MLI Select financing
What 5% down on MLI Select really takes.
You can see 5% down in a lot of ads. It is real, for buildings that hit the right tier, and it is not the whole cash picture.
Who actually gets 5% down
Up to 95% financing is available on new construction from 50 points and on existing buildings from 70 points. A 50-year amortization needs 100 points. An existing building at 50 points gets 85% and 40 years, which means 15% down.
The cash on a $3M building
Five percent down is $150,000. Add about 2% in closing costs and the number is $210,000, before GST questions, appraisal, energy modelling and legal. Most of these costs depend on the file, so get them in writing early.
The premium
CMHC's premium is usually added to the loan, not paid in cash, but you pay interest on it. At high leverage and long amortization it often runs roughly 5% to 7% of the loan.
Net worth and cash
Lenders often look for net worth near 25% of the price and liquid cash near 10%. On $3M that is about $750,000 and $300,000, even if you put far less down. Your lender sets the real test.
Estimates only, not financial advice. Financing is subject to CMHC and lender approval. Program details are a summary of CMHC's published criteria as of October 2026 and may change. Rob Thomson is not a mortgage broker or lender.
Common questions
Can the premium be financed?
Usually, yes. It is typically added to the mortgage, which raises the payment.
Is full recourse required?
Limited recourse is generally reserved for the top tier. Below that, expect recourse to you. Confirm with your lender.
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