Youssef KobbiMLI Select: The CMHC Power Move for Canadian Multifamily Owners and Buyers
Powered by Smart Capital – Your Partner in Commercial Real Estate Financing
Canada’s apartment market is buzzing with energy, and for good reason. For both seasoned owners and first-time buyers, there’s never been a better time to explore fresh opportunities in multi-unit real estate. Programs like CMHC and MLI Select make property acquisition and refinancing more attractive than ever before offering bigger loans, longer amortizations, and better rates. MLI select is part of the CMHC program.
CMHC offers multiple programs:
1- Standard Rental Housing (Up to 85%)
2-MLI (Up to 95%)
At Smart Capital, we help real estate investors navigate and capitalize on these government-backed financing tools to grow their portfolios, modernize properties, and maximize cash flow. Here’s what you need to know and how Smart Capital can unlock the full power of MLI Select for your next move.
What Is MLI Select?
CMHC, more commonly known as CMHC (Canada Mortgage and Housing Corporation), plays a central role in financing multi-unit residential properties. Its specialty? Mortgage insurance for rental buildings with five or more units. This federal backing gives lenders the confidence to offer superior terms to borrowers.
MLI Select is CMHC’s latest innovation: a progressive financing product that rewards property owners for going green, supporting affordable housing, and improving accessibility.
How Smart Capital Helps You Leverage CMHC Programs
We know CMHC loans inside out. At Smart Capital, we:
- Structure MLI Select financing tailored to your acquisition or refinancing goals
- Help you optimize your application to earn more MLI Select points
- Connect you with CMHC-approved lenders
- Manage the entire process, from underwriting to closing with speed and transparency
Whether you’re acquiring a 20-unit walk-up in Montreal or refinancing a 40-unit building in Calgary, we tailor a strategy that maximizes your leverage while minimizing your long-term costs.
CMHC Standard Program Rental Housing
Empowering Multi-Unit Financing:
The Canada Mortgage and Housing Corporation (CMHC) facilitates financing for multi-unit residential properties through its standard Multi-Unit Mortgage Loan Insurance program. As an insurer, not a lender, CMHC reduces risk for financial institutions, enabling property owners and developers to access competitive financing. Here’s how the standard program works:
Multi-Unit Coverage
The CMHC standard program insures mortgages for rental properties with 5 or more units, such as apartment buildings and select condominiums. This coverage supports both market-rate and affordable housing projects, making financing more accessible for borrowers.
Support for Acquisition and Refinancing
The program is designed for:
Property Acquisition: Financing for purchasing existing multi-unit rental properties.
Refinancing: Funding to optimize existing assets, including capital for repairs or upgrades to maintain property value and functionality.
Market Resilience
By insuring loans, CMHC encourages lenders to provide financing even in challenging economic conditions, ensuring stability in the rental housing market and supporting the availability of quality rental units across Canada.
Financing Terms
Smart Capital partners with CMHC-approved lenders to deliver tailored financing solutions. Typical terms under the standard program include:
Loan-to-Value (LTV) Ratios: Up to 85% for eligible existing properties, subject to CMHC requirements.
Amortization Periods: CMHC may consider amortization periods of up to 40 years
for existing properties and 50 years for new construction.
Competitive Rates: Lower interest rates due to reduced lender risk, benefiting borrowers with cost-effective financing.
MLI Select: Custom Financing with a Mission
What sets MLI Select apart is its incentive-based structure:
- Green Building Incentives
- Affordability Rewards
- Accessibility Bonuses
You earn points by incorporating features aligned with these goals and the more points, the better the financing.
Smart Capital helps you strategize from day one: Should you add solar? Commit to below-market rents? Upgrade accessibility? We model the ROI of each improvement so you earn the maximum benefits.
Acquisition: Buy Bigger, Smarter
Traditionally, buying a rental building meant high capital outlay and tough loan terms. With MLI Select, and Smart Capital’s guidance, the landscape changes:
- Up to 95% LTV
- Amortizations up to 50 years
- Reduced CMHC premiums
- Lower monthly debt service
Client Example – Financed by Smart Capital:
An investor in Vancouver targets a $10M 24-unit complex. With Smart Capital’s strategy, committing to affordability and heat pump upgrades, they qualify for a 95% LTV and 50-year amortization, putting down only $500K. We structure the deal, guide through CMHC compliance, and secure approval, start to finish.
Refinance: Unlock Capital and Create Value
Already own? Then it’s time to unlock equity, reinvest, and grow.
- Extract Equity: Fund new deals or major renovations
- Improve Cash Flow: Lower interest and stretch payments
- Add Value Strategically: Retrofit buildings to increase rent and valuation
Smart Capital Client Case – Toronto:
A 40-unit building owner wanted to upgrade HVAC, add EV charging, and install a lift. With Smart Capital’s point-boosting blueprint, they unlocked $1.2M in equity and reduced interest payments, all while increasing asset value and tenant satisfaction.
Why Work with Smart Capital?
We’ve helped investors close over $64M in multi-family deals across Canada. Here’s what sets us apart:
- ✅ CMHC/MLI Experts: We know the points system, inside out.
- ✅ Full Deal Support: From prequalification to closing.
- ✅ Bilingual Service: French & English across Canada.
- ✅ Tech-Driven Simplicity: Digital application tools and clear timelines.
With a national presence and a specialized focus on multi-family assets, Smart Capital is your one-stop commercial mortgage partner.
Ready to Explore MLI Select for Your Next Deal?
Apartment ownership in Canada is evolving and those who move smartly will reap the benefits. With Smart Capital as your financing partner, CMHC’s MLI Select program becomes more than a policy, it becomes a growth strategy.
🔑 Start Your Journey with Smart Capital
Let us help you finance smarter, grow faster, and build properties Canadians truly need.
Conclusion
The Canadian multi-unit real estate market is entering a new era, driven by powerful tools like CMHC-backed loans and the MLI Select program. Whether you’re acquiring, refinancing, or retrofitting, Smart Capital helps you tap into these government-backed opportunities with expertise and confidence. From maximizing affordability and sustainability incentives to securing industry-leading terms, our team ensures your investments are not just financially sound, but strategically aligned with long-term growth and impact.
Let Smart Capital turn complex financing into your competitive advantage.
External Links
FAQ – MLI Select & CMHC Standard Rental Housing
Q1: Who qualifies for MLI Select financing?
A: Property owners or buyers of rental buildings with 5+ units who incorporate affordability, accessibility, or energy-efficient features may qualify for enhanced terms under MLI Select.
Q2: What’s the difference between CMHC, MLI Select, and Standard Rental Housing?
A: Think of CMHC (Canada Mortgage and Housing Corporation) as the umbrella organization offering various mortgage insurance programs for multi-unit residential properties.
- CMHC is the federal agency that insures loans making financing more accessible.
- MLI Select and Standard Rental Housing are two different CMHC insurance programs.
Q3: How many points do I need to qualify for better terms?
A: The more points you earn (based on green, affordable, and accessible features), the better your loan terms. A minimum number of points is required to access MLI Select, Smart Capital helps you design a strategy to maximize your score.
Q4: Is MLI Select available for new construction projects?
A: Yes. MLI Select supports both existing buildings and new developments, especially when incorporating sustainable or affordable elements.
Q5: Can I refinance my existing property under MLI Select?
A: Absolutely. Many investors use MLI Select to unlock equity, lower monthly payments, and reinvest in growth or renovations.
Q6: Why should I use Smart Capital?
A: Smart Capital simplifies the CMHC process, secures favorable terms, and offers end-to-end deal support with a bilingual team and digital tools for faster turnaround.
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