If you’re planning to finance a multifamily property with CMHC, you’re going to want to pay attention.
As of July 14, 2025, CMHC officially increased their insurance premiums for multi-unit residential financing. It’s being framed as a “routine update,” but for investors—especially those relying on high-leverage or long amortizations—this is a cost increase, plain and simple.
So what does this mean if you’re trying to lock up your next 6-plex or move forward with a purpose-built rental?
Let’s break it down in real terms: what changed, who’s getting hit the hardest, and what you can do to work around it.
First—Yes, Premiums Are Going Up
For a long time, CMHC has been the go-to for investors who wanted higher leverage (think 85–95% LTV) and longer amortizations (up to 40 years). That kind of flexibility came at a cost—but now, that cost just got a whole lot higher.
Here’s a look at the new CMHC premium rates for standard rental housing (5+ units):
| Loan-to-Value (LTV) | Construction | Other Purposes |
| 65% or less | 3.25% | 2.60% |
| Up to 70% | 3.75% | 2.85% |
| Up to 75% | 4.25% | 3.35% |
| Up to 80% | 5.00% | 4.35% |
| Up to 85% | 6.00% | 5.35% |
| Up to 90% (MLI Select only) | 6.75% | 5.90% |
| Over 90% (MLI Select only) | 7.00% | 6.15% |
These apply whether you’re using the standard CMHC program or MLI Select—it’s one unified premium chart now.
The biggest changes are showing up in the higher LTV bands. If you’re borrowing 85% or more, you’re looking at 0.6%–1.0% more in premiums compared to the previous grid. On a $1M mortgage, that’s a difference of $6,000 to $10,000 (or more) that gets added straight onto your loan.
But That’s Not All: Say Hello to Surcharges
The base premiums are only part of the story. CMHC is also layering on some new surcharges that could catch investors off guard.
Here’s what else could be added to your deal:
- Extended amortization: If you go beyond 25 years, you’ll pay an extra 0.25% for every 5 years. That’s 0.75% added for a 40-year amortization.
- Unstabilized income: If your property isn’t stabilized (meaning, full rent roll and operating income) at first advance, you’ll pay another 0.25%.
- Mixed-use buildings: If your property includes commercial space, there’s a 1.00% premium bump for that.
- Second mortgage involved? Add 0.50% more to your primary loan’s premium.
Bottom line: depending on how your deal is structured, you could be paying significantly more than just the base rate.
Let’s Talk Real Numbers
Sometimes percentages don’t hit home until you see the actual dollars. So let’s run through a few scenarios.
Example 1: Vanilla Deal – 75% LTV, 25-Year Amortization
- Premium: 3.35%
- Loan: $1,000,000
- Premium cost: $33,500 (rolled into the mortgage)
Simple deal, fairly affordable CMHC coverage.
Example 2: High-Leverage Construction Deal – 90% LTV, 40-Year Amortization
- Base Premium (Construction): 6.75%
- Extended Amortization Surcharge (40 years): +0.75%
- Unstabilized Income Surcharge: +0.25%
- Total Premium: 7.75%
- Loan: $1,000,000
- Premium cost: $77,500
That’s over $44,000 more than the 75% LTV deal above. Same loan size, completely different insurance cost—and that extra amount gets capitalized into your mortgage, affecting your debt service and your cash flow.
Is There Any Relief? (Yes, but You’ll Have to Work for It)
If you’re using MLI Select, you can still reduce your premium—but now, you have to earn it.
CMHC has introduced a points-based system where you can receive a discount of up to 30% on your total premium if your project meets certain thresholds in affordability, energy efficiency, and accessibility.
Here’s how it breaks down:
- 50 points = 10% discount
- 70 points = 20% discount
- 100 points = 30% discount
You’ll need to plan early and intentionally for this. Think deeply affordable units, net-zero construction, or accessibility features built into the design. This isn’t something you can slap on after you’ve already designed the building.
Why CMHC Is Doing This
This isn’t just a money grab.
Behind the scenes, CMHC is trying to stay compliant with new regulatory capital rules (known as MICAT). Basically, for riskier loans—like high-LTV, long amortization, or unstabilized buildings—they’re now required to set aside more capital.
Rather than pull back on those products, they’ve decided to price in the risk. You can still get 90% LTV and 40-year amortizations—they’re just going to cost more now. And to be fair, that’s still better than being told those programs are no longer available at all.
Who This Hits the Hardest
- Developers building new projects with extended amortizations
- Buy-and-hold investors trying to maximize leverage with high LTV
- Value-add buyers with repositioning projects that won’t stabilize quickly
- Anyone who doesn’t plan for MLI Select properly and misses out on the discount
If you’ve relied on CMHC to help make the numbers work—and haven’t updated your underwriting yet—this could change the viability of your deal.
What You Should Be Doing Right Now
If you’re planning a CMHC-insured deal—or already working on one—now is the time to adjust.
Here’s what you can do:
- Update your proformas
Plug in the new premiums and surcharges. What worked last month might not work anymore. - Map out your MLI Select points early
Don’t count on a discount unless you know how you’re earning it. Build affordability, energy, or accessibility targets right into the project design. - Rethink amortization length
If you can make a 30- or 35-year term work, you’ll save 0.25–0.50% in premium costs. That can be significant on a $1M+ loan. - Compare financing options
Depending on your situation, a shorter-term, conventional loan might end up being more cost-effective than a CMHC-insured deal with all the add-ons.
Final Thoughts
CMHC’s latest update is a good reminder that even “small” shifts in policy can make a real difference to your numbers.
This isn’t about doom and gloom—it’s about being aware and adapting. CMHC is still offering tools to support multifamily housing, but they’re shifting the cost based on risk. If you want access to higher leverage and longer terms, it’s going to come at a price. The good news? You can still work around it if you plan ahead.
So whether you’re buying, building, or refinancing, take the time to understand how this affects your project—and don’t get caught off guard.
For the full breakdown from CMHC, check out their updated Fees & Premiums chart here.
Have questions? Need help running numbers under the new structure? Reach out to our Trusted Partners to help you figure out your option. Financing Trusted Partners.
