The Canada Mortgage and Housing Corporation (CMHC) MLI Select Program is a transformative initiative that has significantly altered financing for multi-unit residential properties in Ontario, as well as across Canada. Created to encourage affordable, accessible, and energy‐efficient housing, the program provides investors and developers with enhanced loan terms that include high loan-to-value (LTV) ratios, extended amortization periods, and reduced mortgage insurance premiums.

For Ontario real estate investors, whether entering the rental market or expanding an existing portfolio, the program offers an unprecedented opportunity to optimize cash flow and reduce upfront capital requirements, according to Paul D’Abruzzo, a real estate coach with Expert Investor Academy. He adds, “One of the main benefits of MLI Select is its accessibility to smaller investors; properties with as few as five units qualify, which opens multi-family opportunities up to more investors. Even those who never thought multi-family investing was within reach can now seize the opportunity. This option enables many individuals to explore, start, or diversify their portfolios while enjoying the benefits of multi-family investments.”

Background of the CMHC MLI Select Program

Launched to replace previous financing solutions such as the retired MLI Flex program, the MLI Select Program targets properties with a minimum of five units, with specific thresholds for retirement homes and other special categories. Its primary aim is to address Canada’s ongoing housing affordability challenge while advancing social and environmental objectives. By awarding points based on commitments to affordability, energy efficiency, and accessibility, the program incentivizes developments that align with key societal goals as well as a robust rental market.

This dual focus on financial innovation and social responsibility means that properties that meet or exceed the set benchmarks can secure advantageous financing terms. Additionally, even smaller-scale, multi-family properties can secure this beneficial financing, making it a key program for beginner and intermediate investors to investigate – not just large-scale investors.

Paul D’Abruzzo emphasizes the significant impact favourable financing can have on a project’s profitability. He explains, “Investors with eligible projects can access up to 95% loan-to-value financing, meaning a down payment as low as 5% may be enough for a loan. This accessibility can be a game-changer for many investors looking to enter the multifamily market. Additionally, borrowers benefit from amortization periods of up to 50 years, which significantly reduce monthly mortgage payments and enhance long-term cash flow stability.”

Points-Based Incentives

At the heart of the MLI Select Program is a points system that assesses a project’s commitment in three critical areas.

Affordability

Projects earn points by offering a designated percentage of units at rents that do not exceed 30% of the median renter income. This ensures that a segment of the housing stock remains affordable for lower-income households.

Energy Efficiency

Developers are rewarded for exceeding baseline energy performance standards, often measured against benchmarks such as the National Energy Code for Buildings (NECB) or other recognized standards.

Accessibility

Points are also awarded for incorporating universal design elements or meeting accessibility certifications, such as those set out by the Canadian Standards Association (CSA).

Benefits

Every extra point earned under these criteria leads to enhanced financing terms, such as reduced insurance premiums and the option for longer amortization periods. As Paul D’Abruzzo notes, “In effect, emphasizing strong social and environmental performance can now improve a project’s economic viability. Additionally, for investors with limited starting capital, these extra incentives can be the key to making a break into multi-family property investing.”

High LTV Ratios

With financing available at up to 95% LTV, investors can leverage minimal equity, preserving capital for other investments or operational needs.

Extended Amortization

The availability of up to 50-year amortization periods lowers monthly debt service, enhancing cash flow—a key metric for investors.

Reduced Insurance Premiums

By achieving high scores on the points system, borrowers benefit from significantly lower mortgage insurance premiums. This reduction translates into substantial savings over the life of the loan.

Flexible Qualification

The program accommodates both new construction and the substantial renovation of existing properties, offering flexibility for a range of project types—from standard rental buildings to supportive or retirement housing.

These features not only mitigate upfront risks but also contribute to a stable long-term investment environment.

Opened Doors for Smaller Investors

Opportunities for smaller real estate investors are expanded, as the program offers accessible financing for multi-family properties with as few as five units. Designed to lower entry barriers, the program’s minimal equity requirements make it a rare opportunity for beginner and intermediate investors to enter the multi-family market while securing strong cash flow and high returns. Through reduced upfront capital demands, investors can scale their portfolios more easily.

Eligibility Criteria for Ontario Projects

To qualify for the MLI Select Program, a property must meet several critical thresholds.

Generally, a property must contain at least five residential units. For certain categories, such as retirement homes, the minimum is higher. If a building includes non-residential spaces, these must not exceed 30% of the gross floor area or total lending value.

For affordability criteria, a predetermined percentage of a project’s rental units must be designated as affordable. Typically, this means that between 10% and 25% of the units must be set at rental rates at a maximum of 30% of the local median renter income—a benchmark that ensures the housing remains affordable for lower-income households. Additionally, a project must commit to maintaining these affordable rates for a minimum of ten years. For developers who agree to extend this commitment to 20 years or more, the program rewards them with additional points.

To qualify under the energy efficiency requirements, projects must show measurable improvements over baseline standards by reducing energy consumption or GHG emissions by 15 to 40% compared to a reference building. Verification is through energy simulation reports from qualified professionals or third-party certifications, which help secure better financing by lowering long-term costs.

Accessibility criteria require all units to be 100% visitable, and at least 15% must meet established accessibility standards, whether via CSA standards, universal design principles, or recognized certifications. These measures ensure an inclusive environment and enhance the project’s overall economic viability.

Meeting these criteria not only qualifies a project for the program but, under the points system, earning additional points leads to even more attractive financing terms.

How MLI Select is Helping Investors in Ontario

Through favourable lending terms for qualified projects, MLI Select offers significant advantages for investors and developers.

Enhanced Cash Flow and Lower Upfront Costs

For investors in Ontario, cash flow is a critical metric that determines long-term profitability and the ability to scale a portfolio. By reducing down payment requirements to as little as 5% and offering extended amortization periods, the MLI Select Program drastically lowers monthly mortgage obligations. D’Abruzzo comments, “The improved cash flow enabled by the MLI Select program allows investors to reinvest saved capital into additional projects or to weather market fluctuations more effectively.

Accelerated Portfolio Growth

Lower equity requirements and competitive interest rates mean that investors can finance multiple properties concurrently. The high LTV ratios make it feasible to acquire larger properties or diversify across different locations within Ontario. This accelerated growth strategy is particularly beneficial in a market where rental demand remains high, and property values continue to appreciate.

Risk Mitigation and Long-Term Stability

The program’s emphasis on maintaining a minimum debt coverage ratio (DCR) of 1.1 or higher ensures that only projects with robust income streams qualify. By linking financing to projects that are projected to generate net incomes exceeding debt costs, CMHC reduces default risk and provides investors with a greater degree of financial stability. Moreover, the inclusion of criteria focused on sustainability and accessibility not only meets regulatory trends but also aligns with evolving consumer preferences, further reducing market risk.

Empowering Socially Conscious Investors to Succeed

Investors may avoid affordable housing projects due to narrow profit margins. Furthermore, the extra expenses for energy-efficient or accessible features, while desirable, can render a project unfeasible or unprofitable. The MLI Select program aims to overcome these hurdles, enabling investors and developers to offer socially responsible housing without sacrificing profitability. By tying attractive financing options to tangible social outcomes, the program not only reduces risk but also paves the way for long-term success in a competitive market.

Capitalizing on a Booming Market

D’Abruzzo notes, “In Ontario, housing demand persistently outstrips supply; it is clear that the demand is there. By leveraging the MLI Select lending incentives that boost profit margins, investors can tap into this strong demand to secure consistent, reliable income, while still achieving a level of profitability that makes their investment worthwhile.”

Scenario

Consider an investor acquiring a six-unit rental building in Toronto. Under traditional financing, the investor would likely be required to provide a minimum of a 25% down payment, substantially limiting their liquidity. However, through the MLI Select Program and earning a high score through commitments to affordability, energy efficiency, and accessibility, the investor secures 95% financing with a 50-year amortization period. With monthly payments significantly reduced, the investor’s cash flow improves dramatically. This freed-up capital can be reinvested into further developments, thereby accelerating portfolio growth while also addressing pressing housing needs.

Looking Forward

As Ontario’s real estate market evolves, those who understand and capitalize on the opportunities presented by the CMHC MLI Select Program will be best positioned to succeed. Whether you are a seasoned investor or new to multi-unit developments, the program’s strategic advantages make it a true game changer in today’s dynamic market.

However, to fully leverage the benefits of the MLI Select program, it helps to have an experienced real estate professional and coach on your side.

Paul D’Abruzzo is a real estate investor, developer, coach, and realtor who left a decade-long career as a Toronto firefighter to focus on real estate full-time in 2020. Since then, he has built a portfolio exceeding $45 million in multi-family, student, and short-term rental properties across Ontario. His disciplined background and direct market experience have shaped a pragmatic, investor-focused approach that he now shares through coaching and personal guidance.

For investors exploring CMHC’s MLI Select program, Paul offers clear, data-driven insights into navigating its point-based criteria. Drawing on his experience with the program, he provides practical insights that help investors navigate its requirements and benefits, enabling them to craft strategies that enhance project viability and profitability. His straightforward approach helps both new and experienced investors make informed decisions in today’s competitive market.

D’Abruzzo has also compiled his insights in a new free guide, the 2025 Canadian Real Estate Investor Playbook: The Secrets to Thriving in ANY Market. It outlines current market trends, effective strategies for maintaining cash flow in challenging conditions, and predictions for 2025. The guide also provides a clear, practical roadmap for investors at all levels on navigating fluctuating interest rates and evolving market dynamics. The playbook is designed to offer actionable advice that can help readers adapt to today’s market and plan for future success.