CMHC MLI Select

Someone buying a business that owns apartment buildings may meet MLI Select when a lender proposes insured financing. CMHC describes itself as the only provider of mortgage loan insurance for multi-unit residential properties in Canada, and says it supports the construction, purchase and refinancing of multi-unit rental properties.

How the point system works

CMHC says MLI Select awards points for commitments on affordability, energy efficiency and accessibility, and that the product is available for new construction and existing properties. A borrower can focus on one area or combine commitments to increase points and incentives. The scoring tables, and the terms each score unlocks, are on CMHC’s page, so read them there directly.

What to ask

• Does the lender intend to use MLI Select, and which commitments would the borrower make?
• Would those commitments stay with the property after a later sale?
• How would they affect rents or renovation plans?

Whether to buy the operating company or the property is a separate question, covered in buying the business versus buying the real estate.