MLI Select

Our mortgage loan flexibilities are available for both new and existing projects. They can be used for standard rental buildings, single room occupancies (SRO), supportive housing and retirement homes. Student housing projects are only eligible to qualify under energy efficiency and accessibility.

To be eligible your project must have a minimum of 5 units except retirement homes where a minimum of 50 units/beds is required. Non-residential space must not exceed 30% of the gross floor area nor 30% of total lending value.

The project must not be subject to any prohibition under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

Your project must meet a set of key criteria related to affordability. For MLI Select, affordability qualification is based on median renter income (XLSX) for both existing properties and new construction projects.

If renter income data is not available for your specific market, we will accept income data from comparable centers, provincial data or comparable rural centers.

Affordability criteria applies for a minimum of 10 years with borrowers committing to 20 years receiving an additional 30 points.

The base affordable rents for the designated affordable units must not increase by an amount greater than the annual increase permitted under applicable legislation/regulations. In the absence of legislation/regulations limiting the annual increase applicable to the subject unit, then rent increases will be limited to the applicable consumer price index for rented accommodations, as indicated in the row entitled “Rented accommodation” in the applicable Statistics Canada table: Consumer Price Index, Shelter, by Province or Territory–Rented Accommodation.

For this part, we will use the attestation of a qualified professional as well as the use of third-party building standards and certifications to validate the energy efficiency commitments of your application.

Qualified professionals include those with energy modelling experience such as:

• Professional Engineer
• Architect
• Certified Engineering Technologist (CET)
• Certified Energy Manager (CEM)

Also, an appropriate energy simulation software must be used to conduct the analysis. More information on the approved software and certifications can be found in the MLI Select Required Documentation Guide (PDF).

One of the objectives of MLI Select is to support the preservation and the creation for accessible rental housing across the country.

The commitment to accessibility is based on the number of units that are considered accessible in accordance with the CSA standard B651:23, the principals of universal design or meet Rick Hansen Foundation Accessibility Certification v.4.0 standards.

All units in the project (ie., both accessible and non-accessible units) must be 100% visitable* and all common areas within the Project must be barrier free, each in accordance with the CSA standard B651-2023.

We will use a signed attestation that supports the commitment to achieving the accessibility criteria, or confirmation of achievement within the permitted timeframe. Attestations are to be completed by an architect or designated accessibility consultant and submitted at time of application.

* CSA definition of visitable - In relation to residential accommodation, any dwelling [unit] that offers a basic level of access to accommodate visitors such as people who use a wheeled mobility aid, people who are elderly, or residents who might have a temporary disability. Visitable dwellings allow a person to enter a dwelling safely, manoeuvre independently throughout the visitable level, and use the toilet facilities.

For more details regarding MLI Select please refer to the following documentation:

• MLI Select Required Documentation Guide (PDF)
• Attestation for social outcomes (PDF)
• Attestation for energy efficiency (PDF)
• Attestation for accessibility (PDF)
• Multi-Unit fees and premiums at-a-glance (PDF)
• Certificate of Insurance — application form (PDF) **Important: To use this interactive PDF, right click (Ctrl + click on Mac) the link to save the file, and then open it in Adobe Acrobat.

1. Will you still offer MLI Flex? If not, when will it end?
   • MLI Select came into effect as of March 7, 2022 and has replaced our previous MLI Flex product. Applications for MLI Flex are no longer accepted.
2. Will I have to submit additional documentation for the commitments being made?
   • Yes, depending on the commitments you are making such as climate or accessibility, additional documentation will be required. Please refer to the MLI Select required documentation guide (PDF).
3. How can I find the median renter income for my market?
   • Median renter income data can be found here.
4. How will energy efficiency commitments be monitored?
   • At time of application, the Approved Lender must submit to CMHC Underwriting documentation provided by the borrower that demonstrates the borrower’s commitment to achieving the Energy Efficiency Criteria.
   • Within 60 days of the final advance, the Approved Lender must obtain from the borrower a signed attestation stating that the Energy Efficiency Criteria has been satisfied.
5. Will CMHC consider/accept modeling against local building codes instead of NECB or NBC?
   • In an effort to standardize our programs, we will not be accepting modeling against local building codes. However, and in addition to national codes, CMHC will accept a number of building certificates to demonstrate adherence to climate commitments.
6. Will I still get an energy efficiency rebate on my premium?
   • As MLI Select offers reduced premiums as well as other incentives for energy efficiency commitments, CMHC will no longer offer energy efficiency rebates.
   • Applications previously approved under MLI Flex or our Market MLI prior to the launch of MLI Select will still be eligible for the energy efficiency premium rebate.
7. Are there technical requirements for the energy simulation (standards, qualifications, P.Eng. stamp, etc.)?
   • Yes, the energy simulation must be prepared by a qualified professional.
     • A qualified professional can be a professional engineer, architect, certified engineering technologist or a certified energy manager for Part 3 construction.
     • A residential energy advisor who is accredited by Natural Resources Canada, or equivalent, can prepare the energy simulation for low-rise (Part 9) and small multi-unit residential buildings with less than 4 stories.
     • CMHC accepted energy simulation software options are compliant with the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) Standard 140.
8. Is fuel switching still allowed when modelling against a NECB 2017 compliant reference building?
   • Yes, it’s allowed. Our energy and greenhouse gas minimum requirements encourage performance improvements over a baseline building permitted under NECB 2017 and local codes and regulations. The baseline building design may be modelled with natural gas space heating and domestic hot water heating systems (if permitted by code) and the proposed actual building design may be modelled with any code-compliant alternative system needed to achieve the requisite energy and greenhouse gas savings. The reference building must also be reasonable or commonly built for the jurisdiction and permitted by local code.
9. Can Photovoltaic Panels (PV Systems) be used to qualify for energy efficiency points?
   • PV systems may be considered when they form part of an overall approach that includes energy efficiency and conservation measures designed to reduce building energy consumption and GHG emissions; however, PV systems will not be accepted as a sole source used to qualify. The maximum energy savings provided by PV systems will be capped at 15% of the total energy reduction. To be considered, the PV system must be installed to supply energy directly to the building (i.e., behind the meter installation) and all components of the system must be owned by the building operator. This aligns with program intent of ensuring that energy efficiency commitments result in reduced energy consumption at the building level.
10. How do we model space use change? For example, a non-air-conditioned parking garage into residential rental suites.
    • To model space use change for an energy simulation, the existing building should be modified to include the number of units that will be added. The additional units should be modeled using the same energy consumption as existing units in the building. This provides a better comparison between the existing building and proposed changes.
11. If a rental building uses renewable natural gas instead of standard natural gas, will this help reduce its greenhouse gas score?
    • No, we do not permit the switching of emissions factors for renewable natural gas between the reference building model and proposed building model. Energy provided from the burning of natural gas must be modelled using a consistent emissions factor.
12. Can the use of low-flow water fixtures and energy efficient appliances be used to help meet the energy efficiency requirements under MLI Select?
    • Yes, they can. The energy modeling report provided must compare a baseline energy consumption and hot water usage for standard appliances against the proposed low-flow and energy efficient appliances. It also needs to list the type and number of each appliance and the reductions in hot water usage or energy consumption each appliance provides.