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MLI Select premium: an illustrative calculation

CMHC publishes no worked premium example for 5+ unit loans, so this page builds one from CMHC’s published schedule: add the base premium and any surcharges, then take the MLI Select discount off the total. The cases are this site’s arithmetic on a round $1,000,000 loan. They are illustrations, not quotes and not CMHC figures.

Illustrative only. Inputs are assumptions, not quotes. Premium rates are from CMHC’s published multi-unit premium schedule, checked Oct 15, 2026; actual premiums, rates, loan amounts and eligibility are determined by CMHC and the lender. Rents and income are not guaranteed.

Does CMHC publish an example?

No. Nothing on CMHC’s multi-unit pages or PDFs works a premium through step by step. The closest CMHC illustration is a savings comparison; it gives no premium amount.

CMHC’s only multi-unit illustration is a savings comparison, not a premium: “Based on a sample $15.6M, 48-unit new construction loan insured under MLI Select, a borrower would still see a savings of approximately 12% on their monthly mortgage payment compared to a conventional mortgage loan. The same borrower would also save $3M on their down payment requirements.”CMHC premium noticeJuly 3, 2025(opens official source in a new tab)

CMHC’s online premium calculator is for homeowner loans and notes it covers “homes priced below $1,500,000”, so it does not price 5+ unit loans.CMHC premium calculatoras of Oct 15, 2026(opens official source in a new tab)

Inputs from CMHC’s schedule

Inputs taken from CMHC’s multi-unit premium schedule. Source:CMHC fees and premiumsas of Oct 15, 2026(opens official source in a new tab)
InputCMHC figure
Base premium, standard rental, loan-to-value above 90%7.00% for construction financing; 6.15% for all other loan purposes
Base premium, standard rental, loan-to-value up to and including 85%6.00% for construction financing; 5.35% for all other loan purposes
Extended amortization surcharge0.25% for every five-year period beyond the 25-year standard
Effective gross income not met at first advance0.25% (not applicable for construction financing)
MLI Select discount10% at 50 points, 20% at 70 points, 30% at 100 points, applied to the base premium plus any surcharges

The premium is an up-front charge, a percentage of the loan; it may be added to the mortgage and is non-refundable. Provincial tax cannot be added to the insured loan amount.CMHC fees and premiumsas of Oct 15, 2026(opens official source in a new tab)

The illustrative calculation

Premium rate = (base premium + surcharges) × (1 − discount). Premium in dollars = rate × loan amount. The loan amount below is a round number chosen for the arithmetic; it is not a deal.

Illustrative premium arithmetic per $1,000,000 of insured loan (this site’s calculation, not a CMHC figure). Source:CMHC fees and premiumsas of Oct 15, 2026(opens official source in a new tab)
CaseBaseSurchargesDiscountPremium ratePremium per $1,000,000
A. Non-construction loan, loan-to-value above 90%, 50-year amortization, 100 points6.15%1.25%30%5.18%$51,800
B. Construction financing, loan-to-value above 90%, 50-year amortization, 100 points7.00%1.25%30%5.775%$57,750
C. Non-construction loan, loan-to-value up to 85%, 40-year amortization, 50 points5.35%0.75%10%5.49%$54,900
D. Case A, and effective gross income not met at first advance6.15%1.50%30%5.355%$53,550
Premium rate = (base + surcharges) × (1 − discount). Surcharges: 50 years is five periods beyond 25 years (5 × 0.25% = 1.25%); 40 years is three (0.75%); case D adds the 0.25% income surcharge.

Reading across: case A and case B differ only by the higher base premium on construction financing. Case D shows that an unmet effective gross income surcharge is also discounted, because CMHC applies the MLI Select discount “to the base premium plus any applicable surcharges”.CMHC fees and premiumsas of Oct 15, 2026(opens official source in a new tab)

Points to confirm with a lender

Verify: Three things CMHC’s public documents do not settle, so the cases above do not assume an answer for a specific loan: (1) whether a completion take-out is priced in the “All other loan purposes” column or the construction financing column; (2) whether the loan-to-value band is set before or after the premium is added to the loan; (3) how provincial sales tax on the premium is handled. CMHC says provincial tax cannot be added to the insured loan amount.

Read the rest of the premium and fee schedule on the MLI Select explainer, and the glossary entry for premium.