Buying your first apartment building is a major milestone. For many new investors, Calgary is one of the most attractive places to start—affordable compared to Toronto or Vancouver, landlord-friendly, and supported by population growth from both interprovincial migration and international immigration. But the first big hurdle? Financing.
Do you go with a traditional commercial mortgage, or take advantage of CMHC’s MLI Select insured financing program? Let’s dive into the details and run the numbers.
Option 1: Traditional Financing: Quick, Flexible, But Heavier on Cash
A conventional commercial mortgage works well if you want speed and flexibility.
Typical terms in Calgary right now:
- Down Payment: 25–30%
- Amortization: 20–25 years
- Rates: Higher than residential (about 1–1.5% above)
- Closing timeline: 60–90 days
Example: 12-Unit in Mount Pleasant
- Purchase Price: $3,000,000
- Down Payment (30%): $900,000
- Loan Amount: $2,100,000
- Amortization: 25 years
- Rate: 6%
Monthly mortgage: ≈ $13,600
If gross monthly rents are $20,000 (12 units × $1,650 avg rent), after subtracting $6,000 in expenses (taxes, insurance, maintenance), you’re left with:
- Net Operating Income (NOI): $14,000
- Cash Flow (after debt): +$400/month
👉 Steady cash flow, but only because you put down almost $1M in equity.
Option 2: CMHC MLI Select: Lower Equity, Longer Amortization, Bigger Cash Flow
The CMHC MLI Select program was designed for investors who want to prioritize affordability, sustainability, or accessibility in their multi-family properties. The biggest advantage? Leverage and cash flow.
Typical terms:
- Down Payment: 5–15% (depending on scoring)
- Amortization: Up to 40–50 years
- Rates: Among the lowest in the market (CMHC-insured)
- Closing timeline: 6–12 months
Example: Same 12-Unit in Mount Pleasant
- Purchase Price: $3,000,000
- Down Payment (15%): $450,000
- Loan Amount: $2,550,000
- Amortization: 40 years
- Rate: 4.5%
Monthly mortgage: ≈ $11,400
Gross rents: $20,000
Expenses: $6,000
NOI: $14,000
Cash flow after debt: ≈ +$2,600/month
👉 That’s 6x more monthly cash flow than the traditional option, while keeping an extra $450,000 in your pocket for renovations or another purchase.
Which Option Wins?
- Traditional financing: Faster, less restrictive, but ties up a lot of capital.
- MLI Select: Slower approval, but huge advantage in cash flow and leverage.
For Calgary, where rental demand is strong and properties are relatively affordable, MLI Select is often the best play, if you can wait for the approval timeline.
At Green Casa, we work with investors to evaluate which financing strategy makes sense based on their goals, timelines, and property type.
