What is the CMHC-MLI Select Program? A Guide for Canadian Homebuyers

The Canada Mortgage and Housing Corporation (CMHC) MLI Select Program is designed to encourage the development and preservation of affordable, sustainable, and accessible rental housing. As part of CMHC’s efforts to address Canada’s housing challenges, the program offers financial incentives to developers and property owners who meet key criteria in these areas.

This article provides an overview of the CMHC MLI Select Program, including its benefits, eligibility requirements, and how it works.

What is the CMHC MLI Select Program?

The CMHC MLI Select (Multi-Unit Mortgage Loan Insurance) Program focuses on multi-unit residential properties, such as apartment buildings. Its goal is to improve housing affordability and sustainability by rewarding projects that incorporate features like energy efficiency, accessibility, and affordability into their design or renovation plans.

Through this program, CMHC offers more favorable loan insurance terms, making it easier for property owners to finance projects that align with these priorities.

Key Benefits of the CMHC MLI Select Program

Preferred Financing Terms:
Borrowers may qualify for higher loan amounts, longer amortization periods, and reduced interest rates based on the program’s scoring system.
Support for Sustainable Housing:
Projects that include energy-efficient upgrades or meet environmental sustainability standards are incentivized through the program.
Promotion of Affordable Rent:
Properties with a focus on providing affordable rental units can receive additional benefits, making it easier for property owners to maintain or develop low-cost housing.
Encouragement of Accessibility:
Projects that include features to improve accessibility for individuals with disabilities receive higher scores, aligning with CMHC’s commitment to inclusive housing.

How the CMHC MLI Select Program Works

The MLI Select Program uses a scoring system to evaluate projects based on three pillars:

Affordability:
Points are awarded based on the percentage of units offered at below-market rental rates.
Accessibility:
Projects that integrate accessible units or enhance building accessibility can earn additional points.
Energy Efficiency:
Higher scores are given to projects that include energy-saving measures or meet sustainability certifications.

The combined score determines the level of benefits a borrower can access, such as extended amortization periods (up to 50 years) or increased loan amounts.

Eligibility for the CMHC MLI Select Program

To qualify for the CMHC MLI Select Program, your project must:

Be a multi-unit residential property (minimum of 5 units).
Incorporate elements of affordability, accessibility, or sustainability into the design or renovations.
Meet CMHC’s general mortgage insurance requirements.

Borrowers should also provide a detailed proposal outlining how their project aligns with the program’s objectives.

How to Apply for the CMHC MLI Select Program

Consult a Real Estate Expert:
Work with a real estate professional who can help you find properties or projects suitable for the program.
Partner with CMHC-Approved Lenders:
Ensure your lender is familiar with the MLI Select Program and can guide you through the application process.
Prepare a Strong Proposal:
Highlight how your project meets the program’s criteria in affordability, accessibility, and energy efficiency.

Conclusion

The CMHC MLI Select Program is a game-changer for developers and property owners committed to creating sustainable and affordable housing solutions in Canada. By offering attractive financing options, the program makes it easier to bring impactful projects to life while addressing some of the country’s most pressing housing challenges.

Questions?

If you have any questions, or would like to setup a buyer or sellers consultation, contact Realtor Sean Findlay at 1-888-450-8301 or Sean.Findlay@Century21.ca

Realtor Sean Findlay