CMHC MLI Select Premiums 2025: Key Changes Every Multi-Family Investor Needs to Know

ribhurampersad
Jul 24
3 min read

Effective July 14, 2025, the Canada Mortgage and Housing Corporation (CMHC) has introduced a new pricing structure for multi-unit mortgage insurance, including the widely used MLI Select program. If you're investing in apartment buildings or purpose-built rentals, these changes will directly impact your financing strategy.

This guide breaks down everything you need to know about CMHC MLI Select premiums in 2025—what’s changed, how the new surcharges and discounts work, and what it means for your next deal.

What’s New in CMHC’s Multi-Unit Mortgage Insurance Pricing?

CMHC has moved to a risk-based pricing model for all multi-unit loan applications submitted on or after July 14, 2025. This shift introduces more nuanced pricing based on several deal-specific factors:

Higher-risk loans (e.g. high loan-to-value ratios or construction projects) will now pay higher premiums.
Lower-risk loans will benefit from reduced premiums.
Investors can now unlock premium discounts for delivering affordability, accessibility, or energy-efficient outcomes through the MLI Select points system.

1. Loan-to-Value (LTV) Ratio

Your LTV is now a key driver of your insurance premium. Here’s how it breaks down:

Loans ≤65% LTV receive the lowest premiums (as low as mid-2% range).
Standard 85% LTV stabilized loans now have a base premium of 5.35%.
High-leverage MLI Select deals (>90% LTV) can see premiums of 6.15% or more, and 7.00% for construction loans.

Bottom line: More leverage = higher premium.

2. Loan Purpose: Purchase vs. Construction

CMHC now prices construction loans higher than acquisitions or refinances:

At 80% LTV, a purchase/refinance premium might be 4.35%.
The same deal structured as a construction loan could be 5.00%.

This change reflects the added risk of new builds or major renovations. If you're planning a development, budget accordingly.

3. Amortization Period Surcharges

Longer amortizations are still allowed—but now they come at a cost:

30-year amortization: +0.25% surcharge
40-year amortization: +0.75%
50-year amortization: +1.25%

MLI Select loans are no longer exempt from these surcharges. CMHC has aligned the rules across all programs to improve consistency and risk control.

4. EGI Surcharge for Unstabilized Income

If your property does not meet its Effective Gross Income (EGI) target by the time of first advance (common in new builds), CMHC applies a 0.25% surcharge. This encourages faster lease-up and ensures your pro forma reflects actual performance.

5. MLI Select Discounts: Rewarding Impactful Projects

MLI Select offers a point-based discount system based on your project’s affordability, accessibility, and energy performance. Here’s the discount breakdown:

50+ points: 10% premium reduction
70+ points: 20% reduction
100 points: 30% reduction

The discount applies after surcharges. For example, if your all-in premium is 6.35% and you earn 70 points, the final premium becomes 5.08%.

How to Calculate Your Final CMHC Premium

Here’s a 3-step approach:

Start with the Base Premium: Based on your LTV and loan type.
Add Surcharges: For long amortizations, construction risk, or lease-up delays.
Apply Discounts (MLI Select only): Based on outcome points.

Example:

85% LTV acquisition = 5.35% base
40-year amortization = +0.75%
Total before discount = 6.10%
Score 70 points in MLI Select = 20% discount
Final premium = 4.88%

Premiums are calculated as a percentage of the loan and are typically capitalized into the mortgage.

Why This Matters for Real Estate Investors

While premiums may be higher for highly leveraged or long-amortization loans, the benefits of CMHC financing remain strong:

Up to 95% LTV
Amortizations up to 50 years
Lower interest rates than conventional financing
Improved cash flow and ROI

Even with increased premiums, MLI Select often delivers 12%+ savings in monthly mortgage payments compared to conventional loans.

Next Steps for Apartment Investors

CMHC’s updated MLI Select pricing rewards investors who deliver affordable, accessible, and sustainable housing—but it also penalizes riskier deal structures.

Before you submit your next CMHC application: