CMHC MLI SELECT- PROGRAM CHANGES AND UPDATES
Understanding the CMHC MLI Select Program
The Canada Mortgage and Housing Corporation (CMHC) launched the MLI Select program on March 7, 2022, to tackle Canada’s urgent housing needs. Designed to replace the older MLI Flex program, MLI Select encourages developers and property owners to build, preserve, and upgrade affordable, sustainable, and accessible rental housing.
The program addresses two critical issues: Canada’s growing demand for affordable homes and its aging rental housing stock. It balances financial viability with social responsibility by rewarding projects that prioritize:
Affordability (e.g., below-market rents),
Energy efficiency (e.g., green building upgrades),
Accessibility (e.g., wheelchair-friendly designs).
Using a unique scoring system, MLI Select evaluates projects based on these three pillars. Higher scores go to developments that integrate features like renewable energy systems, universal design principles, or rent caps for low-income households. This approach aims to create a more inclusive, environmentally friendly rental market while ensuring projects remain financially feasible.
In return, investors are able to qualify for a 5% deposit and 50 year mortgage if all 100 points are met.
However, this is a government program, and the program has undergone many changes since it was first introduced. It is essential that investors are aware of the risks of the program and stay up to date with the latest news releases. Click below for all the updates and to stay informed about the CMHC MLI Select Program.
Increasing the CMHC Premiums
On July 14th, CMHC significantly increased insurance premiums under the MLI Select program, with rates rising from 2.8% to as low as 5.35% depending on a project’s risk profile.
This shift marks a move to risk-based pricing, where higher leverage, longer amortizations, and unstabilized projects face steeper premiums. While this change may erode returns on many developments, MLI Select still offers up to 30% in premium discounts for projects that deliver strong affordability, accessibility, and energy efficiency outcomes—making it more important than ever for developers to structure their deals strategically to maximize program benefits.
Removal of Multi Titled Properties From the Program
After a highly anticipated announcement, the CMHC finally made a decision on the whether or not single family homes would be able to qualify for the MLI Select Program.
The ruling was made to remove “bundled products” from being eligible. This means anything on more than one plot of land. For a full breakdown of the new ruling and some potential outcomes from this decision, click the link below.
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