The landscape of multi-unit mortgage flexible financing in Canada is evolving, with significant updates to CMHC’s MLI Select program as of November 15, 2024. Let’s dive into what these changes mean for property investors and developers.

What’s New in MLI Select?

CMHC has introduced several key updates to their multi-unit mortgage loan insurance programs, focusing on three core pillars:
• Affordability
• Accessibility
• Climate Compatibility

Latest Program Changes:

1. Appraisal Requirements
– New mandatory appraisals for ALL multi-unit applications
– Previously only required for properties under 25 units
– Enhanced due diligence process

2. Extended Amortization Options
– Maximum amortization period increased to 50 years for new construction
– Previously capped at 40 years
– Aims to improve project viability

3. Enhanced Financing Options
– Financing available up to $58M+
– LTV ratios up to 75%
– Competitive rates starting at Prime +2%

Impact on the Market:
The Q3 2024 results show impressive growth:
– 65,000 multi-unit residential units insured
– 26% increase from 2023
– Strong focus on affordable housing initiatives

Key Benefits for Developers:
• Fast approval processes
• Flexible financing terms
• Support for sustainable building practices
• Enhanced affordability measures

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