to-value ratio the mortgage amount is $8 million. A 30% insurance premium discount versus 10% can save you $160,000 to $180,000 in mortgage insurance costs alone. That is before we even talk about the amortization cost and the reduced recourse implications. The 50-year amortization at 100 points can drop your debt service by 8% to 12% compared to 40 years. On an $8 million mortgage that is hundreds of thousands of dollars in annual cash flow improvement. This is why the points system is a financing superpower. For builders doing 5 to 8 unit multiplex projects MLI Select is not optional. It is essential. Without it you are looking at commercial lending: 75-80% loan-to-value ratio, 25-year amortization, higher rates. For a $3 million project that is the difference between $150,000 in equity and $600,000+. Strategic Tips for Maximizing Your MLI Select Score Based on what I have learned from talking to developers and investors who have successfully navigated this program here are some practical strategies: Do not try to max out energy efficiency: you need to combine categories to reach the highest scores. Affordability is your lever: affordability is the only category that can reach 100 points on its own. Plan for the September 30 deadline: if your project is currently in the pipeline and you are relying on the energy code standards you need to submit your application before September 30 2026. Work with an energy advisor: An energy advisor can help you optimize your building design to maximize your points. Talk to your lender: MLI Select applications are submitted through CMHC-approved lenders who use CMHC’s submission systems. Not all lenders are equally knowledgeable about the program. Work with one who has experience. Conclusion MLI Select is a game-changer for mortgage financing in Canada. By projects that contribute to affordability, energy efficiency and accessibility it creates a powerful incentive for investors to build better housing while accessing superior financing terms. Whether you are a first-time multiplex builder or a seasoned apartment investor, understanding MLI Select is not optional. It is the key to making your numbers work in today’s market. The program has gotten more complex in 2026 with minimum scores, stricter energy standards and a looming September 30 deadline. The rewards are worth the effort. Take the time to understand the points system, plan your energy strategy early and work with partners. Your next deal could depend on it. Frequently Asked Questions (FAQs) What is the minimum number 10

I want to tell you a story about a friend of mine. He found this nice downtown loft and he loved it. The light fixtures were great. He signed the lease agreement really fast. In under ten minutes. He did not even read the agreement he just looked at the rent amount. Six months later he found out that he had to pay for a two-thousand-dollar plumbing repair. His rent also went up by fifteen percent because he missed a part in the agreement. We have all been in a hurry to sign the agreement. I want to tell you that the agreement is like a minefield. It can cost you a lot of money if you are not careful. In this guide we will look at ten hidden traps in lease agreements. How to avoid them. 1. Racing Through the Fine Print This happens to all of us. The landlord is waiting for us we have the key. We just want to move in. Rushing through the lease agreement is a big mistake. The fine print is where the landlord hides the costs. These costs include administration fees, cleaning charges and late penalties. I always tell people to read the agreement. It is like a treasure map where every line could lead to something or something bad. You must read each section loud if you have to. It takes an hour to read the agreement and that one hour could save you from a lot of surprise charges. 2. Misunderstanding Who Pays for Repairs The maintenance part of the lease agreement is where the problems start. Some lease agreements use language like “the tenant is responsible for all repairs.” This could mean that you have to pay to fix the roof the heating system or the foundation. I have seen small business owners go out of business because their agreement made them responsible for all the repairs. A fair agreement will separate the repairs that the landlord has to do from the small repairs that you have to do. If your lease agreement does not do this you need to ask for definitions before you sign. 3. Overlooking the “Additional Rent” Trap You have budgeted for the base rent in your lease agreement. If you look at page five you might find the “additional rent” part. This can include property taxes, building insurance and maintenance fees for the areas. I have seen agreements where the additional rent was double the payment. Before you agree to a agreement you need to get a written estimate of all these extra charges. Your agreement should not be a guessing game. You need to know the cost of renting the place. 4. Misreading the Renewal and Termination Rules Your lease agreement will say what happens when the term ends. Some agreements will automatically renew for a year unless you give notice sixty days in advance. Others will require a written termination letter sent in a way. If you miss this deadline in your agreement you will be locked into another year that you might not want. On the hand if you need to leave early your lease agreement might charge you a “liquidated damages” fee that is equal to the remaining rent. You need to study the expiration and exit strategy parts of your agreement carefully. It is very important. 5. Assuming the Lease Agreement Is Non-Negotiable Most renters do not know that the lease agreement is a starting point for a conversation, not a decision. I have negotiated rents, added break clauses and changed the maintenance responsibilities in many agreements just by asking. Landlords want a tenant and they are often willing to change the agreement to get one. Do not be afraid to cross out clauses or add addendums. A flexible agreement that works for both parties is better than an one that leaves you unhappy and struggling. 6. Ignoring the Use Clause Restrictions Your agreement will say how you can use the property. For renters this might mean no home-based businesses or no pets. For businesses it can prohibit activities restrict signs or limit the hours of operation. I have heard stories of people who signed a agreement for a space only to find out they could not cook food on-site because the agreement said it was for office use only. Always check your intended use with the permitted use clause in the lease agreement. If the language is too narrow ask for it to be broadened before you commit. 7. Failing to Document the Property’s Condition Your lease agreement will usually say that you have to return the property in the condition it was in except for normal wear and tear.. Without evidence of the original condition you are at the landlord’s mercy when it is time to move out. I always take a video and photos of the property before I move in. I attach these to the  agreement as an appendix if possible. If the landlord tries to charge you for a -existing stain your documented evidence will protect you. 8. Missing the Notice Period for Moving Out This trap is very common and very frustrating. Your lease agreement will have a clause that says how days before moving out you have to give written notice. Often thirty, sixty or even ninety days. If you forget many agreements will automatically renew for a month. Charge you an extra month’s rent. I recommend setting a reminder six months into your lease to check the notice period. Your agreement will not remind you. If you miss the window you will pay dearly for that mistake. 9. Ignoring Subletting and Assignment Clauses Life can change quickly. Maybe you get a job in another city or your partner moves in. Your lease agreement will have rules about who can live on the property. Many agreements require the landlord’s written permission for any subtenant or additional occupant. If you bring in a roommate or sublet without approval you are breaking the 10