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Why Real Estate Developers Should Use CMHC’s MLI Select Program for Multi-Unit Construction
The Canadian real estate market is evolving, and real estate developers are constantly looking for ways to improve affordability and sustainability while securing the best financing options available. One of the most effective ways to achieve these goals is through CMHC’s MLI Select Program. Designed specifically for multi-unit residential construction, MLI Select offers preferential financing terms to developers who focus on energy efficiency, affordability, and accessibility.
If you’re a developer planning a new multi-unit construction project, leveraging CMHC’s MLI Select program can provide significant financial and strategic advantages. Below, we’ll break down the benefits of the program and why now is the perfect time to take advantage of it.
What is CMHC’s MLI Select Program?
The Multi-Unit Mortgage Loan Insurance (MLI) Select program by the Canada Mortgage and Housing Corporation (CMHC) is a game-changing initiative for real estate developers. This program provides insured financing to incentivize the development of multi-unit residential properties that prioritize one or more of the following:
- Affordability – Projects that ensure a percentage of their units remain at below-market rental rates.
- Energy Efficiency – Buildings designed to exceed energy performance standards, reducing long-term operational costs.
- Accessibility – Housing designed to accommodate people with disabilities, ensuring inclusivity.
Under this program, developers can qualify for higher loan-to-value (LTV) ratios, longer amortization periods, and lower insurance premiums depending on how many of the above criteria their project meets.
Why Real Estate Developers Should Leverage MLI Select
1. Access to Higher Loan-to-Value (LTV) Ratios
One of the biggest advantages of MLI Select is that it allows developers to secure higher LTV ratios—up to 95% in some cases—reducing the amount of upfront equity needed. This frees up capital to reinvest in other projects and improve cash flow management.
2. Extended Amortization Periods
MLI Select provides amortization periods of up to 50 years for projects that score high on affordability, energy efficiency, and accessibility. A longer amortization period means lower monthly debt service payments, making projects more financially sustainable.
3. Reduced CMHC Insurance Premiums
Developers who qualify for MLI Select benefits can access significantly reduced mortgage insurance premiums or even premium refunds. Lower insurance costs translate to immediate savings, improving the overall financial viability of a project.
4. Lower Operating Costs Through Energy Efficiency
Energy-efficient buildings reduce long-term operational costs, making them highly attractive to both developers and investors. By incorporating energy-efficient designs, such as enhanced insulation, high-performance windows, and renewable energy sources, developers can:
- Reduce heating and cooling expenses
- Qualify for government grants and incentives
- Increase the long-term value of the property
- Appeal to environmentally-conscious tenants
With energy efficiency requirements tightening across Canada, integrating these features now will future-proof developments against regulatory changes.
5. Meeting Market Demand for Affordable Housing
The demand for affordable rental housing in Canada has never been higher. MLI Select incentivizes developers to dedicate a percentage of units to below-market rents, making them eligible for better financing terms. This not only aligns with federal and provincial housing goals but also provides developers with long-term tenant stability and occupancy rates.
6. A Competitive Advantage in the Marketplace
A project developed under MLI Select isn’t just more sustainable and affordable—it’s also more marketable. Tenants, investors, and municipalities favor developments that align with energy efficiency and affordability goals. By building under MLI Select, developers can attract socially responsible investors and qualify for additional municipal incentives.
How to Qualify for CMHC MLI Select Benefits
To maximize the benefits of the MLI Select program, developers should incorporate features that align with one or more of its three priority areas:
- Affordability: Dedicate a portion of units to below-market rental rates.
- Energy Efficiency: Reduce energy consumption by at least 25% below the national building code standard.
- Accessibility: Ensure a percentage of units meet universal design and barrier-free accessibility standards.
Developers receive a score based on how well their project meets these criteria. The higher the score, the better the financing terms available.
Why I Am the Perfect Broker to Help You Secure MLI Select Financing
Navigating the MLI Select program and securing the best financing requires expert guidance, industry knowledge, and strong lender relationships—and that’s where I come in.
✔ Deep Expertise in CMHC Financing: I have extensive experience structuring financing solutions that maximize MLI Select benefits.
✔ Tailored Loan Strategies: I work closely with developers to align project plans with CMHC criteria to secure optimal terms.
✔ Access to Lenders & Investors: My strong network includes CMHC-approved lenders and private investors, ensuring the best rates and funding opportunities.
✔ Hassle-Free Process: I handle the paperwork, negotiations, and approvals so you can focus on developing high-quality multi-unit housing.
Let’s Get Started on Your MLI Select Project Today!
If you’re planning a multi-unit residential development, now is the time to take advantage of CMHC’s MLI Select Program. By incorporating affordability, energy efficiency, and accessibility into your project, you can reduce costs, improve financing terms, and increase long-term profitability.
📞 Let’s discuss how MLI Select can work for your project!
I look forward to hearing from you in regard to your mortgage needs.
Patrick
p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2024-3000179) Broker (2024-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here
Don’t miss out on this opportunity to secure the best financing terms for your next multi-unit development. Contact me today!
