MLI Standard

Market Rental — the foundational CMHC insurance product.

MLI Standard is CMHC's baseline multi-unit insurance product for properties with five or more self-contained rental units. It covers purchase, refinance, and new construction at market rents with no affordability commitment required — making it the default starting point for for-profit rental investors who don't want to take on MLI Select's scoring obligations.

Non-residential space is capped at 30% of gross floor area and gross rental income. A 1.00% premium surcharge applies to the non-residential portion. Maximum LTV is 85% across all transaction types. Amortization reaches 50 years for new construction (extended June 2024) and 40 years for existing rental refinance or purchase.

Premiums were restructured on July 14, 2025 into an LTV-tiered grid (replacing earlier flat rates). That grid is shown in full below and is the same underlying schedule MLI Select now uses before applying its tier-based discount.

Key parameters

Underwriting at a glance.

The core MLI Standard underwriting parameters. Minimum DCR varies by unit count, transaction type, and term length.

Minimum units
5 self-contained
Non-residential cap
≤30% of gross floor area / gross rental income
Max LTV
85% (purchase / refi / construction)
Max amortization — new
50 years
Max amortization — existing
40 years
Borrower net worth
≥25% of loan amount, minimum $100,000
Management experience
5+ years multi-residential
Construction guarantee
100% during build → 40% post-stabilization
Purchase / refi guarantee
40% personal guarantee

Minimum Debt Coverage Ratio

CMHC sizes loans on the lower of LTV and DCR. Minimum DCR varies by property segment and transaction type.

Segment Minimum DCR
7+ units, term ≥10yr 1.20
7+ units, term <10yr 1.30
5–6 units, purchase 1.10
5–6 units, refinance 1.20
Effective July 14, 2025

The LTV-tiered premium grid.

On July 14, 2025 CMHC replaced flat MLI Standard premiums with a risk-based LTV-tiered grid. Purchase and refinance use one schedule; new construction sits one tier higher to reflect build-out risk. Premiums below assume EGI was met.

Purchase / Refinance
MLI Standard — existing rental
LTV Band Premium
≤65% 2.60%
≤70% 2.85%
≤75% 3.35%
≤80% 4.35%
≤85% 5.35%
Construction
MLI Standard — new construction
LTV Band Premium
≤65% 3.25%
≤70% 3.75%
≤75% 4.25%
≤80% 5.00%
≤85% 6.00%

Premium surcharges

Surcharges stack on top of the LTV-band premium.

Extended amortization
+0.25%

Per 5 years beyond 25-year amortization.

Non-residential portion
+1.00%

Applied pro-rata to the non-residential share of the loan.

Second mortgage
+0.50%

Applied where CMHC-insured second financing is in place.

EGI not met
+0.25%

Applied when effective gross income falls short of the underwritten figure at stabilization.

Premium credit

Refinancing an already-insured loan.

When refinancing a loan that already carries CMHC insurance, the borrower receives a premium credit against the new premium. The credit is highest (75%) in year 1 after the original insurance was put in place and declines each year thereafter, leveling at 20% from year 7 onward.

The credit is applied to the new premium owing — it does not reduce the loan amount or refund the original premium.

Years since insured Premium credit
Year 1 75%
Year 2 60%
Year 3 50%
Year 4 40%
Year 5 35%
Year 6 25%
Year 7+ 20%

Compute the full MLI Standard premium.

The premium calculator applies the July 2025 LTV-tiered grid, all applicable surcharges, and (where relevant) the refinance credit. Use the loan sizer to triple-constrain against DCR and LTV.