CMHC Select Financing: Boost Your Multi-Family Projects
/What Is CMHC Select
When it comes to multi-family rental development, financing is often the biggest hurdle. The CMHC Select program—formally known as CMHC MLI Select—was designed to help developers, investors, and builders access higher loan-to-value (LTV) ratios, longer amortizations, and lower interest rates.
Unlike traditional mortgages, CMHC Select focuses on social, environmental, and affordability goals, rewarding projects that provide long-term rental stability. For developers in Alberta cities such as Calgary, Banff, and Edmonton, this financing option can significantly reduce upfront equity requirements and increase long-term returns.
Scoring System Explained
CMHC Select uses a point-based scoring system to determine eligibility and benefits. A project must achieve at least 50 points across three main categories:
Affordability – Projects that commit to below-market rents or long-term rental agreements earn more points.
Accessibility – Incorporating barrier-free units and universal design increases the score.
Energy Efficiency – Meeting or exceeding energy performance standards adds significant value.
The higher your score, the more favorable the financing terms. For example, projects with strong performance in all three areas may qualify for up to 95% LTV financing and 50-year amortization.
Tips for Application
Applying for CMHC Select financing can be competitive. Here are some practical tips:
Plan ahead: Engage your architect and consultants early to ensure design meets accessibility and energy standards.
Document thoroughly: CMHC requires clear proof of affordability agreements, energy reports, and design compliance.
Work with experienced lenders: Not all lenders are familiar with CMHC Select; choose one that understands the program.
Leverage professional networks: Consulting with developers who’ve successfully applied can save time and reduce errors.
Raynow Project Insights
At Raynow Homes, we’ve successfully applied CMHC Select financing for multi-family projects in Calgary and Banff. One example is our Banff 4-plex project, which achieved financing benefits by meeting energy efficiency targets and offering long-term rental units.
From our experience, the key to success lies in integrating affordability and sustainability into the design phase, rather than treating them as last-minute add-ons.
For developers and investors, CMHC Select isn’t just about cheaper financing—it’s a pathway to building long-lasting, stable rental communities that also generate strong returns.
