How Much Cash Do You Need for a Multifamily Investment? MLI Select Considerations

Reviewed October 29, 2026. An earlier version of this article described 5% down as universally available. The cash required for any multifamily purchase depends on the actual financing and transaction.

Before buying a multifamily property in Saskatoon, Calgary or another market, look beyond an advertised loan-to-value percentage. A lender's valuation, the property's operating income, financing costs, closing expenses and reserves can all affect how much cash you need.

Start with the lender's actual financing calculation

Loan-to-value (LTV) compares a loan with the value accepted by the lender. The maximum available for an eligible CMHC MLI Select project depends on the property, points, project type and underwriting. A headline maximum is not an offer, approval or guarantee that a buyer needs only the remaining percentage as cash.

As a simple illustration, if a lender values a property at $2 million and approves a $1.6 million loan, the difference is $400,000 before other costs. This is an arithmetic example, not a financing quote. The approved amount and value may be different from the purchase price or requested loan.

Budget beyond the down payment

• Legal work, inspections, appraisal and any required property reports.
• Insurance, lender fees and mortgage-insurance premium, as applicable.
• Adjustments at closing, due diligence and transaction-specific costs.
• Initial repairs, planned capital work, vacancy and operating reserves.

Ask your lender and lawyer which costs apply, when they are payable, whether any are financed and how much liquidity they expect you to retain. Net worth and cash on hand are different things.

Look at the property's ability to carry debt

Review leases, the rent roll and operating statements. Estimate net operating income after vacancy and operating expenses, then compare it with the proposed debt payments. Lenders may adjust the figures and apply project-specific debt-coverage requirements. Test how higher expenses, rates or vacancy could change the result.

Our guide to DSCR, LTV, NOI and cap rates explains these calculations with examples.

Where MLI Select fits

CMHC MLI Select is mortgage loan insurance for qualifying multi-unit housing. The program uses points for affordability, energy efficiency and accessibility commitments. Property and borrower eligibility, documentation, project type and financing terms are assessed case by case. Most eligible project categories require at least five units; exceptions and additional conditions apply.

Read the multifamily MLI Select guide and CMHC's current program information, then discuss the specific property with a CMHC-approved lender.

Plan your next investment

I help buyers and sellers compare multifamily properties and investment opportunities in Saskatoon, Calgary and the communities I serve. Together we can identify the information needed to review a property and questions for your financing team.

Hasan Sharif, REALTOR® | eXp Realty
Call or text 306-850-7687
Email hasan.sharif.realtor@gmail.com

For education only, not a loan commitment or financial, legal or tax advice. Financing and eligibility are subject to current program rules, lender underwriting and approval.