MLI Select vs Conventional mortgage - actual example

Описание: If you’re building a purpose built rental property in Ontario, the way you finance it will determine whether the project works or not. The numbers for residential real estate are super tight and every dollar in interest payments is so important.

In this video, I walk through a real life example using actual numbers to compare CMHC MLI Select financing versus conventional multifamily construction financing in Canada.

I’ve tried to break down (estimates and educated guesses):

• Total project cost
• Down payment requirements
• Loan-to-value differences
• Interest rate assumptions
• Amortization differences (up to 50 years under MLI Select)
• Monthly cash flow comparison
• Long-term equity growth

The difference is not small. In most properly structured purpose-built rental projects, CMHC MLI Select financing dramatically improves leverage, cash flow stability, and long-term returns compared to conventional lending. I can’t believe I didn’t go into the debt coverage ratios (DCR) at all. I mention the CMHC loan to value issues we’ve had in the past and then failed to talk about DCR’s. Sorry.

If you are building anything 5 units or more (including stacked townhomes or small apartment building) in Ontario, understanding how MLI Select works is critical.

As a custom builder and development partner at Kingwell Fine Homes, we work directly with investors to:

• Design projects that qualify for CMHC MLI Select
• Maximize energy efficiency scoring
• Improve affordability scoring
• Structure purpose-built rentals properly
• Coordinate construction and financing strategy from day one

MLI Select is not just a mortgage product — it is a strategic development tool.

If you are considering building a rental property in Ontario and want to understand whether CMHC MLI Select financing makes sense for your numbers, this video will walk you through a real comparison.

If you’d like help structuring your project:

Visit: https://kingwellhomes.com
Or book a consultation to discuss your build strategy.

#MLISelect
#OntarioRealEstate
#PurposeBuiltRental