CMHC Updates MLI Select Premium Structure for July 2025

What Changed on July 14, 2025

CMHC overhauled its mortgage insurance premium structure effective July 14, 2025 — the most significant change to multi-unit premiums in years. The new framework replaces the previous flat-rate premium tables with a risk-based grid that varies by shelter type, loan purpose, and LTV band.

The bottom line: premiums went up for most deals, but the MLI Select discount became more valuable than ever.

The New Premium Grid

The restructured grid now differentiates premiums across three dimensions:

By shelter type:

• Standard rental housing (the majority of MLI Select deals)
• Other shelter types (seniors, student housing, mixed-use)

By loan purpose:

• Construction and new development
• Purchase and refinance
• Completion takeout

By LTV band:

• Premiums increase in 5% increments from 75% to 95% LTV
• Higher LTV = higher premium (reflecting greater risk)

For a standard rental purchase at 85% LTV, the base premium is now approximately 4.50%. At 95% LTV (the MLI Select maximum), it's roughly 6.75%.

Surcharges: How They Stack

On top of the base premium, CMHC applies surcharges for specific deal characteristics:

• Extended amortization: +0.25% for every 5 years beyond 25 years. At 50-year amortization (the MLI Select maximum), that's +1.25%.
• Non-residential space: +1.00% if more than 30% of the building is commercial or non-residential.
• Second mortgage: +0.50% if subordinate financing is in place.
• EGI not met at first advance: +0.25% if effective gross income isn't achieved at the first mortgage advance (common in construction).

These surcharges are additive. A 95% LTV, 50-year amortization deal with a second mortgage could see surcharges totalling 1.75% on top of the base premium.

The MLI Select Discount

Here's where scoring well pays off. MLI Select offers tiered premium discounts based on your project's points:

| Points | Discount | |--------|----------| | 50-69 | 10% off | | 70-99 | 20% off | | 100 | 30% off |

On a $10M loan with a 7% gross premium, the 100-point discount saves over $200,000 in insurance costs. That's real money that flows directly to your bottom line.

What This Means for Your Next Deal

The premium increase makes two things clear:

1. Scoring higher matters more than ever. The 30% discount at 100 points is the single biggest lever you have to reduce insurance costs.

2. The cost-benefit analysis of affordability commitments has shifted. The rent discount you give up for affordability points is increasingly offset by premium savings.

Use our Premium Estimator to model your specific deal under the new structure, and our Score Calculator to find the scoring path that maximizes your discount.

Strategy: Offsetting Higher Premiums

Several strategies can help manage the new premium reality:

• Maximize your MLI Select score to unlock the 30% discount tier
• Consider a lower LTV if your equity position allows — dropping from 95% to 85% LTV can reduce base premiums by 2%+
• Time your application strategically — construction premiums differ from purchase/refi premiums
• Budget for premiums explicitly in your pro forma rather than treating them as an afterthought

For a deeper dive into the full premium framework, read our Premium Changes 2025 guide.

Need Help Modelling Your Deal?

The premium restructuring affects every deal differently. Our team can help you model the exact impact on your project and identify the optimal scoring strategy to minimize your insurance costs.

Book a free consultation to get a personalized premium analysis.