For many aspiring apartment investors, the biggest hurdle has always been the same: coming up with a large down payment. Traditional financing typically demands 20–25% upfront, which can tie up hundreds of thousands of dollars before you even collect your first month’s rent.
Enter CMHC’s MLI Select program, a game-changing financing option that allows qualified investors to purchase multi-family properties (five units or more) with as little as 5% down and amortizations of up to 50 years. This isn’t just about getting into the market; it’s about staying competitive, scaling faster, and building long-term wealth without draining your capital reserves.
How MLI Select Works – The Points System
MLI Select uses a points-based qualification system. The more points your property earns, the more attractive your financing terms become. Points are awarded based on three key categories:
- Affordability – Offering below-market rental rates for a specified percentage of units over a set period. This makes housing more accessible and can earn you significant points.
- Accessibility – Incorporating features like wheelchair ramps, wider doorways, and adaptable unit layouts that make living spaces more inclusive for tenants with disabilities.
- Energy Efficiency – Upgrading your building to exceed energy performance standards, which not only earns points but also reduces long-term operating costs.
To qualify for the 5% down payment and 50-year amortization, your property must reach a required points threshold by meeting a combination of these criteria.
Why 5% Down is a Game-Changer
Let’s put the numbers into perspective:
- Before MLI Select – Purchasing a $2 million apartment building at 25% down required $500,000 upfront.
- With MLI Select, that same property at 5% down requires only $100,000 upfront.
That’s $400,000 in freed-up capital, money you can put toward renovations that increase rents, a strong reserve fund to safeguard against vacancies, or even the down payment for a second property.
The Power of a 50-Year Amortization
A longer amortization period means lower monthly mortgage payments, which directly improves your cash flow and debt service coverage ratio (DSCR). This is important for two reasons:
- Immediate Profitability – Lower payments help your property generate positive cash flow from day one.
- Future Financing Leverage – A stronger DSCR makes it easier to secure financing for additional acquisitions.
Essentially, MLI Select creates a smoother financial runway, giving you the flexibility to reinvest and grow faster.
Why Calgary and Edmonton are Ideal for MLI Select
Alberta’s major cities are positioned for rental market growth. Key factors include:
- Strong Population Growth – Driven by interprovincial migration and international immigration.
- Job Market Strength – Diverse industries and strong employment rates attract long-term renters.
- Relative Affordability – Compared to Toronto or Vancouver, rental rates in Calgary and Edmonton are competitive while still offering solid returns for investors.
Properties that meet MLI Select’s affordability, accessibility, and energy-efficiency criteria are not only eligible for the best financing terms, they’re also in high demand among tenants.
