CMHC Rental Financing · MLI Select

Thinking of renting out a property? See if the numbers work — before you commit.

CMHC's rental programs can mean a smaller down payment, a longer payback, and better terms than a regular bank mortgage. This page explains it in plain language and lets you estimate your own project in a couple of minutes — in English or Persian.

Start here

How this calculator works

You don't need to be a finance person. Answer a few simple questions about the property, and the tool shows you — in everyday words — how big a mortgage it could support, how much of your own cash you'd need, and whether the project looks worth pursuing.

1

Tell us about the property

How many rental units, what it costs to buy or build, and roughly what the rent would be. Each box has a plain-language hint and an example.

2

We estimate what a lender sees

The tool runs the same checks a lender does — the income after costs, whether it covers the loan, and how much they'd lend — using current CMHC rules.

3

You get a clear read

A simple verdict — looks promising, marginal, or needs work — plus the loan, the cash to get in, and the yearly cash flow. Every result is explained below.

This is an estimate to help you think it through — not a quote, an approval, or a promise to lend. Your real numbers are confirmed by a CMHC-approved lender.

The basics

What is CMHC rental financing?

CMHC is Canada's housing agency. It insures mortgages on rental buildings of 5 or more units, which lets a lender offer you terms you can't get on a regular mortgage. Its main program — MLI Select — gives even better terms when your building is more affordable, more energy-efficient, or more accessible.

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Smaller down payment

Qualifying projects can be financed up to 95% of the cost — so you put in far less of your own cash than with a regular mortgage.

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Longer to pay it back

Up to 50 years to repay, which lowers the monthly payment and lets the property support a bigger loan.

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Better rates & terms

Because the loan is insured, pricing is better — plus discounts on the insurance fee, and reduced personal liability at the top tier.

Behind the scenes

What a lender is really checking

When you apply, a lender quietly asks four questions. This calculator answers the same four, so nothing in your meeting is a surprise. The plain-language idea comes first; the official term is in the small print, in case you want it.

① What's left after the bills?

They add up a year of rent, then subtract empty units and running costs (taxes, insurance, repairs, management). What's left is the property's real yearly income.
Technical term: Net Operating Income (NOI) — rent minus vacancy minus operating expenses.

② Does that income cover the loan?

They check that the yearly income comfortably exceeds the yearly mortgage payment — with a cushion, not just barely. This usually decides how much you can borrow.
Technical term: Debt Coverage Ratio (DCR/DSCR) — income ÷ loan payment. CMHC rental usually wants at least 1.10×.

③ How much will they lend?

There's a ceiling based on the property's value or cost — for qualifying CMHC projects, up to 95%. The smaller of "what the income covers" and "this ceiling" wins.
Technical terms: Loan-to-Value (LTV) and Loan-to-Cost (LTC) — the loan as a share of value or cost.

④ What do you bring, and what's the fee?

Whatever the loan doesn't cover, you bring as cash. CMHC also charges a one-time insurance fee, which is reduced for higher-scoring projects.
Technical terms: Equity / cash-to-close and the CMHC premium (the insurance fee, eff. July 14, 2025).
MLI Select

Score points → unlock better terms

You earn points by committing to affordability, energy efficiency, and/or accessibility. Your total lands you in one of three tiers — and the higher the tier, the better the financing (minimum 5 units required).

Entry level
50 pts
  • Up to 85% of value / 95% of cost
  • Up to 40 years to repay
  • 10% off the insurance fee
Strong
70 pts
  • Up to 95% financing
  • Up to 45 years to repay
  • 20% off the insurance fee
Best terms
100 pts
  • Up to 95% financing
  • Up to 50 years to repay
  • 30% off the fee + reduced personal liability
Estimate your project

Rental project calculator

Fill in what you know — every box has a hint and an example. As you type, the results update instantly. Don't worry about getting everything perfect; you can refine it with me later.

Pick the closest option. Example: buying a building that already has tenants → "Buy existing".
Separate homes in the building. Example: a triplex = 3. CMHC's program needs 5+.
Your own money for the down payment + closing. Example: $900,000.
$
What you'd pay for the property; add renovation cost if converting. Example: $2,100,000.
$
What one unit rents for each month. Example: $2,300.
$
Yearly interest on the loan. Example: 4.75%.
CMHC's insured program gives better terms but needs 5+ units. Fewer units → regular mortgage.
More affordable / green / accessible commitments = more points = better terms. Most aim for 100.
Fine-tuning (optional — sensible defaults are filled in)
Only change these if you have better numbers. They're the small assumptions behind the estimate.
Share of the year units sit empty. Example: 3%.
Taxes, insurance, repairs, management as a share of rent. Example: 32%.
Used to estimate the building's value from its income. Example: 5%.
Only used for a regular mortgage. Example: 25%.

Your estimate

Opens your print view — choose “Save as PDF”.
Get my full, deal-specific analysis →

Estimate only. Figures depend on your inputs and current CMHC rules; confirm with a CMHC-approved lender. Projects under 5 units are financed with a regular mortgage, not under CMHC multi-unit.

Make sense of it

Your results, explained

Here's what each number actually means — why it matters to you, and how a lender uses it. No jargon required.

💰 "You could finance"

What it meansThe size of mortgage this property can realistically support.
Why it mattersThe bigger this is, the less of your own cash you need to bring.
How a lender uses itThey lend the smaller of what the income covers and what the rules allow.

🔑 "Cash to get in"

What it meansThe total cash you need at closing: your down payment, the insurance fee, and closing costs.
Why it mattersThis is the real money you need on hand. The tool flags if your cash falls short.
How a lender uses itThey confirm you can fund the gap between the loan and the total cost.

📈 "Yearly cash flow"

What it meansThe rent left over after running costs and the mortgage payment, each year.
Why it mattersPositive means the property pays for itself; "cash-on-cash" is the return on your cash.
How a lender uses itThey want the income safely above the payment — that cushion is the debt-coverage check.

🏢 "Value when stabilized"

What it meansThe estimated value of the building once it's fully rented and running.
Why it mattersCompared to your cost, it shows the equity (profit margin) you'd create.
How a lender uses itIt can support the loan and a future refinance to pull cash back out.
Toronto · 2025–2026

What the market looks like

Rough benchmarks to sanity-check your inputs. Your own property may differ — these are for orientation.

Avg rent (new rental)
$2,073–$2,690
1-bed to 2-bed
GTA vacancy
~3%
New builds ~7% at lease-up
Cap rate
3.5–5.5%
By type & size
Build cost
$250–400/SF
Conversions $40k+/unit
A real Toronto example. A house on a main road bought for ~$800K, plus ~$150K to legally convert to a triplex (~$340K all-in), produced 3 units and $6,000+/month rent with $2,000+/month cash flow. After renovation it appraised around $1.1M — an ~$150K instant equity lift; a refinance pulled out ~$240K, leaving ~$100K in the deal.
Source: Elevate Realty, Toronto Multiplex Guide 2026 — illustration; results vary by deal.
Common questions

CMHC rental financing FAQ

Straight answers on how CMHC and MLI Select work for rental property in Ontario.

How many units do I need to qualify for CMHC?
CMHC's multi-unit insurance and the MLI Select program need a minimum of 5 units (50 units/beds for retirement homes). Smaller projects — a duplex to a fourplex — use a regular mortgage instead. The calculator flags this for you automatically.
What is MLI Select, and why does it matter?
MLI Select is CMHC's flagship rental program. You earn points by committing to affordability, energy efficiency, and/or accessibility, and your total (50 / 70 / 100) unlocks better terms: up to 95% financing, up to 50 years to repay, discounts on the insurance fee, and reduced personal liability at the top tier.
How little can I put down?
Qualifying MLI Select projects can be financed up to 95% of cost or value — far less cash than a regular mortgage. In practice the loan is usually capped by debt coverage (whether the income covers the payment), not the 95% ceiling, so your real cash-in depends on the property's income. The calculator shows both.
What do I have to commit to in exchange?
Measurable outcomes. For example, affordability commitments run a minimum of 10 years (with bonus points for 20). Energy commitments are verified by a qualified professional, and accessibility against the CSA B651:23 standard. The more you commit, the better your financing.
Is the calculator a quote or an approval?
No. It's an estimate for discussion only — not a quote, pre-approval, or commitment to lend. Actual financing depends on a full application, a CMHC-approved lender's underwriting, current rates, and CMHC approval. The insurance fees shown reflect CMHC's rates effective July 14, 2025.
Do you speak Persian / فارسی?
Yes. This whole page and calculator are available in Persian — use the فارسی toggle at the top right — and I'm happy to walk through your project in Persian or English. Send your details through the form below and I'll follow up in whichever you prefer.
Next step

Get your full, deal-specific analysis

Send me your project details and I'll run a complete CMHC analysis — the loan, the cash you'd need, the insurance fee, your returns, and a clear recommendation. No cost, no obligation.

What you'll get: a sized loan estimate, the cash you'd need to close, your projected returns, the documents required, and an honest view of whether to proceed.

Your project estimate from the calculator above is attached automatically. By submitting you agree to be contacted about your inquiry.