December 2025 — CMHC MLI Select Changes You Need to Know
A new advice was recently issued by CMHC with updates to the MLI Select program, effective immediately.
Below are key highlights on the changes and how Peakhill provides value as one of the most active CMHC insured lenders.
| CMHC Changes | Key Takeaways |
|---|---|
| 1 | Documentation |
CMHC will be asking for documentation to support renovation costs.
For our clients keeping an eye out for value add opportunities, it will be important to document well all expenditures to ensure full credit to the renovations can be accessed. |
| 2 | Market / Feasibility Study |
A market or feasibility study will be required for large existing
properties undergoing substantial changes or conversions and non-stabilized
student housing.
While it adds a step, we hope that this will help predictability in loan proceeds to assist clients in their planning. |
| 3 | New Construction MLI Select Energy Efficiency Projects |
For new construction files looking to get energy efficiency points for
MLI Select, it is important to note that CMHC will be referencing the
2020 standard for the each of National Energy Code for Buildings
(NECB) and National Building Code (NBC).
This will not come into effect until September 30, 2026 to allow projects already underway to access MLI Select as planned, but new developments should bear this change in mind. |
| 4 | ESA Considerations |
• Age of report and minimum insurance requirements have been more clearly defined.
All ESA assessors should carry minimum $1M liability, and reports must be recent.
• Where Phase II or risk management agreements are in place, extra time should be planned for CMHC to review and approve reports prior to first advance of funds. |
| 5 | Rental Achievements |
Changes to MLI Select underwriting guidelines on rental achievements
of applications at 95% LTV and higher include:
• Standard rental housing (SRH) with DSCR < 1.20x: Advances restricted to 85% LTV or LTC, whichever amount is lower. • All other shelter models with DSCR < 1.30x: Advances restricted to 80% LTV or LTC, whichever amount is lower. |
Peakhill is committed to supporting our clients at every stage. With an industry-leading CMHC financing platform, we help you move quickly when it matters.
Please reach out to our team of experienced financing professionals for any inquiries.
