Specialized CMHC MLI Select financing and investment advisory for commercial real estate in Ontario and Alberta. From acquisition to construction — we structure capital that works.
Two provinces driving Canada's commercial real estate growth — each with distinct fundamentals, regulatory environments, and investment opportunities.
Ontario remains the dominant commercial real estate market in Canada, anchored by the Greater Toronto Area — one of North America's most resilient urban economies. Structural housing shortages, sustained immigration targets, and tightening vacancy rates continue to support rental demand across the province. Multi-residential and mixed-use assets have become the focus of institutional capital, with CMHC-backed financing enabling development economics that would otherwise be marginal.
The Ontario government's emphasis on housing supply — through streamlined approvals and density bonuses near transit — has created meaningful development pipelines in the GTA, Hamilton, Ottawa, and secondary markets like Kitchener-Waterloo and London. For investors, Ontario offers scale, liquidity, and a deep tenant base driven by a 15M+ population and ongoing net migration.
Alberta presents a compelling CRE investment thesis rooted in affordability, in-migration, and a business-friendly regulatory environment. The province's no-income-tax advantage, combined with energy sector prosperity and diversifying tech and financial services sectors, continues to draw both residents and corporations from higher-cost provinces — particularly Ontario and BC.
Calgary and Edmonton are experiencing purpose-built rental surges driven by population growth that outpaced housing supply in 2023–2024. Vacancy rates have tightened materially, rents have risen substantially, and institutional capital has increasingly redirected to Alberta in search of better development economics and higher stabilized yields. Alberta's Residential Tenancies Act has no rent control framework, which enhances long-term cash flow projections for new-build rental assets.
| Metric | Ontario (GTA) | Ontario (Secondary) | Alberta (Calgary) | Alberta (Edmonton) |
|---|---|---|---|---|
| Typical Cap Rate | 4.0 – 5.5% | 5.0 – 6.5% | 5.5 – 6.5% | 5.5 – 7.0% |
| Vacancy Rate (2024) | ~2.1% | 2.5 – 4.0% | ~1.5% | ~2.4% |
| Rent Control | Yes (RTA) | Yes (RTA) | No | No |
| Construction Cost (WF) | $380 – $550/SF | $300 – $420/SF | $280 – $380/SF | $260 – $360/SF |
| Land Transfer Tax | Provincial + Municipal (Toronto) | Provincial only | None | None |
| Income Tax | Provincial + Federal | Provincial + Federal | Federal only | Federal only |
| Population Growth | High (immigration) | Moderate–High | Very High | High |
| Approval Timelines | 18–36 months | 12–24 months | 8–18 months | 10–20 months |
| CMHC DSCR Benchmark | $830 maintenance + $555 wages PUPA | $830 maintenance + $555 wages PUPA | $830 maintenance + $500 wages PUPA | $830 maintenance + $500 wages PUPA |
Canada Mortgage and Housing Corporation's Multi-Unit Mortgage Loan Insurance Select program provides the most competitive financing terms available for purpose-built rental housing in Canada.
CMHC's MLI Select program is the premier institutional financing tool for multi-residential rental housing in Canada. It provides mortgage loan insurance on purpose-built rental projects, new construction, and certain acquisitions/refinances — enabling borrowers to access significantly higher loan-to-value ratios, extended amortization periods, and reduced debt service coverage requirements compared to conventional financing.
The program uses a points-based scoring system across three pillars: Affordability (up to 100 pts), Accessibility (up to 30 pts), and Energy Efficiency (up to 50 pts). Points earned determine the tier of benefits unlocked — from the baseline CMHC Standard program (no points, 85% LTV, 25-year amortization) up to the maximum 100-point tier (95% LTV, 50-year amortization).
For developers and investors, MLI Select is often the difference between a viable and non-viable project. The ability to finance at 95% LTV with a 50-year amortization reduces required equity substantially and improves cash-on-cash returns — making projects in higher-cost markets like Toronto and Calgary more pencil-able.
| Points Earned | Program Tier | Max LTV | Max Amortization | Min DSCR | MLI Premium Discount | Use Case |
|---|---|---|---|---|---|---|
| 0 pts | CMHC Standard | 85% | 25 years | 1.30× | — | Conventional acquisition or refinance with no enhancements |
| 50–69 pts | MLI Select 50+ | 85–95% | 40 years | 1.10× | 10% off premium | Projects with meaningful affordability or EE commitments |
| 70–99 pts | MLI Select 70+ | 95% | 45 years | 1.10× | 20% off premium | Projects with strong affordability focus or combined EE+accessibility |
| 100 pts | MLI Select 100 | 95% | 50 years | 1.10× | 30% off premium | Maximum benefit — deep affordability with EE or accessibility features |
Points awarded when a defined percentage of suites are rented at or below 30% of the area median household income (AMI). CMHC uses regional salary data to determine the affordable rent threshold for each market.
Points awarded for building design features that meet or exceed accessibility standards, including barrier-free suite design, universal design elements, and features serving persons with mobility limitations.
Points awarded for achieving specific energy performance targets — typically measured against the National Energy Code for Buildings (NECB) baseline or through an energy model demonstrating percentage improvement. Higher levels require a certified energy model.
CMHC premiums vary by LTV, financing type (new construction vs. purchase/refinance), and shelter type (Standard Rental vs. Other). An amortization surcharge of 0.25% applies for every 5 years above 25. MLI Select discounts of 10%, 20%, or 30% reduce the total premium rate at 50, 70, and 100 points respectively. Premiums are typically added to the loan amount (capitalized) rather than paid at closing. The Proforma Calculator below calculates all applicable fees automatically based on your inputs.
Enter your project details to receive an indicative CMHC MLI Select loan scenario, including NOI, estimated value, loan sizing, CMHC fees, and capital stack. For discussion and education purposes.
Disclaimer: All results are indicative only and are intended for scenario discussion and educational purposes. This calculator does not constitute a lender commitment, CMHC approval, or formal underwriting decision. Final loan terms require formal proforma validation, lender review, and CMHC underwriting. Consult a licensed mortgage broker for your specific transaction.
Whether you're evaluating a new acquisition, planning a construction project, or refinancing an existing asset in Ontario or Alberta — we can structure the right CMHC financing solution for your deal.