Acquire a cash-flowing rental building at 5% down.
CMHC MLI Select financing. Turnkey delivery. Leased and generating income from day one.
The Financing Arbitrage
MLI Select lets you acquire a building with 5% down and amortize over 50 years. Conventional financing requires 20-25% down with a 25-year amortization. The difference is transformative.
| Metric | Conventional | MLI Select |
|---|---|---|
| Down payment | $520,000 (20%) | $130,000 (5%) |
| Amortization | 25 years | 50 years |
| Interest rate | 5.00% | 4.00% |
| Monthly payment | $12,159 | $10,020 |
| Annual cash flow | −$9,786 | +$15,882 |
| Cash-on-cash return | −1.9% | 12.2% |
| DSCR | 0.93 | 1.13 |
With the same $520,000 in capital:
Assumptions & Sources
Building: 8-unit, 2BR/1BA, wood frame, new construction, Halifax.
Revenue: $2,100/unit/mo based on CMHC 2025 Rental Market Report — Halifax average 2BR rent $2,190–$2,291; new construction premium adjusted.
Vacancy: 3.0% stabilized. Halifax market vacancy 2.7% per CMHC 2025 RMS.
Operating expenses: $7,428/unit/yr — property tax, insurance, management (4% EGI), R&M, replacement reserve, and administration per CMHC Atlantic operating benchmarks (updated June 2023).
MLI Select: 100-point building (energy efficiency + accessibility). 50-year amortization, 5% minimum equity, CMHC insurance premium 5.18% of mortgage per CMHC premium schedule (July 2025). DSCR minimum 1.10 per CMHC MLI Select program.
Interest rates: 4.00% insured (5yr fixed) and 5.00% conventional based on current spreads above the Government of Canada 5-year bond yield (~2.75%, Feb 2026).
NOI calculation: Gross potential rent × (1 − vacancy) − CMHC-benchmarked operating expenses. This follows CMHC's underwriting methodology where expenses are prescribed by region and building type, not estimated by the borrower.
This is an illustrative example. Actual financing terms, rents, and expenses vary. Consult a CMHC-approved lender for your specific scenario.
10-Year Wealth Projection
Same $2.6M building. Conservative 3% annual rent growth, 2% expense growth, modest cap rate compression from 5.2% to 4.75%.
| Year | Rent/Unit/Mo | NOI | Property Value | Equity | Cumul. Cash Flow |
|---|---|---|---|---|---|
| 0 | $2,100 | $136K | $2.62M | $20K | $16K |
| 5 | $2,434 | $161K | $3.24M | $730K | $169K |
| 10 | $2,822 | $190K | $4.01M | $1.61M | $459K |
Assumes 3% rent growth, 2% expense growth, cap rate from 5.20% to 4.75% over 10 years. Mortgage: $2.60M at 4.00% / 50 yr (incl. CMHC premium). Illustrative only — actual results vary.
Why Buy Pre-Sale
5% Down Payment
MLI Select financing requires a fraction of the capital vs. conventional. Deploy less equity, keep more liquidity.
50-Year Amortization
Longer amortization means lower monthly payments and stronger cash flow from the first month of ownership.
Locked Price
Your purchase price is fixed at pre-sale commitment. No construction cost risk, no price surprises at closing.
Turnkey & Leased
Building is delivered fully constructed, tenanted, and generating income. No construction management, no lease-up risk.
How It Works
Pre-Commit at Locked Price
Select your building type and location. Lock in the purchase price before construction begins. Begin your CMHC MLI Select pre-qualification process.
Building Delivered Turnkey
Helio constructs, inspects, and leases the building. Premium finishes, qualified tenants, professional property management in place.
Close with MLI Select
Complete your purchase with CMHC MLI Select financing — 5% down, up to 50-year amortization. Cash-flowing from day one.
Reserve Your Building
Tell us what you're looking for and we'll share available inventory within 24 hours.
Common Questions
What is CMHC MLI Select financing?
CMHC MLI Select is a mortgage insurance program for purpose-built rental housing. It allows buyers to acquire rental buildings with as little as 5% down payment, with amortization periods up to 50 years. This dramatically reduces the capital required to own a rental property compared to conventional financing at 20-25% down.
What does "pre-sale" mean?
Pre-sale means you commit to purchasing the building at a locked price before construction is complete. Helio builds the property, secures tenants, and delivers it turnkey — fully leased and cash-flowing from day one. You close with MLI Select financing upon completion.
How much capital do I need?
With MLI Select at 5% down, you need significantly less capital than conventional financing. The exact amount depends on the building size and location. We'll provide specific numbers based on the buildings available in your target range.
What is included in the building?
Each building is delivered turnkey: fully constructed with premium finishes (quartz countertops, engineered hardwood, ductless heat pumps, triple-pane windows, HRV ventilation), leased with qualified tenants, CMHC-packaged for MLI Select financing, and generating rental income from day one.
What happens if I hold the building for 10 years?
With conservative 3% annual rent growth and modest cap rate compression, a $130K down payment on a $2.6M eight-unit building grows to approximately $1.6M in equity plus $459K in cumulative cash flow over 10 years. See the wealth projection above for the full year-by-year breakdown.
Can I use this with the Deal Analysis program?
The pre-sale and deal analysis programs serve different needs. Pre-sale is for investors who want a turnkey, completed building delivered ready to generate income. Deal Analysis is for investors who want to source land and have Helio build on it. Both use CMHC MLI Select financing when eligible.