New CMHC MLI Select rule clarifications are blindsiding small Ontario multifamily investors who thought their affordable rental projects were safely funded for years

New CMHC MLI Select rule clarifications are blindsiding small Ontario multifamily investors who thought their affordable rental projects were safely funded for years

Multifamily & Commercial Financing, Done Right. CMHC MLI Select, private & commercial mortgage financing – Ontario.

CMHC’s MLI Select program was sold as a game changer for long-amortization, high-leverage financing tied to affordability, energy efficiency, and accessibility, so many small Ontario investors planned projects around it. Then came “clarifications” like the requirement for at least five units on the same lot, tighter documentation, higher DSCR thresholds for maximum leverage, and upcoming energy-efficiency criteria changes that are putting some projects in limbo. I am hearing from builders and investors who already spent time and money based on prior interpretations, only to be told their deals now need more equity, different designs, or completely new capital stacks. As a commercial mortgage broker working daily with CMHC and alternative lenders, I help investors rework their financing, explore non-CMHC options, and protect project viability so their affordable housing plans still pencil out.

Source: https://www.mpamag.com/ca/specialty/commercial/cmhcs-mortgage-rule-change-leaves-builders-and-investors-in-limbo/527449

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