Financing a multiplex in Canada
How a project is financed decides how much equity it needs. These guides explain CMHC's MLI Select and construction financing.
Start here
Capital
The MLI Select Requirements That Actually Decide If Your Multiplex Qualifies
MLI Select has a short list of mandatory floors (unit count, property type, accessibility) that disqualify a project outright, and a longer list of optional point-earners that only change the discount. Here is exactly which is which, with CMHC's numeric thresholds.
August 15, 2026
Capital
MLI Select for a Toronto Multiplex: What the Discount Actually Costs You
MLI Select's lower premium and higher leverage come with a binding 10-year rent cap and reporting duties. Here's the breakeven math against CMHC Standard financing, and where the discount stops paying off.
August 4, 2026
Land
MLI Select multiplex financing: a developer's guide
August 3, 2026
Land
Construction financing for small developers in Canada
August 1, 2026
Common questions
What is CMHC MLI Select?
MLI Select is CMHC's points-based mortgage loan insurance product for rental buildings of five or more units. Projects earn points for affordability, energy efficiency, and accessibility commitments, and the total score sets the loan-to-value ceiling, amortization period, and part of the insurance premium.
From: CMHC MLI Select: A Complete Guide for Toronto Multiplex Owners
What is the minimum number of units to qualify for CMHC MLI Select?
5 units, except retirement homes, which need a minimum of 50 units or beds. Below 5 units, a property cannot enter the program at all, regardless of how many points it would otherwise score.
From: The MLI Select Requirements That Actually Decide If Your Multiplex Qualifies
Can a fourplex in Toronto qualify for CMHC MLI Select?
No. MLI Select requires a minimum of 5 units. A Toronto fourplex is not eligible for MLI Select at all; only a 5-unit-plus building, such as a sixplex, can apply, per CMHC's own eligibility criteria.
From: MLI Select for a Toronto Multiplex: What the Discount Actually Costs You
How many points do I need to qualify for CMHC MLI Select?
A minimum of 50 points across affordability, energy efficiency, and accessibility unlocks MLI Select, including up to 95% loan-to-cost on new construction right away. Reaching 70 points raises the loan-to-value ceiling on existing properties from 85% to 95% and extends amortization from 40 to 45 years. Reaching 100 points extends amortization to 50 years and switches the loan to limited recourse. Loan-to-cost on new construction stays at 95% at every tier; it does not climb further at 70 or 100 points.
From: CMHC MLI Select: A Complete Guide for Toronto Multiplex Owners
Does CMHC MLI Select require a minimum level of energy efficiency?
No. Energy efficiency is entirely optional under MLI Select. A project can hit the 50-point minimum through affordability and accessibility alone, with zero energy points. New construction still has to meet standard building code, but that's a general legal requirement, not an MLI Select-specific floor.
From: The MLI Select Requirements That Actually Decide If Your Multiplex Qualifies
How long is the MLI Select commitment period?
A minimum of 10 years for the affordability and rent-cap commitment. Borrowers who commit to 20 years receive an additional 30 points toward their score, which can unlock higher leverage, longer amortization, and, at 100 or more total points, limited-recourse financing.
From: MLI Select for a Toronto Multiplex: What the Discount Actually Costs You
The capital behind a build
TESA Capital structures the debt and equity behind a project. The numbers it works from come out of the feasibility study.
Other topics
Zoning and what you can build
Toronto allows up to four homes on most residential lots, and up to six in nine wards. These guides set out what is as-of-right and how to check a specific lot.
4 guides
Garden and laneway suites
A second building at the back of the lot is often the simplest way to add a home. These guides cover which lots qualify and what a suite costs to build.
3 guides
Severance and approvals
Splitting a lot or asking for a variance means an application to the Committee of Adjustment. These guides explain the legal tests and what happens at the hearing.
2 guides
Feasibility and site analysis
Before any drawings, two questions decide a project: what can be built here, and does it pay. These guides show how to test a lot and a deal before you commit money.
5 guides
Construction costs and steel framing
Hard costs and the framing system decide most of a multiplex budget. These guides break down the numbers and explain light steel framing.
5 guides
Partnerships and investors
Most multiplex projects are built with more than one person's money. These guides explain how general and limited partners share the risk and the return.
3 guides
Learning and house hacking
Some owners start by living in one unit and renting out the rest. Others want the full discipline first. These guides cover both routes.
5 guides