To advise Approved Lenders of changes to CMHC’s multi-unit mortgage loan insurance (MU MLI) policies regarding rental achievement holdbacks.
CMHC regularly reviews its products and policies to ensure alignment with product intent and risk appetite.
Rental achievement holdbacks will no longer be a policy requirement for MU loan applications submitted under the MLI market rental product. Therefore, loans can be advanced up to 85% of the loan-to cost/loan-to-value (whichever is less) without the need for a rental achievement holdback. This change applies to all loan purposes under the MLI market rental product.
For loan applications submitted under the MLI Select product, in alignment with current policy, a rental achievement holdback may still be applied depending on the characteristics of the application.
The changes are effective immediately and will be applied to market rental applications submitted on or after July 3, 2025, previously submitted applications that are not yet approved, and previously approved applications that are not yet advanced.
The Handbook for CMHC Approved Lenders Part 2: Insurance Initiation (sections 3.1.3, 3.2, 3.3, 6.1.2, 6.2, 8.4, 9.1 and 9.4) will be updated as of July 14, 2025, to reflect the changes.
Please contact your CMHC Key Account Manager.
To advise Approved Lenders of changes to CMHC’s multi-unit mortgage loan insurance (MU MLI) premium structure and rates.
Every year, CMHC reviews its MU MLI premiums to determine if products are appropriately priced based on risk and capital needs, and to ensure that CMHC can continue to offer these products over the long term and through all economic cycles. Following the results of the annual review, CMHC will be updating both the premium structure and rates.
The revised premium structure and rates will improve alignment with the level of risk associated with specific loan characteristics; enable CMHC to remain appropriately capitalized over the long-term; and provide enhanced flexibility for borrowers in selecting the most desirable option based on their project financing needs. These changes also align with the new Mortgage Insurer Capital Adequacy Test requirements set out by the Office of the Superintendent of Financial Institutions which come into effect in January 2026.
Premium Schedules and Rates
Specific premium rates will apply to both the Market Rental and MLI Select products based on the Loan to-Value (LTV) ratio, as determined by CMHC, and the loan purpose, i.e., construction financing or all other loan purposes (purchase or refinance of existing properties and completion take-outs). Two premium schedules will be in place based on shelter types i.e., standard rental housing or all other shelter models (single room occupancy, student housing, retirement homes and supportive housing).
| Standard Rental Housing | |||
|---|---|---|---|
| Product | LTV | Construction Financing | All Other Loan Purposes |
| Market Rental and MLI Select |
Up to and including 65% | 3.25% | 2.60% |
| Up to and including 70% | 3.75% | 2.85% | |
| Up to and including 75% | 4.25% | 3.35% | |
| Up to and including 80% | 5.00% | 4.35% | |
| Up to and including 85% | 6.00% | 5.35% | |
| MLI Select Only | Up to and including 90% | 6.75% | 5.90% |
| Greater than 90% | 7.00% | 6.15% | |
| All Other Shelter Models | |||
|---|---|---|---|
| Product | LTV | Construction Financing | All Other Loan Purposes |
| Market Rental and MLI Select |
Up to and including 65% | 6.55% | 6.30% |
| Up to and including 70% | 6.85% | 6.60% | |
| Up to and including 75% | 7.15% | 6.90% | |
| Up to and including 80% | 7.30% | 7.05% | |
| Up to and including 85% | 8.00% | 7.75% | |
| MLI Select Only | Up to and including 90% | 8.25% | 8.00% |
| Greater than 90% | 9.00% | 8.75% | |
Surcharges will apply to both the Market Rental and MLI Select products based on loan characteristics. A new surcharge will apply where effective gross income is not met at the time of first advance. All surcharges are in addition to the base premium unless otherwise noted.
| Surcharge | Surcharge Amount |
|---|---|
| Extended Amortization | A 0.25% surcharge applies on the net loan amount for every five years, beyond the 25-year standard amortization period. |
| Non-Residential Space | A 1.00% surcharge applies on the portion of the loan applicable to the non-residential space. |
| Second Mortgage | A 0.50% surcharge applies to the outstanding balance of the first mortgage loan only. |
| Effective Gross Income Not Met | A 0.25% surcharge applies on the net loan amount where effective gross income is not met at the time of the first advance. This surcharge does not apply to construction financing. |
A new premium discount schedule will apply to all MLI Select applications where borrowers commit to affordability, energy efficiency and/or accessibility outcomes. The size of the discount increases with the number of points awarded and applies to the base premium plus any applicable surcharges.
| MLI Select Discount Schedule | |
|---|---|
| Min. 50 points | 10.00% |
| Min. 70 points | 20.00% |
| Min. 100 points | 30.00% |
The above noted policy changes are effective July 14, 2025, and will be applied to applications submitted on or after the effective date.
The Handbook for CMHC Approved Lenders Part 2: Insurance Initiation (sections 1.6 and 8.4) will be updated to reflect the changes.
Please contact your CMHC Key Account Manager.
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