What CMHC’s MLI Select Means for Affordable Housing Developers in Calgary

Precedent Developments
Aug 26
4 min read

Updated: Aug 27

MLI Select is CMHC’s incentive-based insurance program for multi-unit rentals. Hit point thresholds across Affordability, Energy Efficiency, and Accessibility and you unlock better leverage (up to 95% LTC/LTV), longer amortizations (up to 50 years), and flexible DCR—powerful tools for Calgary developers bringing dignified, attainable housing to market.

What is MLI Select (in plain language)?

MLI Select is mortgage loan insurance for multi-unit rental projects that rewards impact. The more you commit to affordability, energy performance, and accessibility, the stronger your financing terms. It applies to new construction and existing properties, with a simple premise: earn points → unlock flexibilities.

How the Points Work (New Construction & Existing)

You qualify by scoring at least 50 points from any combination of three pillars:

Affordability (Rent Levels)
New builds: 50/70/100 points are earned when 10% / 15% / 25% of units are capped at 30% of median renter income for your market.
Existing assets: 50/70/100 points require 40% / 60% / 80% of units at that same affordability threshold. A 10-year commitment is required; 20+ years adds 30 bonus points.
Energy Efficiency
For new builds, earn 20 / 35 / 50 points at 20% / 25% / 40% better than NECB/NBC. Existing buildings earn points based on 15% / 25% / 40% reductions versus current performance.
Accessibility + Universal Design
Points are awarded when a portion of units meet CSA B651:23 accessibility or universal design benchmarks (or achieve Rick Hansen Foundation Accessibility Certification). All units must be 100% visitable, and common areas barrier-free to participate.

Where do “affordable” rents come from? CMHC bases them on your market’s median renter income dataset; rent growth is typically limited by regulation or, if none, by the CPI (rented accommodation) index.

The Financing Upside You Can Unlock

Hit higher point tiers, and CMHC offers progressively better terms:

New Construction
• Up to 95% Loan-to-Cost
• Amortization up to 40 / 45 / 50 years at 50 / 70 / 100 points, respectively
• Minimum DCR 1.10 for standard rentals
• Potential for limited recourse at 100 points
These are materially more flexible than conventional terms and can make Calgary projects pencil even with rising hard costs.
Existing Properties
• Up to 95% LTV at higher tiers (85% at entry tier)
• Amortization up to 50 years at 100 points
• DCR minimums as low as 1.10 for standard rentals
Great for repositioning or preservation plays where deep affordability and upgrades are planned.

Eligibility Basics (So You Don’t Spin Your Wheels)

Project Size: Minimum 5 units (retirement homes: 50+).
Non-Residential Cap: Max 30% of GFA and 30% of lending value.
Use Types: Standard rental, SRO, supportive housing, retirement homes; student housing qualifies under energy/accessibility only.

Modern white and brown apartment building with balconies. Cars parked on street. Rooftop with white umbrella. Clear sky, calm urban setting.

Calgary Developer Playbook: How to Maximize Your Score (and Returns)

1) Lead with Affordability—Model the Mix Early

Use a test fit and pro forma to decide where you’ll place the 10–25% affordable units (new builds) or 40–80% (existing). Align with the median renter income for Calgary to set achievable rent caps. Lock a 10-year commitment (or 20 years to capture an extra 30 points).

2) Design for Envelope Performance (Cheapest Energy Is the Energy You Don’t Use)

Target 20–40% above code with smart moves—continuous insulation, high-performance glazing, airtightness, heat pumps/HRVs—and back it with a qualified energy model and accepted software.

3) Bake in Accessibility from Concept

Plan for visitability in all units, barrier-free common areas, and an accessible/universal design unit count that clears your chosen tier—or pursue RHFAC recognition. Early coordination with an architect/accessibility consultant keeps costs predictable.

4) Choose the Right Tier for Capital Strategy

If you need max leverage and lowest annual debt service, structure the project to hit 100 points for 50-year amortization and potential limited recourse. If your business plan values speed, 50–70 points can still materially improve DSCR and equity efficiency.

What This Means in Calgary (Right Now)

Calgary’s pipeline is leaning into purpose-built rentals and gentle density. MLI Select lets you trade design discipline for capital efficiency: deliver dignified, energy-smart, accessible housing and receive terms that help projects cross the finish line—even as construction costs and rates fluctuate. For sites near transit and services, the program can be the difference between good idea and groundbreaking.

Documentation & Timing (Don’t Leave Points on the Table)

At Application: Submit affordability attestation (commitment & methodology), energy modelling by a qualified professional, and accessibility attestation.
After Final Advance: Provide confirmation that energy/accessibility outcomes were achieved within the program’s timelines; affordability is monitored through the commitment period.

Quick Checklist to Get Started

Site test fit + pro forma with target point tier
Affordability plan (unit count, rent caps, 10 vs 20-year commitment)
Energy strategy + modelling path identified
Accessibility concept (visitability for all units + targeted accessible/universal units)
Financing model aligned to 95% LTC/LTV and 40–50 year amortization scenarios
Documentation roadmap with roles (architect, engineer, accessibility consultant, etc.)

How Precedent Developments Helps You Win with MLI Select

Design-Led, Budget-Informed: We balance points vs. capex to hit the optimal tier for your capital stack.
Integrated Delivery: Planning, energy modelling coordination, accessibility design, approvals, tendering, and construction management—under one roof.
Investor-Ready Packages: Transparent pro-forma's, sensitivity analysis, and CMHC-aligned documentation from day one.