Multi-unit developers across BC and Ontario are sitting on a goldmine. CMHC's MLI Select program offers unprecedented savings opportunities in 2026: but only for developers who understand the evolving point system and act before critical deadlines.
Here's the reality: Smart developers are already securing 20% premium discounts, 95% LTV financing, and 50-year amortization periods. The result? Project savings exceeding $200,000 on qualifying developments. Yet most builders remain unaware of these substantial cost reductions.
What MLI Select Delivers in 2026
The MLI Select Program transforms traditional multi-unit financing through three core mechanisms that compound into massive savings.
Premium Discount Structure
Your insurance premium savings scale directly with your point achievement:
- 50+ points: 10% premium discount
- 75+ points: 20% premium discount
- 100+ points: Maximum benefits plus enhanced terms
On a $5 million multi-unit project, a 20% premium discount alone saves $25,000-$40,000 in insurance costs. Scale this to larger developments, and you're approaching six-figure savings on premiums alone.
Extended Amortization Advantage
Access to 50-year amortization fundamentally changes your cash flow equation. Compare monthly payments on a $3 million mortgage:
- 25-year amortization: $14,200/month
- 50-year amortization: $8,900/month
- Monthly savings: $5,300
This $63,600 annual cash flow improvement preserves capital for additional acquisitions, renovations, or contingency reserves. Over the extended term, strategic reinvestment of these savings can generate hundreds of thousands in additional returns.
Higher Loan-to-Value Access
MLI Select provides up to 95% LTV financing on qualifying properties. For developers accustomed to 80% conventional financing, this represents massive capital preservation:
- $10 million development at 80% LTV: $2 million down payment required
- Same development at 95% LTV: $500,000 down payment required
- Capital preserved: $1.5 million
This freed capital can fund entire additional projects or provide substantial renovation budgets for value-add strategies.
Navigating the June 2024 Changes
CMHC restructured the scoring system in June 2024, eliminating the ability to reach 100 points through energy efficiency alone. Understanding these changes is critical for maximizing your 2026 savings.
Current Pathways to Maximum Points
Affordability-Only Route: Achieve 100 points by dedicating units to income-qualified tenants. Offering 25% of units at or below 30% of median renter income reaches the maximum threshold.
Combination Strategies:
- Affordability + Energy Efficiency = 100 points
- Affordability + Accessibility = 100 points
Smart developers are now designing projects that naturally incorporate affordability components, as this pathway offers the most straightforward route to maximum benefits.
Energy Efficiency Still Delivers Value
While energy efficiency alone no longer reaches 100 points, it remains valuable for combination strategies. High-performance building envelopes, energy-efficient systems, and renewable energy integration contribute significant points when paired with affordability measures.
Calculating Your $200k+ Savings Potential
Real savings emerge from the compound effect of multiple MLI Select benefits working together.
Case Study: 40-Unit Development
Project Value: $8 million
Traditional Financing: 80% LTV, 25-year amortization, standard premiums
MLI Select Structure: 95% LTV, 50-year amortization, 20% premium discount
Immediate Savings:
- Reduced down payment: $1.2 million capital preserved
- Premium savings: $48,000
- Total upfront benefit: $1.248 million
Ongoing Savings:
- Monthly payment reduction: $7,400
- Annual cash flow improvement: $88,800
- 10-year cash flow benefit: $888,000
Strategic Reinvestment: Using the $1.2 million preserved capital for additional acquisitions can generate substantial additional returns, easily pushing total program benefits beyond $200,000 within the first two years.
Maximizing Points for 2026 Projects
Your scoring strategy determines your savings level. Here's how successful developers optimize their applications:
Affordability Component Strategy
Rent-to-Income Targeting: Structure 20-25% of units for households earning specific income thresholds. This typically means rents at 30% of area median income or below.
Geographic Optimization: Different markets have varying median income levels. Surrey developers often find more favorable ratios than Vancouver core developers.
Unit Mix Planning: Smaller units naturally align with affordability targets while maintaining project viability.
Energy Performance Integration
Building Envelope Excellence: High-performance windows, insulation, and air sealing contribute substantial points while reducing long-term operating costs.
Mechanical Systems: Heat pumps, energy recovery ventilation, and high-efficiency appliances boost scores while appealing to environmentally conscious tenants.
Renewable Energy: Solar installations, geothermal systems, or district energy connections provide significant point contributions.
Critical 2026 Timing Considerations
September 30, 2026 Deadline: New MLI Select applications face program changes after this date. Projects not submitted by September 30, 2026, will operate under revised criteria that may offer reduced benefits.
Development Timeline Planning:
- Permit applications: Start immediately for 2026 completions
- Construction financing: Secure MLI Select pre-approval early
- Project scheduling: Build buffer time for unexpected delays
Smart developers are already securing MLI Select pre-approvals for projects completing in late 2026, ensuring they lock in current benefit levels.
Working with MLI Select Specialists
MLI Select applications require precise documentation and strategic structuring. CMHC evaluates projects against specific criteria, and minor oversights can cost thousands in lost benefits.
Application Components:
- Detailed energy modeling reports
- Affordability unit plans and tenant qualification procedures
- Accessibility feature documentation
- Construction and permanent financing coordination
Professional Navigation: Kraft Mortgages specializes in complex multi-unit financing structures, including MLI Select optimization. Our experience with CMHC requirements and lender coordination ensures you capture maximum available benefits while avoiding common application pitfalls.
2026 Market Positioning Advantages
MLI Select properties offer competitive advantages beyond immediate financing savings:
Tenant Appeal: Energy-efficient units with affordable components attract quality tenants and reduce vacancy rates.
Exit Strategy Benefits: Properties with CMHC backing and proven performance metrics command premium sale prices when you're ready to exit.
Portfolio Expansion: Capital preserved through MLI Select enables faster portfolio growth and geographic diversification.
Taking Action Before Deadlines
Your 2026 savings opportunity requires immediate action. Here's your next-step framework:
Phase 1 (Immediate): Contact MLI Select specialists to assess your current projects for program eligibility.
Phase 2 (30 days): Secure pre-approval documentation and begin application preparation for qualified developments.
Phase 3 (60 days): Submit applications for projects targeting 2026 completion, ensuring you capture benefits before program changes take effect.
The developers capturing $200,000+ in MLI Select savings aren't waiting for perfect timing: they're acting on available opportunities with expert guidance. Your competition is already moving. Contact our team to ensure you don't miss the substantial savings available through strategic MLI Select positioning in 2026.
About Varun Chaudhry
Licensed mortgage broker with over 18 years of experience in the Canadian mortgage industry. Specializing in MLI Select, construction financing, and self-employed mortgages across BC, AB, and ON.