Introduction: Investing Shouldn’t End at Retirement
For many Canadians approaching retirement, the idea of owning or investing in real estate feels overwhelming. Big down payments, short mortgage terms, and high monthly payments often seem impossible when you’re living on a pension or fixed income.
That’s where CMHC’s MLI Select program changes the game. It’s designed to make multi-family real estate ownership more affordable and more accessible, even for seniors who may not have the same financial flexibility they once did.
What is CMHC MLI Select?
CMHC MLI Select is a special financing program offered through the Canada Mortgage and Housing Corporation. It helps investors (including retirees) buy or refinance multi-family properties, such as apartment buildings or senior housing facilities, with easier terms.
Here’s why it matters for older Canadians:
- As little as 5% down – Instead of needing 20% or more upfront, seniors can step into property ownership with a smaller investment.
- Amortizations up to 50 years – Stretching payments over a longer period lowers monthly costs, protecting retirement savings.
- Favorable interest rates – CMHC-insured financing often comes with better rates than traditional loans.
Why It’s Perfect for Retirees
Retirees don’t always want risky, high-maintenance investments. They want security, cash flow, and peace of mind. Here’s how MLI Select helps:
- Predictable Income – Rental properties provide steady monthly rent. With CMHC’s low payments, more of that rent turns into income.
- Capital Preservation – Seniors can invest without tying up all their savings in a single property.
- Flexibility – Multi-family properties allow retirees to either live in one unit and rent the others, or simply use them as investment income.
- Legacy Planning – Properties purchased under MLI Select can become long-term assets passed down to children or grandchildren.
How Does it Work in Real Life?
Imagine a retired couple in Calgary looking to invest in a small 6-unit apartment building:
- Price: $1,000,000
- Traditional down payment: $200,000 (20%)
- With MLI Select: Only $50,000 (5%)
- Monthly mortgage payment: Much lower due to 50-year amortization
- Rental income from 6 units: Covers expenses and creates surplus cash flow
Instead of draining their retirement account, they leverage CMHC to build passive income.
Conclusion: Retirement Made More Secure
CMHC MLI Select isn’t just for young investors; it’s a powerful tool for seniors who want to create a stable income without draining savings. By lowering the barriers to real estate ownership, it allows retirees to enjoy financial security and peace of mind while leaving behind a legacy for loved ones.
