Ralhan Capital

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MLI Select

CMHC’s multi-unit mortgage loan insurance product is a points-based program offering incentives based on your level of commitment to affordability, energy efficiency, and/or accessibility outcomes where 100 points leads to maximum benefits.

MLI Select requires a minimum of 5 units for new and existing projects.

If you’re planning to build new rental units, CMHC’s Rental Construction Financing program offers low-cost, insured loans to support the construction phase. This program helps developers access long-term financing at competitive interest rates and supports the creation of affordable rental housing.

Some key benefits and what it means for the Borrower include:

  • Higher Leverage:

    Lower money down offering up to 95% of value or purchase for new or existing properties and up to 95% LTC for construction, subject to debt service coverage ratios of 1.10X. This means developers can secure a significant portion of the project's funding, reducing the amount of equity they need to contribute.

  • Longer Amortization Periods:

    Compared to conventional refinancing options, extending the repayment term can lead to lower monthly payments, offering greater cash flow flexibility for property owners (up to 50 years amortization with 100 points based on the program).

  • Attractive Interest Rates:

    Generally, interest rates are 1% better than conventional loans. This reduced cost of borrowing helps to improve the project's overall profitability and cash flow.

  • Reduced Premiums:

    Paying less than the standard rental program, while the loan premium is added to your loan.

  • Property-Specific Recourse:

    Property specific recourse after 12 months in some instances, meaning that the borrower's personal assets are not at risk in the event of a loan default. This provides added financial protection and peace of mind to the borrower.

  • Flexibility:

    Tailored solutions based on point distribution that affect premium, LTV, DSC, amortization, rental achievement, and recourse/limited recourse, making it more manageable for developers to handle initial costs.