Discover the Secret to 95% Financing for Multi-Family Properties!

When it comes to real estate investing, many professionals can see the potential and advantages of multi-family properties but sometimes find the financial barrier too high. But that doesn't need to be the case. Did you know in Canada, investors can get up to a 95% loan on a multi-family asset through a program called CMHC MLI Select? This incredible initiative is changing the multi-family real estate investment landscape, making it more accessible and viable for you.

What is the CMHC MLI Select Program?

The Canada Mortgage and Housing Corporation (CMHC) Mortgage Loan Insurance (MLI) Select program is designed to facilitate the purchase, refinance and construction of multi-family properties. It provides mortgage loan insurance for loans up to a 95% loan-to-value ratio (LTV) on a broad range of multi-family properties, including rental apartments, student housing, and retirement homes.

Benefits of the CMHC MLI Select Program

• High loan-to-value ratio — access financing of up to 95% of the property's value, significantly reducing the capital you need upfront.
• Low-cost financing — competitive interest rates and terms make your investment more viable and increase potential ROI.
• Flexible terms — repayment terms up to a 50-year amortization period reduce monthly payments and let you tailor the loan to your strategy.
• Reduced debt coverage ratio — the minimum required DCR is reduced to 1.1, compared to 1.2 or more for conventional mortgages (DCR = NOI ÷ mortgage payments).
• Risk mitigation — CMHC insurance protects lenders against default, making it easier to secure financing even with a smaller down payment.

How to Qualify

Borrowers need to commit to any combination of the following social outcomes and achieve a certain number of points based on criteria set by CMHC. The terms of the mortgage insurance and the loan are determined by the number of points achieved:

• Affordability — the proportion of units where rents are at or below 30% of the median income for renters in the relevant market.
• Energy efficiency — enhanced performance compared to the baseline, ranging from 15% to 40% depending on whether the building is newly constructed or pre-existing.
• Accessibility — the level of accessibility and adaptable building design. It can supplement other outcomes but cannot be used alone to reach the required points.

Investing in multi-family properties isn't just about building wealth – it's about creating communities, providing homes, and making a lasting impact.

If you're ready to explore multi-family real estate investment and want to learn more about how the CMHC MLI Select program can benefit you, we are happy to share our experiences. Our team has extensive experience and expertise in achieving the highest level of the CMHC MLI Select program.