With almost one third of Canadian households renting their homes, preserving existing rental stock and increasing rental supply have never been more important to building healthy communities in Canada. With this considered, Canada Mortgage and Housing Corporation (CMHC) recently announced the launch of its latest Multi-Unit Mortgage Loan Insurance product, MLI SELECT.
MLI SELECT is an innovative multi-unit mortgage loan insurance product that incentivizes the preservation and creation of rental supply while also addressing the need for affordable, accessible and climate compatible housing. MLI Select uses a point system to rate a rental housing provider’s commitment to affordability, accessibility, climate compatibility or a combination of the three. The greater the social and environmental outcomes of a rental housing property, the broader the incentives are, including lower insurance premiums and longer amortization rates. Incentives will be available for both new construction and existing properties.
One of the key new aspects of MLI SELECT is basing affordability qualifications on median renter household income, for both existing and new properties. With median renter household income being considerably less than overall median household income, MLI SELECT aims to stimulate the preservation and creation of affordable rental housing for all Canadians.
“As Canada’s only provider of multi-unit mortgage insurance for residential properties, we believe that MLI SELECT will be a critical component to achieving better housing outcomes for renter households,” said Romy Bowers, President and CEO of CMHC. “Increasing rental supply and preserving existing rental stock will offer more affordable options for renters, including those in Core Housing Need, getting us closer to our aspiration of by 2030, everyone in Canada has a home they can afford and that meets their needs.”
CMHC is encouraging all rental housing providers in Canada to reach out to a CMHC Housing Specialist in your region and learn more about how MLI SELECT can work with your existing or upcoming projects.