MINIMUM DOCUMENTATION REQUIREMENTS
CMHC is clarifying expectations regarding the minimum documentation required at the time of application submission. This includes an expanded definition of the term “documentation” to better capture the scope and type of documentation submitted, a more simplified structure that provides clearer policy language, improved distinction of the documentation required at the application stage versus the advancing stage, and the removal of requirements deemed duplicative or no longer necessary within the loan, borrower, property, and market categories.
The Handbook for CMHC Approved Lenders Part 2: Insurance Initiation (sections 2.2, 2.3, 5.4, 9.1 and 9.2) will be updated to reflect the changes.
IMPLEMENTATION AND EFFECTIVE DATE
The changes will be effective immediately and will apply to applications submitted on or after November 28, 2025.
COMPLETION TAKE-OUT FINANCING
Completion take-out financing is available for properties that are substantially completed but have not achieved effective gross income and/or stabilized rents for a period of 12 consecutive months. Given the need to mitigate construction risk and to ensure consistency Updates to CMHC Multi-Unit Mortgage Loan Insurance Highlights in the assessment of applications, it is important that new construction policies specific to completion take-out loans be more clearly defined.
CMHC is clarifying its advancing policies regarding completion take-out loans, as well as eligible loan purposes, which include the payout of a construction financing loan, reimbursement of self-funded construction costs, or purchase of a newly constructed building. In all cases, advancing must occur within six months of CMHC approval.
The Handbook for CMHC Approved Lenders Part 2: Insurance Initiation (sections 2.5 and 3.2) will be updated to reflect the changes.
IMPLEMENTATION AND EFFECTIVE DATE
The changes will be effective immediately and will apply to completion take-out applications submitted on or after November 28, 2025.
MLI SELECT ENERGY EFFICIENCY CRITERIA
For the MLI Select product, energy efficiency commitments for new construction applications are assessed against the National Building Code (NBC) and National Energy Code of Canada for Buildings (NECB). Over time, these industry standards evolved to introduce multiple tiers of energy performance within each building category based on size and type: NBC Part 9 for smaller buildings, and NECB Part 3 for larger, more complex buildings. Given recent adoption of the 2020 NBC and 2020 NECB by most provinces and territories, and to ensure maximized energy efficiency outcomes, it is important that the most recent standards be reflected within CMHC policies.
CMHC is updating the MLI Select energy efficiency qualifying criteria applicable to new construction to incorporate the 2020 NECB and 2020 NBC, as follows:
| Level 1 | Level 2 | Level 3 |
|---|---|---|
| New Construction – 2020 NECB All buildings under Part 3 | ||
|
Min 25% better than NECB Tier 1 20 points |
Min 50% better than NECB Tier 1 35 points |
Min 60% better than NECB Tier 1 50 points |
| New Construction – 2020 NBC Low-rise buildings under Part 9 | ||
|
Min 20% better than NBC Tier 1 20 points |
Min 40% better than NBC Tier 1 35 points |
Min 70% better than NBC Tier 1 50 points |
The Handbook for CMHC Approved Lenders Part 2: Insurance Initiation (sections 8.1 and 8.6) will be updated to reflect the changes. Note that there are no changes to the current energy efficiency qualifying criteria for existing properties.
IMPLEMENTATION AND EFFECTIVE DATE
While the policy changes will be reflected as of November 28, 2025, a transition period will be in effect to accommodate qualification under the prior criteria until September 30, 2026.
RENTAL ACHIEVEMENT HOLDBACKS
CMHC is establishing the following policy requirements to clarify when a rental achievement holdback will be applied to MLI Select new construction applications, based on loan characteristics and shelter model:
| All New Construction (Construction Financing/Completion Take-Out) |
Rental Achievement Holdback Trigger Conditions |
Holdback |
|---|---|---|
| Standard Rental Housing | LTV > 95% and DCR < 1.2 | Difference between maximum loan amount and 85% LTC or LTV, whichever is lower |
| All Other Shelter Models | LTV > 95% and DCR < 1.3 | Difference between maximum loan amount and 80% LTC or LTV, whichever is lower |
The Handbook for CMHC Approved Lenders Part 2: Insurance Initiation (sections 3.2, 8.2, 8.4, 8.5, 9.1, 9.2, 9.3 and 9.4) will be updated to reflect the changes.
IMPLEMENTATION AND EFFECTIVE DATE
The changes will be effective immediately and will apply to MLI Select applications submitted on or after November 28, 2025.
For more information contact your CMLS Origination expert today.
We invite you to learn more and to ask how we can be of service to you.
