Side-by-side comparison
| Conventional | MLI Select (70-pt example) | |
|---|---|---|
| Max LTV | ~75% | 90% |
| Amortization | 25 years | 45 years |
| Premium discount | None | 20% |
| Points system | None | Required |
| DSCR minimum | Typically 1.10–1.20× | 1.10× |
| Documentation burden | Standard | Higher — requires energy modelling, rent commitments, or accessibility certification |
When MLI Select is the better fit
MLI Select's extra leverage and longer amortization matter most on deals where cash flow is the binding constraint — a longer amortization directly lowers the monthly payment, which can be the difference between a deal clearing CMHC's 1.10× DSCR minimum or falling short. It's also the better fit for investors already planning energy-efficient construction or willing to commit a share of units to below-market rents, since the points are earned from decisions the project may already be making.
When conventional financing is the better fit
Not every deal benefits from more leverage. On a property with a thin cap rate relative to the cost of debt, taking on more leverage through MLI Select's higher LTV can actually hurt cash flow rather than help it — a case of negative leverage, where the cost of the extra borrowed dollar exceeds what it earns. Conventional financing's simpler approval process and lower documentation burden can also be the more practical choice for investors who don't want to commit to multi-year affordability or energy obligations tied to the property.
The real test: run both scenarios
Since the right choice depends on the specific deal's cap rate and cost of debt, not just the program's headline terms, the only reliable way to decide is to model both financing structures against the same property and compare the resulting DSCR and cash flow directly.
Check your own deal's MLI Select tier in under a minute. CapShark scores your points, tests your DSCR against the 1.10× minimum, and previews forward cash flow. The full 30-year lender package is paid.
Compare Your Deal With MLI Select