CMHC MLI SELECT
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What is the CMHC MLI Select Program?
Imagine being able to purchase a multi-unit investment property with just 5% down—then stretch your payments over an unprecedented 50 years.
Sounds like a real estate dream, right?
But here’s the catch: it’s real, and it’s called the CMHC MLI Select Program. The opportunity is extraordinary, yet not every investor can take advantage of it.
Why? Because CMHC isn’t handing out these deals to just anyone.
There are strict criteria to meet, both for you as an investor and the property itself. If you’re ready to unlock the most powerful financing tool available in today’s market, keep reading…
The Core Advantage:
5% Down, 50-Year Mortgage
Let’s not waste time: the CMHC MLI Select Program is the most powerful tool for real estate investors right now. It dangles the promise of acquiring investment properties with a ridiculously low 5% down payment, amortized over 50 years.
Sound too good to be true? That’s because it is – if you’re not prepared. This isn’t some cookie-cutter mortgage that anyone can stroll into. This is a program with rules, demands and yes, immense rewards for those who meet the criteria.
CMHC evaluates both the Investor and the property being purchased to determine eligibility, so it’s crucial to understand what’s involved.
How to Qualify for the MLI Select Program in Calgary
To qualify for the MLI Select Program, investors must meet several key financial criteria.
Here are the three key considerations when determining if you are eligible for the MLI Select Program.
1. Are You Qualified
Your Net Worth must be at least 25% of the property’s purchase price (i.e. For a $2 million property, your net worth must be at least $500,000).
2. Is Your Property Qualified
You must have liquid capital amounting to at least 10% of the purchase price (i.e. For a $2 million property, you need at least $200,000 in liquid assets).
3. Additional Qualifications
CMHC favours investors who live within a commutable distance from their investments. Out-of-province inventors can partner with someone locally to meet this requirement.
Do you qualify for the CMHC MLI Select Program? Click the button below to
find out or continue reading for more details on the program!
Are YOU Qualified for the MLI Select Program?
First, are YOU qualified for the CMHC MLI Select program. To qualify for the MLI Select Program, investors must meet several key financial criteria.
1. Net Worth Requirement
Your Net Worth must be at least 25% of the property’s purchase price (i.e. For a $2 million property, your net worth must be at least $500,000)
2. Liquidity Requirement
You must have liquid capital amounting to at least 10% of the purchase price (i.e. For a $2 million property, you need at least $200,000 in liquid assets)
3. Proximity To Property
CMHC favours investors who live within a commutable distance from their investments. Out-of-province inventors can partner with someone locally to meet this requirement.
Is Your PROPERTY Qualified for the MLI Select Program?
When evaluating the property itself, CMHC uses a scoring system based on three factors: accessibility, environmental impact, and affordability. Your property’s score directly impacts how much you’ll need to put down and the length of the mortgage term.
Maximizing Your Score: Affordability Is Key
The easiest & simplest way to get a high score is to go for the affordability factor and simply price your rent a certain way. Our MLI Specialist will work with you and tell you exactly how to price your rent to get the best score possible as the rent varies depending on the neighbourhood and type of property you are purchasing.
Minimum Property Size: At Least 5 Units
To qualify for the MLI Select Program, the property must contain at least five rental units. This can be achieved by purchasing a multi-family unit or multiple properties located next to each other (e.g., three detached homes, each with legal suites).
The Hidden Rules: What They Don't Tell You
Even when you meet the requirements, there are other critical factors that could make or break your investment.
Let’s cover them:
1. New Builds Get Preferential Treatment
While the program covers both new builds and resell properties, new builds offer better terms. Developers love this program, and so should you.
2. Timing is EVERYTHING
CMHC takes three months to process your application. And here’s the kicker: once approved, you’ve got a six-month window to take possession of the property, or you’re back to square one. Timing your approval with possession is the tightrope you’ll need to walk. Our team & MLI Specialist work hand-in-hand with the builder and will help you sync the two perfectly, so you don’t miss out.
3. No Guarantees: Risk vs. Reward
Here’s the reality – no builder will give you a 3-month conditional period while you wait for approval (but most are very flexible). We can’t make guarantees you will get approved for the program, but our team will do every test possible prior to writing an offer to ensure you have the best chance possible of getting approved.
4. Builders Won't Finance Your Investment
In the current Alberta Real Estate market builders are having little trouble selling their inventory. We have yet to find a builder who will accept 5% down outright for an MLI project in the current environment (as you’re essentially asking the builder to fund your investment which makes no sense for them). However, many will accept 10% down and refund 5% on possession.
5. The "What If I Don't Get Approved" Scenario
Let’s talk worst-case scenario. You apply, and CMHC turns you down. What now? Your investment falls back into the realm of traditional real estate. You’ll need to cough up 20% down at possession. Don’t have it? You lose everything you’ve put into the deal so far. That’s the gamble—but with the right preparation, we’ll ensure your odds are as high as possible.
6. Pro Forma Financial Analysis: The Make-or-Break Factor
To qualify, your Debt Service Coverage Ratio (DSCR) must hit 1.1 or higher. The good news? Our MLI Specialist prepares a thorough Pro Forma Financial Analysis for CMHC, factoring in every cost, benchmark, and projection to give you the best shot at success.
7. Expect To Pay For Expertise
Unlike traditional mortgages, the MLI Select Program comes with fees. You’ll pay your mortgage broker, you’ll pay application fees, and you’ll pay for appraisals. Some brokers will try to charge you up to $45,000 for their services—don’t fall for it. Our team charges a fraction of that and delivers even more value.
Top MLI SELECT Options in Calgary
Calgary pre construction projects allowing MLI Select buyers...
Semi Detached in West Calgary
Starting at $640K (Including GST)
Monthly Cashflow Projection:
+$739/Month
Semi Detached - South Calgary
Starting at $690K
Monthly Cashflow Projection:
+$320/Month
Questions About The MLI Select Program?
Contact Us Today!
More Than Just Real Estate Agents
At New Homes Alberta, we pride ourselves on being more than just a real estate team; we are your neighbors, your community members, and your best guide to the Alberta real estate market. Born and raised right here in Alberta, our team embodies a deep-rooted understanding of the local landscape, offering insights and expertise that can only come from true locals.
The majority of New Build and Pre Construction real estate teams are based out of province, with Toronto being a prominent location for most of these agents. However, in order to invest in the right preconstruction project to maximize return and enjoyment, it is essential to work with a team of agents who not only are in the location in which you plan on investing in, but also knows the area market inside and out.
Your One Stop Shop to The MLI Select Program
PROJECTS - EARLY ACCESS
We know a property with potential when we see one. Get our insights on the property features, possible updates, and surrounding area that translate to more value.
LOCAL EXPERTS
Get a better picture of the value of your investment. Leverage our knowledge of the local Calgary market – like demographics, building and zoning regulations, nearby developments, etc.
INVESTMENT ANALYSIS
We run the numbers on rent, repairs, maintenance, vacancy, proformas, and more. Be better prepared and feel more confident in your investment’s performance. With out in-house former CPA member, we give conservative and accurate financial projections.
MORTGAGE EXPERTS
The MLI Select program is very technical and requires a certain mortgage expert to increase the security for your investment. We will match you with a mortgage broker specializing in the CMHC MLI Select program.
BUILDER RELATIONSHIPS
Our team will save you countless hours worth or searching for projects. We have relationships with builders and know which projects are coming and have MLI Select availability.
COMPLETE SERVICE
Everything that you need to succeed, we can provide for you. We are the one stop shop for your investment strategy.
Edmonton
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