CMHC Insured Commercial Mortgages

CMHC mortgage loan insurance is available for multi-unit residential properties with 5 or more self-contained units where a minimum of 50% of total revenue comes from residential sources. Eligible property types include standard apartment buildings, purpose-built rental developments, retirement residences, care facilities, student housing, and affordable housing projects. The property must be located in Canada and meet CMHC minimum property standards.

The CMHC insurance premium is a one-time fee calculated as a percentage of the loan amount, typically ranging from 1.00% to 4.50% depending on the loan-to-value ratio, amortization period, and property type. The premium can be added to the mortgage balance in most cases, so it does not require an additional upfront cash outlay. Despite the premium cost, the resulting interest rate savings and higher leverage typically make CMHC insurance highly advantageous over the life of the mortgage.

MLI Select is CMHC's points-based incentive program that rewards properties meeting affordability, accessibility, and climate compatibility criteria. Properties earning enough points can qualify for enhanced benefits including reduced insurance premiums, longer amortization periods up to 50 years, and higher loan-to-value ratios. If your project incorporates energy efficiency measures, accessible design, or below-market rental units, MLI Select can meaningfully improve your financing terms.

CMHC reviews typically take 4 to 8 weeks from submission of a complete application, though timelines can vary based on application volume and deal complexity. The key to a fast approval is submitting a thorough, well-organized application package. We prepare every CMHC file to meet their specific documentation standards, which minimizes back-and-forth and keeps the process on track. For new construction projects, we recommend starting the CMHC application during the planning phase.

Yes. CMHC insurance is available for refinancing existing multi-unit residential mortgages, not just purchases. This is particularly valuable for borrowers who originally financed at a lower LTV and now want to access equity at CMHC-insured rates. The property must meet all standard CMHC eligibility criteria and the proceeds can be used for any purpose including property improvements, portfolio expansion, or debt restructuring.