What is CMHC MLI Select?
CMHC MLI Select is a federal mortgage insurance program that lets investors buy new-build rental properties with 5+ units on far better terms than conventional lending. We recommend the 6–10 plex as the optimal entry point for first-time multi-family investors.
Instead of the 20–25% down conventional investment property requires, MLI Select reduces entry to as low as 5% down, extending amortization to 50 years — dramatically lowering monthly debt service and improving projected cash flow.
The program uses a points-based system across three pillars — Affordability, Energy Efficiency, Accessibility. Projects need a minimum of 50 points to qualify; 100+ points unlock the maximum terms.
Why 50-year amortization matters: on a $1.5M mortgage at ~4%, 30-year conventional runs ≈ $7,150/mo; 50-year MLI Select ≈ $5,800/mo — a ~$1,350/mo (over $16,000/yr) cash-flow difference on a single asset, from the amortization schedule alone. (Your rate will vary.)
Why Edmonton?
Why Edmonton captures the full leverage: in Ontario, high prices mean rents can't support a 1.10 DSCR at up to 95% LTV — so CMHC raises the required deposit until they do, often 2–4× the Edmonton deposit for the same building. The program is national; the 5% leverage advantage is not.
Why Alberta does: Edmonton rents relative to price produce a DSCR that qualifies for up to 95% MLI Select. Properties are brand-new construction under the Alberta New Home Warranty, built to CMHC spec with separate meters — in one of Canada's fastest-growing cities, vacancy near 4% in target corridors.
Every sold project has appraised above its purchase price — independent AACI appraisals, $20,000–$200,000 higher. See the appraisal track record →
Investor requirements
Open to Canadian borrowers acquiring 5+ unit residential properties. You don't need high personal income — CMHC qualifies primarily on the building's Debt Service Coverage Ratio (DSCR of 1.10): projected rental income must cover at least 110% of debt obligations.
How the deposit math works
Deposit is 5% of the purchase price. Closing costs (legal, title, adjustments) typically add $8,000–$15,000 on top, and vary by deal.
Deposit figures are ranges that vary by specific project and purchase price — never a fixed total. Cash-flow figures on the inventory page are projected estimates from pro-forma analysis, net of property management fees. Actual results will vary. Inclusions bundled with every property — appliances, window coverings, landscaping, CMHC-compliant build, New Home Warranty — are on the Active Inventory page.
Get the PDF — deposit tables, the 9-step process, and the risk checklist in one printable document.
The 9-step buying process
View the full 9-step buying process with detailed descriptions →
Key risks to understand
Book your discovery call.
A 30-minute call with Kunal is your first concrete step. Here's what we cover:
For general information only, based on assumptions. Not financial, investment, legal, or tax advice. Every purchase is unique — consult your lawyer, mortgage broker, and accountant. CMHC MLI Select terms are subject to change at CMHC's discretion. Kunal Sarhadi is a licensed real estate broker, not a financial advisor.