CMHC Calculator (Standard vs MLI Select)
Estimate CMHC multi-unit mortgage loan insurance costs including base premium, extended amortization surcharges, MLI Select discounts, and application fees for insured financing scenarios.
Understanding CMHC Multi-Unit Insurance
CMHC multi-unit mortgage loan insurance protects lenders against borrower default on loans for rental apartment buildings with 5 or more units. This insurance enables lenders to offer higher loan-to-value (LTV) ratios (up to 85% for Standard, up to 95% for MLI Select) and longer amortization periods (typically up to 40-50 years), making multifamily financing more accessible for Canadian real estate investors and developers.
CMHC Standard (MLI Market): The conventional program with standard premium rates based on LTV tiers. Maximum LTV is typically 85%. Premium rates vary by shelter model (Standard Rental Housing vs. Other Shelter Models) and loan purpose (Construction vs. Purchase/Refinance). For more information, visit the CMHC Multi-Unit Mortgage Loan Insurance page.
CMHC MLI Select: A premium program offering higher LTV (up to 95%) and premium discounts based on a points system. Properties earn points by meeting criteria in three categories: Energy Efficiency (e.g., ENERGY STAR certification, net-zero ready designs), Accessibility (e.g., barrier-free units, universal design features), and Affordability (e.g., rent-geared-to-income units, long-term affordable commitments). Reaching 50 points earns a 10% discount, 70 points earns 20%, and 100 points earns 30%. Learn more at the CMHC MLI Select page.
Extended Amortization Surcharges: CMHC charges an additional 0.25% premium surcharge for each 5-year increment beyond 25 years. For example, a 40-year amortization incurs a 0.75% surcharge (3 increments: 30/35/40 years). This surcharge is added to the base premium before any MLI Select discounts are applied.
Premium Roll-In: The insurance premium can typically be added to the mortgage loan amount, increasing the insured mortgage balance. However, provincial premium tax cannot be financed and must be paid in cash at closing. Application fees are also separate.
Disclaimer: Rates, fees, and program requirements are subject to change. Always verify current information with CMHC and your lender before making financing decisions.
Calculator Inputs
1. Deal / Property Basics
2. Financing Structure
What does 'EGI met' mean?
EGI (Effective Gross Income) is considered 'met' when rental income is stabilized and operating close to expected long-term levels. When income is still ramping up (lease-up, elevated vacancy, or transitional operations), EGI is considered 'not met.'
Standard capped at 85% LTV; MLI Select can allow up to 95% LTV subject to underwriting and program rules.
Extended amortization beyond 25 years incurs a 0.25% surcharge per 5-year increment.
For reference only; does not affect premium calculation.
Provincial tax CANNOT be added to the insured loan amount and must be paid in cash.
4. Application Fees (optional)
Application Fee Logic (verify with CMHC):
• Up to 2 advances: $150/unit (or $100/bed) for first 100; then $100 per unit/bed; max $50,000
• Greater than 2 advances: $200/unit or bed for first 100; then $100; max $55,000; plus $350 per advance beyond 2nd
CMHC Financing FAQ
What does 'EGI met' vs 'EGI not met' mean?
EGI (Effective Gross Income) represents a property's stabilized rental income after vacancy and typical collection loss.
EGI met (stabilized): The property is operating at or near expected long-term occupancy and income levels. This is typical for established, stabilized assets.
EGI not met (not stabilized): The property's income has not yet stabilized. This may occur during lease-up, following renovations, or when vacancy is temporarily elevated.
In CMHC underwriting, income stability matters because it affects how loan sizing, premiums, and conditions are assessed. When EGI is not met, CMHC and lenders may apply additional conditions or conservative assumptions until income is proven.
How this calculator uses EGI: This calculator provides educational estimates and assumes stabilized income when estimating CMHC premiums. When 'EGI not met' is selected, the tool clearly flags this assumption so users understand that final premiums and loan terms are subject to CMHC and lender underwriting.
EGI Not Met Surcharge: When income is not stabilized on term loans, CMHC may apply a surcharge at first advance. This calculator models that surcharge separately for transparency.
What is CMHC multi-unit mortgage loan insurance?
CMHC (Canada Mortgage and Housing Corporation) multi-unit mortgage loan insurance protects lenders against borrower default on loans for rental apartment buildings with 5+ units. It allows lenders to offer higher loan-to-value (LTV) ratios and longer amortization periods, making multifamily financing more accessible for investors and developers.
What is the difference between CMHC Standard (MLI Market) and MLI Select?
CMHC Standard (MLI Market) is the conventional CMHC-insured loan program with standard premium rates and a maximum LTV of 85%. MLI Select is a premium program that offers LTV up to 95% and premium discounts (10%/20%/30%) based on meeting specific criteria measured by a points system (50/70/100 points). MLI Select properties must meet higher standards for energy efficiency, accessibility, and affordability.
How does the MLI Select points discount work?
MLI Select uses a points-based system to qualify properties for premium discounts. Properties earn points by meeting criteria in categories like energy efficiency, accessibility, and affordability. Reaching 50 points earns a 10% premium discount, 70 points earns 20%, and 100 points earns 30%. The discount applies to the total premium (base premium plus any surcharges).
What is the extended amortization surcharge?
CMHC charges an additional 0.25% premium surcharge for each 5-year period beyond 25 years of amortization. For example, a 40-year amortization has 3 increments beyond 25 years (30/35/40), resulting in a 0.75% surcharge added to the base premium rate. This surcharge is applied before any MLI Select discounts.
Can the premium be added to the mortgage loan?
Yes, the CMHC insurance premium can typically be added to (rolled into) the mortgage loan amount, meaning the borrower does not need to pay it upfront in cash. However, any provincial premium tax or surcharge cannot be added to the loan and must be paid in cash at closing. Application fees are also paid separately.
How do I earn MLI Select points for my property?
MLI Select points are earned through verified commitments in three main categories: Energy Efficiency (e.g., ENERGY STAR certification, net-zero ready designs, high-efficiency systems), Accessibility (e.g., barrier-free units, universal design features, wheelchair accessibility), and Affordability (e.g., rent-geared-to-income units, long-term affordable housing commitments). Each category offers different point values based on the level of commitment. CMHC provides detailed scorecards and verification requirements.
Are CMHC premium rates and fees fixed?
No. CMHC premium rates, surcharge schedules, MLI Select discount thresholds, and application fees are subject to change. Always verify current rates and program requirements with CMHC directly or consult with your lender or mortgage advisor before finalizing your financing structure. This calculator provides estimates only and should not be used as a binding quote.
What are typical CMHC application fees?
For properties with 5+ units, application fees are typically calculated on a per-unit or per-bed basis. For loans with up to 2 advances, fees are $150 per unit (or $100 per bed) for the first 100 units/beds, then $100 thereafter, capped at $50,000. For loans with greater than 2 advances, fees are $200 per unit/bed for the first 100, then $100, capped at $55,000, plus $350 per advance beyond the 2nd. Verify exact fees with CMHC.
This calculator is for educational and illustrative purposes only. It does not constitute financial, investment, tax, or legal advice. Results are estimates and may not reflect actual outcomes. CMHC rates, fees, and program requirements are subject to change. Always consult qualified professionals and verify all rates/fees with CMHC and your lender before making financing decisions.