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Types of mortgages

CMHC rental housing loan insurance

Français : SCHL — Programme financement immeubles locatifs

CMHC mortgage loan insurance program specifically designed for rental buildings of 5+ units, offering preferential financing conditions (LTV up to 85%).

Definition

CMHC offers mortgage loan insurance products specifically designed for residential rental buildings of 5 units or more (multi-residential segment).

**Main products**: 1. **Rental property insurance**: for existing buildings, new construction, major renovations 2. **Rental Construction Financing Initiative (RCFI)**: direct financing for new affordable construction 3. **MLI Select program**: reduced premiums for buildings achieving affordability, energy efficiency and universal accessibility thresholds

**Advantages vs. conventional financing**: - Maximum LTV: 85% (vs. 75-80% conventional) - Amortization: up to 40 years for new projects - Rates: generally more competitive (government guarantee reduces risk) - Availability in markets served across Canada

**MLI Select (2022-present)**: The MLI Select program offers premium reduction based on a point system: - Points for financial accessibility (units below AMI thresholds) - Points for energy efficiency - Points for universal accessibility (persons with disabilities) More points → reduced insurance premium → financing savings

**Access**: Through CMHC-approved lenders (chartered banks, credit unions). Mortgage brokers specialized in multi-residential navigate these programs for developers.

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This definition is provided for informational purposes only and does not constitute legal, tax, or financial advice. For a personal situation, consult an AMF-licensed mortgage broker, notary, accountant, or the relevant financial institution.