Quick answer: MLI Select is CMHC mortgage loan insurance for rental buildings with 5 or more units. You earn points by committing to affordable rents, energy savings or accessibility, and you need at least 50 points. In return, CMHC allows up to 95% loan to value or loan to cost, amortization of up to 50 years, a minimum debt coverage ratio of 1.10 for standard rentals, and premium discounts of 10% to 30%. The price is a rent commitment that lasts at least 10 years.
Most BC investors who ask me about MLI Select have heard "95% financing and 50 years" and little else. Both are real, but each comes with a condition. Here is how it works, using CMHC's own figures.
What is MLI Select?
MLI Select is a CMHC multi unit insurance product that replaced MLI Flex on March 7, 2022. A CMHC approved lender applies and pays the fee and premium, which can be added to the loan. It covers rental buildings, single room occupancy, supportive housing and retirement homes, for a purchase, a refinance or new construction.
Who is MLI Select for?
Builders of purpose built rentals who want to keep less cash in the project, and investors buying or refinancing 5 or more units who accept some rents below market. CMHC wants five years of experience managing similar buildings or a professional manager, and a net worth of at least 25% of the loan, minimum $100,000.
How does the MLI Select points system work?
Earn points in one area or combine them. Affordable units rent at or below 30% of the market's median renter income.
| Outcome | Existing building | New construction |
|---|---|---|
| Affordability, 50 points | 40% of units | 10% of units |
| Affordability, 70 points | 60% of units | 15% of units |
| Affordability, 100 points | 80% of units | 25% of units |
| Energy efficiency, 20 / 35 / 50 points | 15% / 25% / 40% less energy than today | 25% / 50% / 60% better than NECB Tier 1, or 20% / 40% / 70% better than NBC Tier 1 |
| Accessibility, 20 points | 15% of units accessible under CSA B651:23, or 15% universal design, or a Rick Hansen Foundation score of 60% to 79% | |
| Accessibility, 30 points | Higher levels, such as 100% universal design or Rick Hansen Gold | |
| Affordability for 20 years or more | Extra 30 points | |
Accessibility points also require every unit to be visitable under CSA B651:23.
What does each points tier unlock?
| Points | Existing building, max loan to value | New construction, max loan to cost | Max amortization | Recourse | Premium discount |
|---|---|---|---|---|---|
| 50 | 85% | 95% | 40 years | Full | 10% |
| 70 | 95% | 95% | 45 years | Full | 20% |
| 100 | 95% | 95% | 50 years | Limited | 30% |
At every tier the minimum debt coverage ratio is 1.10 for standard rental housing, 1.20 for other shelter models and 1.40 for non residential space. Amortization cannot exceed the building's remaining economic life.
What are the trade offs?
- Rent commitments: at least 10 years, with an annual certificate of compliance. Increases on the affordable units cannot exceed what BC tenancy law permits; where no legal limit applies, CMHC uses CPI, 1.8% for BC in 2027.
- Energy and accessibility proof: professional attestations, due within 60 days of the last advance if the loan pays for the work, or 24 months if you pay yourself.
- Premiums and fees: a large one time premium, plus 0.25% for each five years of amortization beyond 25, and an application fee of $150 per unit for the first 100 units.
- Guarantees: usually 40% of the loan on an existing building, and 100% on new construction until rents are stable for 12 months.
- Time: an appraisal, often an energy model, and CMHC underwriting on top of the lender's.
How does MLI Select compare with a conventional commercial mortgage?
A conventional lender sets its own loan to value, amortization and debt coverage rules, with no CMHC premium and no rent commitments. You usually need more equity but keep full control of rents. My guide on commercial versus residential rates explains pricing, and my commercial mortgage in BC page covers conventional options.
What does MLI Select look like on a Surrey building?
This example is for illustration only; your approval and costs depend on the full application. A 20 unit existing rental building in Surrey has a lending value of $8,000,000 and net operating income of $440,000 a year. CMHC's median renter income table lists Surrey at $51,000, so an affordable rent is at most $15,300 a year, or $1,275 a month.
| Item | 50 points | 70 points | 100 points | Conventional (assumed 65%) |
|---|---|---|---|---|
| How you get there | 8 affordable units | 12 affordable units | 8 affordable units for 20 years, plus 3 accessible units | No commitments |
| Maximum loan | $6,800,000 | $7,600,000 | $7,600,000 | $5,200,000 |
| Amortization | 40 years | 45 years | 50 years | Set by the lender |
| Premium rate after discount | 4.59% | 5.72% | 5.18% | None |
| Premium | $312,120 | $434,720 | $393,680 | None |
Each premium rate is CMHC's standard rental premium for a non construction loan (4.35% up to 85% loan to value, 6.15% above 90%), plus the amortization surcharge (0.75% for 40 years, 1.00% for 45, 1.25% for 50), less the tier discount: 6.15% plus 1.25% is 7.40%, and 30% off leaves 5.18%. The application fee is 20 times $150, or $3,000.
The debt coverage ratio also caps the loan. At 1.10, yearly payments can be at most $440,000 divided by 1.10, or $400,000. Whether the full $7,600,000 fits depends on the rate; longer amortization helps. Note that 100 points costs less than 70 here, because the bigger discount outweighs the extra surcharge. My Surrey commercial mortgage page covers local lenders.
Can MLI Select finance a new build in BC?
Yes. The loan can be advanced up to 95% of costs during the build, a rental achievement holdback may apply, and 10% affordable units earns 50 points. See my construction financing page for how draws work.
What are the key takeaways?
- MLI Select insures rental buildings of 5 or more units; you need at least 50 points.
- More points mean up to 95% financing, up to 50 years of amortization, bigger premium discounts and, at 100 points, limited recourse.
- Affordable rents last at least 10 years, and the premium is large.
- Price every tier and a conventional loan; a higher tier can cost less.
Own or planning a rental building in BC? Book an appointment and I will run your building through each MLI Select tier and a conventional option, with every cost in writing. See how I work as a commercial mortgage broker.
What other questions do readers ask?
How many units do you need for MLI Select?
At least 5 units for standard rental housing. Retirement homes need at least 50 units or beds. Non residential space, such as ground floor retail, cannot exceed 30% of the gross floor area or 30% of the total lending value.
What is the minimum score for MLI Select?
You need at least 50 points from affordability, energy efficiency and accessibility. Higher tiers start at 70 and 100 points and unlock longer amortization, higher loan to value on existing buildings, bigger premium discounts and, at 100 points, limited recourse.
How long do the affordable rents last under MLI Select?
At least 10 years. A commitment of 20 years or more earns an extra 30 points. During the commitment, rent increases on the affordable units cannot exceed the legal limit, and you file an annual certificate of compliance.
Can I use MLI Select to refinance a building I already own?
Yes. MLI Select covers purchases and refinances of existing rental buildings as well as new construction. On an existing building, 50 points allows up to 85% loan to value and 70 points or more allows up to 95%.
Do I apply to CMHC directly?
No. A CMHC approved lender applies for the insurance and pays the application fee and premium, which can usually be added to the loan. A broker can line up the lender and package the file.
Where do these numbers come from?
- CMHC: MLI Select (published September 21, 2026)
- CMHC: MLI Select fact sheet (PDF)
- CMHC: Multi unit fees and premiums at a glance (PDF)
- CMHC: Median renter income by market (XLSX)
Published November 10, 2026. This article is general information, not personal financial advice. Rates and programs change, and every approval depends on your full application. Asim Ali is a licensed mortgage broker with Dominion Lending Centres A.I.M.I. Collective Mortgage Group.