CMHC Commercial & MLI Select
Affordable Housing Initiatives: Low-down-payment programs to buy, convert or build apartments.
Lower CMHC’s premiums for Networth qualified borrowers investing in housing.
Mortgage Approvals with amortization of up to 50 years with up to 90% LTV Mortgages
Experienced Team: Proper structuring and appropriate lender choice for CMHC MLI applications
CMHC Commercial & MLI Select: Your Guide to Commercial Property Financing
Navigating commercial property financing in Canada can be complex, but the Canada Mortgage and Housing Corporation (CMHC) offers powerful solutions through its Commercial Mortgage and MLI Select programs. These initiatives support investors and developers in financing multi-unit residential and mixed-use properties, promoting affordability, sustainability, and accessibility. Whether you're expanding your rental portfolio or developing an apartment building, understanding the requirements—like minimum down payments, net worth criteria, and Debt Coverage Ratios (DCR)—is crucial. In this guide, we break down how CMHC's programs work and how RateShop Mortgage brokers can help you secure the best financing terms for your commercial property projects.
Minimum Down Payment
For CMHC-insured commercial mortgages, the minimum down payment depends on the type and size of the property. Typically, commercial properties require a down payment of at least 15% to 20%. Under the MLI Select program, larger multi-unit residential buildings may qualify with as low as 15% down, depending on risk factors and overall financial strength.
Types of Properties
CMHC covers a broad range of commercial and residential property types, including:
Multi-unit residential buildings (5+ units)
Mixed-use properties (residential and commercial combined)
Retirement homes
Student housing
Affordable housing projects
Purpose-built rental apartments
Properties must be in good condition and meet specific CMHC standards.
Use of Properties
Eligible properties must be primarily residential in nature, with at least 70% of the floor area dedicated to residential units. Mixed-use buildings with commercial units are acceptable, but residential use must dominate. For commercial spaces, CMHC ensures that tenants align with community and economic goals
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Low-Income Minimum Units Required
For low-income housing under CMHC's MLI Select, properties typically need to dedicate a portion of units to affordable housing. A minimum of 10-20% of the units should cater to tenants with lower income, depending on the region and CMHC’s affordability criter
Amortization
The standard amortization period for CMHC commercial mortgages is up to 40 years. This extended period helps lower monthly payments, making financing more accessible for investors and developers, particularly for affordable and multi-unit projects.
MLI Select for Apartment Buildings
MLI Select is CMHC's innovative program for financing multi-unit residential buildings, designed to promote affordability, accessibility, and environmental efficiency. It offers higher Loan-to-Value (LTV) ratios, lower interest rates, and longer amortizations for qualifying projects. The program provides a flexible points-based system where applicants can earn incentives based on their commitment to social and environmental goals.
DCR Qualification for MLI Select
Debt Coverage Ratio (DCR) is a key qualification metric in CMHC’s MLI Select. The standard DCR requirement ranges from 1.10 to 1.30, depending on the project’s risk profile and the lender’s criteria. A lower DCR may be acceptable if the project demonstrates strong affordability or environmental performance under MLI Select.
Proof of Net Worth Requirements
Borrowers must demonstrate sufficient net worth to cover potential risks. Typically, CMHC requires a net worth equal to at least 25% of the loan amount, with a minimum liquid asset requirement to ensure borrowers have sufficient funds for unexpected expenses. Documentation includes financial statements, proof of assets, and liabilities.
How RateShop Helps to Qualify for CMHC MLI Select
RateShop Mortgage brokers specialize in navigating CMHC’s complex commercial lending requirements. Here’s how they help:
Expert Guidance: Provide detailed assessments to match your project with the right MLI Select incentives.
Financial Preparation: Assist in preparing accurate net worth documentation and strengthening DCR.
Lender Connections: Connect you with top CMHC-approved lenders for competitive rates.
Customized Solutions: Offer tailored strategies to meet affordability and sustainability criteria, ensuring maximum MLI Select points.
Unlock Commercial Financing Potential with CMHC & MLI Select
CMHC Commercial and MLI Select programs offer unique opportunities for investors and developers. With the right strategy and support from RateShop’s expert brokers, you can secure optimal financing and maximize your project's potential.
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RateShop Inc. is a Mortgage Brokerage offering lowest mortgage rates to Canadians. We are provincially licensed in the following provinces: Mortgage Brokerage Ontario FSRA #12733, British Columbia BCFSA #MB600776, Alberta RECA #00523056P, Saskatchewan FCAA #00511126, PEI #160622, New Brunswick FCNB #88426, Newfoundland/Labrador. Our Quebec Mortgage Transactions are serviced by Orbis Mortgage Group AMF# 181136.
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