Financing rental properties, multiplexes, and apartments with CMHC-backed programs
The Greater Toronto Area has one of the strongest rental markets in Canada. From Toronto’s downtown condo towers to Hamilton’s student rentals and the GTA’s multiplexes, demand for rental housing continues to grow. For investors and developers, the challenge isn’t finding tenants — it’s securing the financing that makes projects feasible.
That’s where CMHC’s Multi-Unit Mortgage Loan Insurance (MLI) programs come in. These programs — most notably MLI Select and Standard Rental Housing MLI — provide investors, builders, and owners with access to higher loan-to-value ratios, longer amortizations, and lower borrowing costs than traditional commercial financing. In short, CMHC-insured multi-unit loans make it possible to fund projects that might otherwise not work on paper.
At Ontario Mortgage Experts, we specialize in structuring and securing CMHC-backed financing for investors across Toronto, Mississauga, Oakville, Burlington, and Hamilton & of course all across Ontario
Book your free MLI consultation today.
Mortgage loan insurance is often associated with first-time homebuyers and insured mortgages under $1.5M. But CMHC also plays a pivotal role in the rental housing sector through its Multi-Unit Loan Insurance programs, which cover properties with five or more residential units.
The purpose of these programs is simple: to encourage the creation, preservation, and improvement of Canada’s rental housing supply. In exchange for meeting CMHC’s underwriting criteria, borrowers benefit from:
While there are several variations of CMHC multi-unit insurance, the two that dominate the market are Standard Rental Housing MLI and MLI Select.
The Standard Rental Housing program is the foundation of CMHC’s multi-unit insurance. It’s designed for traditional rental buildings with five or more units, including new construction, existing properties, or refinancing.
This program is ideal for:
Key Features
This program is widely used for stable, income-producing properties where the goal is long-term financing at favorable rates. It doesn’t require additional commitments (like affordability or sustainability targets), making it straightforward but slightly less flexible than MLI Select.
Launched in 2022, MLI Select is CMHC’s flagship program for multi-unit properties. It’s designed not just to finance rental housing, but to reward projects that contribute to affordability, accessibility, and climate sustainability.
What sets MLI Select apart is its point-based scoring system. Borrowers commit to certain targets (such as setting aside affordable units, building to higher energy efficiency standards, or including accessible features). Each commitment earns points, and the total score determines the loan’s benefits.
The Scoring System
A minimum of 50 points is required to qualify for MLI Select, with higher scores unlocking stronger benefits.
Benefits of MLI Select
For investors, the difference is substantial. A property that barely cash flows under conventional financing can become a strong performer under MLI Select, thanks to the extended amortization and higher leverage.
What makes MLI Select different from Standard Rental Housing is its outcomes-based point system. Instead of every project being treated the same, CMHC rewards projects that contribute to affordability, accessibility, and energy efficiency (climate goals). The more commitments your project makes in these areas, the higher your score — and the more favourable your financing terms.
Here’s how it works:
This means a project that barely cash flows under conventional financing can often achieve very strong numbers with MLI Select.
Affordability commitments usually offer the highest point potential.
👉 For many developers, affordability is the single most powerful lever for hitting 70+ or 100+ points.
Accessibility commitments earn fewer points than affordability, but they’re still important.
👉 While it won’t usually get you to 100 points on its own, accessibility can be the “boost” that pushes a project over the 50-point or 70-point threshold.
Sustainability is the third pillar of MLI Select. Points are awarded for reducing energy use and greenhouse gas emissions compared to baseline standards.
👉 Climate points are often easiest to achieve with new construction, since efficiency can be designed from the ground up. For existing buildings, retrofits (insulation, HVAC upgrades, solar panels) can still unlock points.
In practice, most investors and developers maximize points in the Affordability category because it carries the heaviest weight. However, a balanced strategy often works best:
For example, a new Toronto development might commit 40% of units as affordable for 20 years (major points), design 10% of units as fully accessible (additional points), and meet advanced energy standards (final points). Together, these could easily push the project into the 100+ point range, unlocking maximum benefits: 95% LTV and a 50-year amortization.
While Standard Rental and MLI Select dominate, CMHC also insures other specialized housing types:
These programs are tailored to their respective markets but generally follow similar principles — higher LTVs, extended amortizations, and lower rates compared to uninsured financing.
Applying for CMHC multi-unit insurance is more complex than a standard mortgage. Expect to provide:
Approval timelines can be longer — often several months — especially for MLI Select, given the added scoring system. Planning ahead is essential.
CMHC multi-unit applications are highly specialized. Unlike a bank mortgage, success often depends on how the file is structured and how commitments are documented.
As mortgage brokers specializing in the GTA multi-unit market, we:
