Which rental properties can be considered?
For a standard rental-housing project, CMHC specifies at least five units. Both existing properties and new construction can be considered. The property, borrower and proposed loan must also meet the applicable requirements; the unit count alone does not establish eligibility.
How MLI Select points affect financing
Commitments to affordability, energy efficiency and accessibility earn points. The published incentive levels begin at 50, 70 and 100 points, with different requirements for existing buildings and new construction. Owners can focus on one area or combine commitments.
The useful question is whether a commitment fits the building and its operating plan. Compare the financing benefit with the work, cost and continuing obligations required to achieve it.
Financing incentives and project assessment
The financing incentives can affect the amount a project can borrow, the loan’s repayment period, the property income required in relation to mortgage payments, and insurance costs. The applicable terms depend on the building and financing proposal.
A published feature or apparent points score does not confirm approval for the property, borrower or loan.
Affordability, energy efficiency and accessibility commitments
Affordability affects the rents and operating conditions for designated units. Energy-efficiency and accessibility commitments may need work, professional input and documentation. Some obligations continue after financing is arranged.
The cost and timing of any work belong in the project budget. Effects on rent belong in the income assessment. Those requirements need to be compared with the potential financing benefit.
Prepare the information behind the assessment
Bring the current rent roll and operating expenses, property details, existing financing and any proposed renovation or construction budget. Identify the affordability commitments or building improvements you are considering. Streetwise can then discuss the financing assessment and the specialist documentation that may be needed.
Review MLI Select alongside the building and project
Streetwise arranges Ontario multifamily financing for acquisitions, refinancing, renovation, repositioning and construction. We examine the property and planned work together, including whether MLI Select is worth assessing for that project.
Tell us whether you are buying, refinancing or building, which commitments you are considering and what information is available. Read about multifamily financing or contact Streetwise about the project.
Apartment-building financing
Plan funding from purchase to completed project.
The budget needs to cover the purchase, renovation or construction, and mortgage payments while the work is underway.
Acquire or refinance the building.
Assess the current income, expenses and financing alongside your contribution and the reason for borrowing.
Carry the property while work is underway.
Allow for the work’s budget and schedule, and the costs of owning the property before the completed work produces rental income.
Plan for the completed rental operation.
Examine the expected income, expenses and financing after completion, including the assumptions behind any planned refinance.
Expected improvements and a projected refinance are assumptions to assess. They should not be treated as funds already secured.
