CMHC MLI Select vs the Apartment Construction Loan Program
MLI Select and the Apartment Construction Loan Program (ACLP) are different CMHC tools that do different jobs, and most small-scale rental projects end up using both, in sequence, rather than choosing one over the other.
Side-by-side comparison
| Factor | Apartment Construction Loan Program | MLI Select |
|---|---|---|
| What it is | Construction loan | Permanent mortgage insurance |
| When you use it | During construction | Once the building is complete and leased |
| Minimum units | 5 | 5 (50 for retirement homes) |
| Loan/insurance amount | Min $1M, up to 100% of construction cost | Up to 95% loan-to-value |
| Qualification method | Purpose-built rental project criteria | 50-100 point scoring system |
| Program size | $55 billion federal program | Ongoing insurance program, no fixed pool |
How a small builder typically uses both
- Design for 5+ units and purpose-built rental. Both programs require this from the start; the project cannot be designed for strata sale and switched later.
- Apply for ACLP to fund construction. The loan disburses as the building goes up, at up to 100% of residential construction cost.
- Track MLI Select points during design. Energy efficiency, affordability, and accessibility choices made during design and construction determine the points score at completion.
- Refinance into MLI Select at completion. Once the building is complete and generating rent, apply for MLI Select-insured permanent financing to replace the construction loan.
Frequently asked questions
Is MLI Select the same thing as the Apartment Construction Loan Program?
No. MLI Select is mortgage loan insurance for the permanent mortgage on a completed rental building. The Apartment Construction Loan Program (ACLP) is a construction loan that funds the building phase before it is finished. They solve two different problems in the same project's timeline, which is why many small builders use both, one after the other, rather than choosing between them.
Which program should I apply for first?
ACLP first, if you need construction funding. It disburses money as the building goes up. Once construction is complete and the building is generating rent, you then apply for MLI Select-insured permanent financing to replace the construction loan with a long-term mortgage. Applying for MLI Select before the building exists does not make sense, since its underwriting is based partly on the completed property's rent roll.
Can a 4-unit multiplex use either program?
No. Both ACLP and MLI Select require a minimum of 5 rental units. A 4-unit multiplex uses CMHC's separate owner-occupied 1-to-4-unit mortgage loan insurance instead, which has its own down payment tiers and does not require the borrower experience or points-system requirements that MLI Select and ACLP both carry.
Does ACLP require the same points system as MLI Select?
No, they use different qualification methods. MLI Select uses a 50-to-100 point scoring system across energy efficiency, affordability, and accessibility to set amortization, premium discount, and loan-to-value. ACLP eligibility instead centres on being a purpose-built rental project of 5 or more units with the loan sized to construction cost, without MLI Select's specific point thresholds, though ACLP projects are frequently designed to also qualify for MLI Select once complete.
How much can ACLP lend toward construction?
ACLP loans start at a minimum of $1 million and can reach up to 100% of the residential construction cost of a purpose-built rental project. The program's total federal allocation is $55 billion, aimed at supporting more than 131,000 new rental homes across Canada by 2031 to 2032.
What happens if my project does not qualify for MLI Select after using ACLP?
The construction loan still needs to be repaid or refinanced at completion regardless of MLI Select eligibility. Without MLI Select, a 5-to-8-unit rental building refinances into conventional commercial lending instead: typically 75 to 80% loan-to-value and 25-year amortization at higher rates than an MLI Select-insured mortgage would offer.
Do both programs require the same borrower experience?
MLI Select explicitly requires at least five years of experience managing similar multi-unit residential properties, or a contract with a qualified third-party property manager, plus a net worth of at least 25% of the loan amount. ACLP's published eligibility criteria focus more on the project meeting purpose-built rental and unit-count requirements, though a lender underwriting the construction loan will still assess the borrower's capacity to complete the project.
Is one program better for a small BC builder doing their first multiplex?
For a first 5-to-8-unit rental project, the practical path is usually ACLP for construction funding, paired with a plan to qualify for MLI Select at completion, since MLI Select's borrower-experience requirement can be met through a contracted third-party property manager rather than personal track record. A first-time builder without that management contract in place should confirm eligibility for both programs before finalizing the project's unit count and construction budget.
Check your project's numbers
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