CMHC Multi Unit Financing for Canadian Real Estate Investors

CMHC insured mortgages offer the most attractive financing terms for multi unit residential properties in Canada. Access up to 95% loan to value, amortization extending to 50 years through MLI Select, and interest rates significantly lower than conventional commercial loans. At Inspired Management Consulting, we help real estate investors navigate CMHC requirements, optimize MLI Select points, and secure financing across Canada.

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Smarter Leverage

Government Backed Financing That Maximizes Cash Flow

Conventional commercial mortgages require 25 to 35 percent down payment with 20 to 25 year amortization. CMHC insurance reduces lender risk which translates to better terms for borrowers. You put less money down, stretch payments over a longer period, and keep more cash in your pocket every month.

CMHC insured loans offer interest rates 1 to 1.5 percent lower than standard commercial financing. With 50 year amortization available through MLI Select, your monthly debt service drops significantly compared to a 25 year term. Lower payments mean stronger DSCR, better cash flow, and more capital available for your next acquisition.

CMHC insured mortgage rates

Why CMHC Beats Standard Commercial Financing

Conventional commercial mortgages require 25 to 35 percent down payment, offer 20 to 25 year amortization, and charge interest rates at prime plus a significant spread. Personal guarantees are standard and lenders hold you liable if the property underperforms. These terms limit your purchasing power and reduce cash flow from day one.

CMHC insured financing flips this equation. Down payments drop to as low as 5 percent with MLI Select points. Amortization extends to 40 or 50 years depending on energy efficiency and affordability criteria. Interest rates are tied to bond yields with lower spreads than conventional loans. Many CMHC insured mortgages offer non-recourse structures meaning the property is the only collateral and your personal assets stay protected.

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Eligible Properties

Property Types That Qualify for CMHC Insurance

CMHC multi unit financing applies to residential properties with five or more units. Single family homes and small multiplexes do not qualify. The property must generate rental income and meet CMHC underwriting standards for location, condition, and cash flow.

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Apartment Buildings

Purpose built rental buildings including low rise and high rise developments. New construction and existing stabilized properties with 5+ units qualify for CMHC insured financing.

Mixed Use Properties

Buildings with commercial space on the ground floor and minimum five residential units above. Residential income must represent the majority of total property revenue.

Student Housing

Multi unit residences serving post secondary students near colleges and universities. Properties must meet CMHC occupancy and rental income requirements for student housing classification.

Retirement and Seniors Housing

Senior living facilities and retirement residences with independent living units. Properties providing assisted living or nursing care may have additional CMHC requirements.

Why Choose Us

Real Support for Real Business Owners

Most consultants hand you a report and disappear. We work alongside you. From finding the right loan to managing your books, we stay involved until you see real results. Your problems become our problems and we do not walk away until they are solved.

A rejected application is not the end of the road. We review your situation, fix the gaps, and reapply with lenders who are more likely to say yes. We push until you get funded.

No two businesses are the same. We look at your specific numbers, your industry, and your goals before recommending anything. You get a plan built for you, not a recycled template.

Business loans, personal financing, and management support all under one roof. You do not need to juggle multiple advisors. One call to us handles everything.

About Inspired Management Consulting

Licensed Advisors

Our team includes certified professionals who meet industry standards and stay updated on regulations that affect your business.

10+ Years Experience

We have spent a decade helping small business owners across Canada navigate financing and management challenges.

No Hidden Fees

You will know exactly what you are paying for upfront. No surprise charges and no fine print that works against you.

Local Canadian Team

We are based in Canada and understand the local lending landscape, tax rules, and challenges small businesses face here.

Clients we’ve partnered with

  • Brentwood 1
  • Easylink 1
  • Flagship 1
  • SGS consultation
  • RR 1
  • Brentwood
  • Flagship
  • Easylink
  • SGS Constultation
  • RR
MLI Select Multi unit financing CMHC insured mortgage rates

Understanding CMHC Financing and Our Role in Your Approval

CMHC is Canada Mortgage and Housing Corporation, a federal Crown corporation that provides mortgage insurance for multi unit residential properties. When lenders have CMHC insurance backing the loan, they face less risk on default. This security allows them to offer borrowers lower interest rates, higher LTV ratios, and longer amortization periods than conventional commercial financing provides.

CMHC applications are complex and slow without proper preparation. At Inspired Management Consulting, we calculate your MLI Select score before you apply, prepare rent rolls and environmental reports, organize your financial package, and submit to CMHC approved lenders who prioritize well-structured files. We navigate the bureaucracy so your application moves through the queue faster and closes with the best terms available.

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FAQ’s

MLI Select is CMHC’s flagship insurance program for multi unit residential properties. It uses a point system based on affordability, energy efficiency, and accessibility to determine loan terms. Higher points unlock up to 95% LTV and 50 year amortization.

Properties earn points in three categories. Affordability points come from keeping rents below median market levels. Energy efficiency points come from meeting or exceeding energy performance standards. Accessibility points come from barrier-free unit designs. Total points determine your maximum LTV and amortization.

Standard CMHC loans offer up to 40 year amortization. MLI Select properties meeting energy efficiency or accessibility criteria can access up to 50 year amortization which significantly lowers monthly debt service payments.

CMHC insured mortgages are priced off Government of Canada bond yields plus a spread. Rates typically run 1 to 1.5 percent lower than conventional commercial mortgages due to reduced lender risk from government backing.

CMHC charges a mortgage insurance premium based on loan to value ratio and amortization period. Premiums range from approximately 1.5% to 6% of the loan amount. The premium can be added to the mortgage balance or paid upfront.

CMHC typically requires a minimum debt service coverage ratio of 1.10 to 1.20 depending on property type and location. Higher DSCR strengthens your application and improves approval odds.

Non-recourse financing means the lender can only claim the property as collateral in case of default. Your personal assets are protected. Many CMHC insured mortgages offer non-recourse structures unlike conventional commercial loans requiring personal guarantees.

A Phase 1 ESA evaluates potential environmental contamination on the property through historical records review and site inspection. CMHC requires Phase 1 reports to ensure no environmental liabilities affect property value or lender collateral.

A building condition report assesses the physical state of the property including structure, mechanical systems, roof, and common areas. CMHC uses this report to identify required repairs and estimate remaining useful life of major components.

CMHC focuses primarily on property cash flow and DSCR rather than personal credit. Strong property fundamentals and experienced ownership can offset weaker personal credit profiles in many cases.

CMHC offers higher LTV up to 95%, longer amortization up to 50 years, lower interest rates, and non-recourse options. Conventional commercial loans require 25 to 35% down payment, 20 to 25 year amortization, higher rates, and personal guarantees.

Yes. CMHC finances multi unit properties across Canada including secondary markets and smaller communities. Property must meet CMHC underwriting standards for location, rental demand, and cash flow regardless of market size.

No. We are not a lender. We act as your advisor and facilitate the CMHC application process. We calculate your MLI Select score, prepare your documentation package, and submit to CMHC approved lenders who finance multi unit properties.

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