Canada Mortgage and Housing Corporation (CMHC) is committed to delivering more affordable, sustainable, and accessible housing units to Canadians. Their new MLI Select program is designed to encourage multi-unit property owners across Canada to build, maintain, and renovate units that deliver these outcomes.
CMHC is launching the program on March 7, 2022 – which will replace their existing MLI Flex program.
MLI Select will use a points system designed to offer different financing options to landlords based on the strength of the social outcomes of the property. In addition, they are offering a range of insurance benefits based on a property’s affordability, efficiency, and accessibility criteria.
About the incentives
The MLI Select program is meant to encourage developers and property owners to build units that deliver meaningful affordability, sustainability, and accessibility outcomes by offering incentives, which include:
|Reduced CMHC premiums
|Longer amortization periods
|Higher loan to value (LTV)
|Lower Debt Service Coverage (DSC)
CMHC has designed the program such that refinances and acquisitions of existing units will also have the ability to qualify for financing under MLI Select.
Other key details
MLI Select uses the same application process as MLI Flex, however additional documentation may be required, particularly for energy efficiency and accessibility commitments.
|New Leverage and Amortization with MLI Select
|Maximum leverage up to 95% LTC
|Maximum amortization up to 50 years
CMHC has created additional resources to help explain the program, including frequently asked questions and an outline of their points system. This content will be expanded in the coming weeks to include additional details regarding Energy Efficiency.
Learn more about MLI Select.
How MCAP can help
David Boyle, Vice President, Commercial Origination, shares that “CMHC designed this new program such that refinances and acquisitions of existing units will also have the ability to qualify for financing under MLI Select. From the time of CMHC’s initial announcement, MCAP has been busy speaking with our clients, answering their questions, and furthering their understanding of the program. Interest remains very high across new construction, purchases, and refinances. Our assessment of these opportunities show that they align with the MLI Select criteria and as such we expect volumes to be much greater than that of CMHC’s outgoing MLI Flex program.”
Our Commercial Origination Team is looking forward to helping our clients take advantage of this new program from answering any questions that can help you apply to receiving the insurance and financing benefits.
Connect with a CMHC Expert Today
If you are interested in learning more about this program and understanding how your existing or new project might qualify, reach out to any one of our team of CMHC experts today.
Contact a Commercial Origination team member.