Why the 5-unit threshold matters so much
MLI Select is designed as an incentive product for affordable rental housing at meaningful scale. CMHC set 5 units as the minimum to focus program benefits on genuine multi-family development. Below 5 units, projects use conventional CMHC insurance with standard terms, materially reducing the leverage available to the sponsor.
What if I add a secondary suite to reach 5 units?
MLI Select counts units in the same building on the same lot. Whether secondary suites count toward the 5-unit threshold depends on CMHC's specific interpretation for the project type and configuration. Confirm with a CMHC-approved lender before relying on this path. Designing the building as a native 5-plex from the start avoids the ambiguity and typically produces better outcomes.
What are the alternatives for a Calgary 4-plex?
- Conventional CMHC multi-unit insurance (80 percent LTC, 25 to 35 year amortisation, standard premium).
- Commercial mortgage (non-CMHC): 65 to 75 percent LTC, 20 to 25 year amortisation, rates 50 to 150 basis points higher than CMHC-insured.
- Owner-occupied residential mortgage (up to 4 units) with insured high-ratio if the sponsor lives in one unit.
When is a 5-plex build the right call over a 4-plex?
Almost always, where the lot physically supports 5 units within FAR and height limits. On a typical Calgary R-CG lot pre-August 2026, the marginal cost of one additional unit is a small fraction of the financing benefit MLI Select delivers. Post-August 2026 (after Calgary's blanket rezoning repeal), fewer lots support 5-plus units by right, so focus MLI Select project sourcing on parcels already zoned R-G, M-1, or M-2, or on rezoning applications where the discretionary approval has been secured.