Resources
Government Programs for Commercial Mortgages
Federal and provincial programs that can reduce your borrowing costs, increase your leverage, and support your commercial property investment.
Programs Overview
CMHC MLI Select
MLI Select is CMHC's flagship incentive program for multi-family residential properties. It rewards developers and building owners who commit to energy efficiency, affordability, or accessibility with reduced insurance premiums and enhanced financing terms.
Program Benefits
Energy Efficiency
Properties that achieve meaningful reductions in energy consumption and greenhouse gas emissions qualify for premium discounts. New buildings meeting specific energy performance targets and existing buildings undergoing energy retrofits both qualify. Greater reductions earn larger incentive tiers.
Affordability
Projects that provide a minimum percentage of units at rents below median market levels receive premium reductions. The deeper the affordability commitment - both in terms of the number of affordable units and the discount below market rent - the greater the incentive. Commitments are registered on title for the mortgage term.
Accessibility
Properties that exceed minimum building code requirements for accessibility qualify for additional incentives. This includes universal design features, barrier-free units, and modifications that support independent living for persons with disabilities. The number of accessible units determines the incentive tier.
CMHC Standard Multi-Family Insurance
Even without qualifying for MLI Select incentives, CMHC mortgage insurance offers significant advantages for multi-family borrowers seeking higher leverage and lower rates.
Max LTV
85%
Amortization
Up to 40 years
Min. Units
5+ residential
Term
Up to 10 years
How it works: CMHC insures the mortgage, which reduces the lender's risk and allows them to offer lower rates and higher leverage than conventional financing. The borrower pays an insurance premium that is typically added to the mortgage balance, eliminating the need for additional upfront capital. Properties must meet CMHC underwriting standards for income, condition, and borrower qualifications.
Canada Small Business Financing Program (CSBFP)
The CSBFP helps small businesses access financing for real property, equipment, and leasehold improvements that they might not otherwise obtain through conventional channels.
Real Property Loans
Up to $1,000,000 for purchasing or improving commercial real estate used by the business. Amortization up to 15 years. Available through participating banks and credit unions.
Eligibility Requirements
The business must be a for-profit enterprise operating in Canada with gross annual revenues of $10 million or less. Most industries qualify, with some exceptions including farming, charitable organizations, and religious institutions.
Government Guarantee
The federal government guarantees up to 85% of the loan, which reduces the lender's risk and makes it easier for small businesses to qualify. The guarantee does not replace the borrower's obligation to repay the full loan amount.
Registration & Fees
A one-time registration fee of 2% of the loan amount is charged at funding and can be added to the loan balance. Annual administration fees of 1.25% of the outstanding balance are also charged. Interest rates are capped at prime plus 3% for variable rate loans.
Provincial Programs Overview
Several provinces offer their own programs that can complement federal financing. Programs vary by region and change frequently, so we recommend consulting with our team for the most current options in your province.
Ontario
Ontario Infrastructure Bank financing for affordable housing projects, development charge deferrals for purpose-built rentals, and municipal incentive programs in major cities including Toronto, Ottawa, and Hamilton.
Alberta
Alberta Affordable Housing Partnership programs, municipal tax incentives for downtown revitalization, and provincial grants for energy-efficient commercial building upgrades in targeted sectors.
Manitoba
Manitoba Housing Renewal Corporation programs, downtown revitalization incentives in Winnipeg, and tax increment financing for commercial developments in designated growth areas.
Frequently Asked Questions
CMHC MLI Select is available to borrowers financing multi-family residential properties with five or more units. The property must meet at least one of the program's criteria for energy efficiency, accessibility, or affordability. New construction and existing properties both qualify, and the borrower must work with a CMHC-approved lender to submit the application.
CMHC mortgage insurance premiums typically range from 1.50% to 4.50% of the loan amount, depending on the LTV ratio, amortization period, and whether MLI Select incentives apply. The premium is usually added to the mortgage balance, meaning no additional upfront cash is required. The premium is a one-time cost paid at funding.
Yes, the CSBFP covers the purchase or improvement of real property used for business purposes. The maximum loan for real property is $1,000,000. The property must be used by the business, and the borrower must be a for-profit enterprise operating in Canada with gross annual revenues of $10 million or less.
CMHC programs are limited to multi-family residential properties. However, the Canada Small Business Financing Program covers commercial real estate for small businesses across all property types. Provincial programs vary by region and may offer grants, tax incentives, or reduced-rate financing for commercial development in targeted sectors or areas.
Want Help Accessing Government Programs?
Our team can identify which programs apply to your property and handle the application process on your behalf.