CMHC Premiums Rise July 14 for Multifamily Investors

✍️ By Debbie Balfour | WBN News | July 14, 2025 | Click HERE for your FREE Subscription to WBN News and/or to be a Contributor.

If you're planning to finance a multifamily property (5+ units) through CMHC, there’s a major change coming that could shake up your numbers. As of July 14, 2025, CMHC is officially increasing its mortgage insurance premiums across all multi-unit loan products, including MLI Select. While it’s being framed as a routine update, the reality is that it could significantly impact investor returns.

What’s Changing?

Premium rates will increase between 0.4% and 0.8%, depending on your loan’s structure.
Longer amortization periods will now carry an extra 0.25% fee for every 5 years beyond the 25-year standard.
If your building is not stabilized at the time of funding (i.e., not fully leased or producing income), there’s an additional 0.25% surcharge.
MLI Select discounts (10%, 20%, 30%) are still available, but you’ll need to earn them by meeting specific affordability, energy-efficiency, or accessibility criteria.

What Does That Look Like in Real Terms?

Say you're working on a $1 million loan at 90% LTV. Under the old premium model, your insurance cost might have been around 4.05% or $40,500. With the updated structure, including longer amortization and no discounts, you could now pay closer to 6.75% or $67,500. That’s a $27,000 increase added directly to your mortgage.

Why Investors Should Care

This change will tighten margins on both acquisitions and refinances. With higher upfront costs rolled into your loan, you’ll face:

Reduced cash flow and ROI
Increased monthly mortgage payments
Stricter lender underwriting
Potential revaluation of active or pending deals

How to Respond

Audit all pending deals: Re-run your financing models using the updated premiums.
Fund before July 14 if possible: You may still qualify for the lower rate if your deal closes in time.
Design to earn MLI Select discounts: Integrating energy, accessibility, or affordability standards could help reduce your premium.
Reconsider amortization terms: A 25-year amortization avoids additional fees—be sure the extended terms are worth the cost.
Consult your financing team ASAP: Your broker or lender can provide updated figures and alternatives.

The Bottom Line

These CMHC premium increases are more than just minor tweaks; they’re a financial pivot point. Investors who adapt quickly, plan around the changes, and structure deals strategically will still thrive. But those who overlook the added costs may find their margins shrinking fast.

Debbie Balfour | Real Estate Investing Success Coach + Podcast Host
📍 Website: www.DebbieBalfour.com
📧 Email: Debbie@DebbieBalfour.com
🔗 LinkedIn: Debbie Balfour
▶️ YouTube Channel: youtube.com/@DebbieBalfour

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