Size the same deal under each financing format, see which constraint binds, what cash it takes to close, and how long each takes to pay that cash back. Formats are editable and new ones can be added as programs change.
Where a line crosses zero, the cash invested at closing has come back through cash flow and principal paydown. Excludes appreciation and sale costs; assumes renewal at the same rate after the term.
Every format runs through the same engine. The loan is the lesser of the LTV cap on lending value and the loan the NOI can carry at the format's debt-coverage floor. For insured formats the premium is added to the loan and the coverage test is run on the total, so the premium and the loan size are solved together.
Payments use Canadian semi-annual compounding: monthly rate = (1 + annual rate ÷ 2)1/6 − 1.
Insured premiums come from each format's LTV grid, plus the amortization surcharge for every 5 years beyond 25, less any MLI Select points discount. Application fees are per suite and paid in cash.
| Metric | Definition |
|---|---|
| Cash in at close | Price + closing costs + lender fee + insurer application fee + premium tax − loan advanced (premium is financed) |
| Cash payback | Years until cumulative cash flow after debt service equals the cash in |
| Payback incl. paydown | Years until cumulative cash flow plus principal repaid equals the cash in |
| Premium payback, same loan | If you borrowed only the conventional loan amount through this format, the insurance cost divided by the yearly debt-service saving from the lower rate and longer amortization |
| Return on cash, horizon | (Cumulative cash flow + principal paydown) ÷ cash in, over the chart horizon |
Conventional. 70% LTV, 25-year amortization, 1.25 DCR. Typical of ATB, credit unions and other Alberta balance-sheet lenders; terms vary by lender and borrower.
CMHC Standard Rental (MLI Market). Up to 85% LTV on purchase, 40-year amortization, 1.10 DCR. Premium grid from the schedule effective for applications from July 14, 2025: 2.60% to 65% LTV, 2.85% to 70%, 3.35% to 75%, 4.35% to 80%, 5.35% to 85%, plus 0.25% per 5 years of amortization beyond 25.
CMHC MLI Select 50 / 70 / 100. Same base grid extended to 5.90% (to 90%) and 6.15% (above 90%), with 10% / 20% / 30% premium discounts by points tier. Default LTV and amortization by tier (85%/40, 95%/45, 95%/50) follow the new-construction pattern; existing-building limits are tighter in some tiers, so confirm against the current CMHC MLI Select terms for the specific deal. The "NOI adjustment" field lets you haircut income for affordability commitments, which run at least 10 years and bind a future buyer.
Private insured, 5–50 suites (Budget 2026, proposed). Budget 2026 proposes letting private mortgage insurers insure rental properties of 5 to 50 units: up to 85% LTV and 40-year amortization for existing properties (90% and 50 years for new construction), DCR of 1.15 on 5-year terms and 1.10 on 10-year terms, borrower net worth of at least 25% of the loan with a $100,000 minimum, and no bundling of separately titled properties to reach the unit count. Lenders can submit applications from February 1, 2027. No premium schedule has been published, so this format borrows the CMHC Standard grid as a SAMPLE placeholder; edit it once Sagen, Canada Guaranty or others publish pricing.
Use Add financing format or Duplicate on an existing card. Every format is a set of parameters: LTV cap, amortization, term, rate, DCR floor, lender fee, application fee, premium grid, surcharge, discount, NOI adjustment, unit range and net-worth test. Export the formats to share a set with the team; import to load one.
Verify current CMHC parameters, premiums and lender rates before using any figure with a client. This is a financing comparison tool, not lending, legal or tax advice.
Canadian Apartment Advisors operates under Hughes Commercial Realty Group. The information contained herein was obtained from sources deemed to be reliable and is believed to be true; it has not been verified and as such, cannot be warranted nor form a part of any future contract. Figures marked SAMPLE are illustrative placeholders, not sourced data.