Size a CMHC-insured multi-unit loan with two tests and take the smaller result: loan-to-value (value times the limit for the points tier) and debt coverage (net operating income divided by 1.10, divided by the debt constant). In the illustrative example below, the insured loan sizes at CAD 21.9 million at 70 points against CAD 13.9 million for a conventional loan on the same building.
Published by Titleman, which makes an underwriting tool. Programs change; confirm with an approved lender. Updated 25 October 2026.
The two tests for an existing building
On CMHC's MLI Select page, an existing property at 50 points allows up to 85% loan-to-value, a 1.10 minimum coverage ratio and up to 40 years of amortization, with recourse. From 70 points the limit is 95% and 45 years; at 100 points amortization runs to 50 years with limited recourse. The 1.10 applies to standard rental housing; the page gives 1.20 for other shelter models and 1.4 for non-residential space.
- LTV loan = lending value × limit.
- Coverage loan = (NOI ÷ 1.10) ÷ debt constant.
The debt constant is the annual payment per dollar borrowed at the rate and amortization. The smaller loan is the loan, and the test that produced it binds. See the general method.
Worked example (illustrative figures, not a quote)
An existing rental building has NOI of CAD 1,200,000 and a lending value of CAD 24,000,000. Insured loans are assumed at 4.25%. The conventional loan is assumed at 5.25% over 25 years, a 75% LTV limit and a 1.20 coverage minimum; these are invented lender terms, not anyone's policy. Payments are monthly. The premium uses the "all other loan purposes" column of CMHC's fees and premiums sheet, and is paid from equity.
| Measure | Conventional | MLI Select 50 pts | 70 pts | 100 pts |
|---|---|---|---|---|
| Amortization | 25 years | 40 | 45 | 50 |
| Debt constant | 7.191% | 5.203% | 4.989% | 4.829% |
| LTV loan | CAD 18,000,000 | CAD 20,400,000 | CAD 22,800,000 | CAD 22,800,000 |
| Coverage loan | CAD 13,906,000 | CAD 20,965,000 | CAD 21,864,000 | CAD 22,591,000 |
| Loan (binding test) | CAD 13,906,000 (coverage) | CAD 20,400,000 (LTV) | CAD 21,864,000 (coverage) | CAD 22,591,000 (coverage) |
| LTV at the loan | 57.9% | 85.0% | 91.1% | 94.1% |
| Debt yield (NOI ÷ loan) | 8.63% | 5.88% | 5.49% | 5.31% |
| Premium rate | none | 5.49% | 5.72% | 5.18% |
| Premium | none | CAD 1,119,960 | CAD 1,250,621 | CAD 1,170,214 |
| Equity (value - loan + premium) | CAD 10,094,000 | CAD 4,719,960 | CAD 3,386,621 | CAD 2,579,214 |
Premium rates: base for the LTV band plus 0.25% per five years beyond 25, then the points discount. At 70 points, (6.15% + 1.00%) × 0.80 = 5.72%.
What moves the answer
- Rate. At 70 points, the same loan at 5.25% instead of 4.25% sizes at about CAD 18.8 million, 78.4% LTV, CAD 3.05 million less.
- NOI. CAD 100,000 less NOI cuts the 70-point loan by about CAD 1.82 million and the conventional loan by about CAD 1.16 million. Check which NOI the underwriter accepts.
- Amortization. Where coverage binds, going from 45 to 50 years added CAD 727,000 in the example but also added 0.25% to the base premium before the discount. Where LTV binds (50 points), it adds nothing.
What this does not replace
It does not replace CMHC's underwriting, an approved lender's credit decision, a licensed appraisal for lending value, or a lawyer's reading of the commitments. 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 statement of footprint). It works from the documents you send. A demo shows a run on your documents.
FAQ
How do I size a CMHC-insured multi-unit loan?
Run two tests and take the smaller loan. The loan-to-value test is value times the limit for your points tier (85 percent at 50 points, 95 percent from 70 points for an existing building). The coverage test is net operating income divided by 1.10, divided by the debt constant for the rate and amortization. In the illustrative example on this page the coverage test set the loan at 70 and 100 points.
What DSCR does CMHC require for MLI Select?
CMHC's MLI Select page gives a minimum debt coverage ratio of 1.10 for standard rental housing, 1.20 for other shelter models and 1.4 for non-residential space.
Why does a CMHC-insured loan size larger than a conventional loan?
Three inputs move together: a lower coverage minimum (1.10 against an assumed 1.20), a longer amortization (up to 40, 45 or 50 years by points tier against an assumed 25) and a lower assumed rate. In the illustrative example the insured loan was CAD 21.9 million at 70 points against CAD 13.9 million conventional, before the insurance premium.
What does the insurance cost?
A one-time premium set by loan-to-value band, loan purpose and shelter type, plus surcharges, less the points discount of 10, 20 or 30 percent. In the illustrative example at 70 points it was 5.72 percent of the loan, CAD 1,250,621. Titleman does not quote CMHC or lender rates.