In an MLI Select pro forma the CMHC premium is a cost line with three inputs: the loan-to-value band, the amortization surcharge and the points discount (10, 20 or 30 percent). Build that line first, then price the affordability commitment behind the points in rent. In the illustrative 48-unit example below, going from 50 to 100 points saves CAD 205,200 of premium and costs CAD 101,850 of first-year net operating income.
Published by Titleman, which makes an underwriting tool. Programs and premiums change; confirm with an approved lender. Updated 25 October 2026.
What changed on 14 July 2025
CMHC announced on 3 July 2025 that from 14 July 2025 multi-unit premiums are priced by loan-to-value, loan purpose and shelter type, and that MLI Select gains a premium discount schedule. Existing surcharges were unchanged. We do not print the earlier premiums: we did not verify them.
The grid, standard rental housing
From CMHC's fees and premiums sheet (2025 edition), construction financing. The 90% rows are MLI Select only.
| Loan-to-value | Up to 65% | 70% | 75% | 80% | 85% | 90% | Over 90% |
|---|---|---|---|---|---|---|---|
| Premium | 3.25% | 3.75% | 4.25% | 5.00% | 6.00% | 6.75% | 7.00% |
Surcharges: 0.25% of the net loan for every five years of amortization beyond 25; 1.00% on non-residential space; 0.50% for a second mortgage. The discount applies to the premium plus surcharges: 10% at 50 points, 20% at 70, 30% at 100.
What the points buy in new construction
On CMHC's MLI Select page, affordability alone scores 50, 70 or 100 points when 10%, 15% or 25% of units rent at 30% of median renter income for 10 years. Energy efficiency and accessibility add points. Fifty points allows up to 95% loan-to-cost, a 1.10 minimum coverage ratio for standard rental housing, up to 40 years of amortization and recourse. Seventy points allows 45 years; 100 points allows 50 years and limited recourse.
Worked example (illustrative figures, not a quote)
A 48-unit rental building costs CAD 18,000,000. Loan: 95% of cost, CAD 17,100,000, at an assumed 4.25%, monthly compounding. Market rent CAD 3,000 a month; affordable rent CAD 1,750; 3% vacancy; operating costs CAD 11,000 a unit. Affordability alone earns the points, units rounded up (10% of 48 is 4.8, so 5). The premium is an equity-funded cost line. At 50 points the rate is (7.00% + 0.75%) × 0.90 = 6.975%.
| Measure | 50 points | 70 points | 100 points |
|---|---|---|---|
| Affordable units | 5 | 8 | 12 |
| Amortization | 40 years | 45 years | 50 years |
| Premium rate | 6.975% | 6.40% | 5.775% |
| Premium | CAD 1,192,725 | CAD 1,094,400 | CAD 987,525 |
| Year-1 NOI | CAD 1,075,410 | CAD 1,031,760 | CAD 973,560 |
| Debt service | CAD 889,789 | CAD 853,204 | CAD 825,742 |
| Coverage | 1.21 | 1.21 | 1.18 |
| Equity (cost + premium - loan) | CAD 2,092,725 | CAD 1,994,400 | CAD 1,887,525 |
| Cash flow after debt service / equity | 8.87% | 8.95% | 7.83% |
Coverage clears 1.10 in every column, so the 95% cost limit sets the loan. Each tier lowers the equity check. Against that, 100 points instead of 50 gives up CAD 101,850 of NOI a year, CAD 1,018,500 over the 10-year commitment at flat rents, to save CAD 205,200 of premium once. A smaller gap between market and affordable rent would narrow this.
What this does not replace
It does not replace CMHC's underwriting, an approved lender's term sheet, a cost consultant's budget or a lawyer's reading of the affordability commitment. This page is a hand calculation: we have not run a CMHC case through the Titleman engine, and Titleman has no parcel or transaction data for Canada (our footprint statement). It works from the documents you send and open sources. A demo shows a run on your documents.
FAQ
How do I put the CMHC MLI Select premium into a development pro forma?
As a cost line: base premium for the loan-to-value band, plus the amortization surcharge, less the points discount, times the loan. CMHC lets the premium be added to the mortgage, so ask the lender whether it sits in the loan or in equity.
What changed in the MLI Select premiums in July 2025?
From 14 July 2025 premiums are priced by loan-to-value, loan purpose and shelter type, and MLI Select cuts the premium by 10, 20 or 30 percent at 50, 70 or 100 points.
Does a higher points tier always improve the pro forma?
No. In the example above, 100 points instead of 50 saved CAD 205,200 of premium and cost CAD 101,850 of NOI every year.