What Is Loan-to-Value (LTV)? How CMHC MLI Select Lets You Buy With As Little As 5% Down
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Why Does Loan-to-Value Decide How Much You Put Down?
Most investors ask “How much do I need to buy this building?” The real answer lives inside one term: Loan-to-Value, or LTV. It’s the number that quietly determines your down payment — and it’s the reason CMHC MLI Select can put multi-unit ownership within reach of everyday investors.
What Is Loan-to-Value (LTV)?
Loan-to-Value (LTV) is the percentage of a property’s value that a lender will finance. The higher the LTV a program allows, the smaller the down payment you need. If a lender offers 80% LTV, you finance 80% and bring 20%. If a program allows 95% LTV, you finance 95% and bring just 5%. LTV is the single biggest lever on how much capital you need to get started.
How Is LTV Calculated? (With an Example)
Property Value: $3,000,000
Loan Amount: $2,850,000
What Is LTC, and How Is It Different From LTV?
There’s a companion term worth knowing: Loan-to-Cost (LTC). LTV measures the loan against the property’s value (used for purchases and existing buildings). LTC measures the loan against the total cost to build (used for new construction). CMHC MLI Select can support up to 95% of value or cost depending on the project — so whether you’re buying a finished building or financing a new build, the high-leverage advantage applies.
Why Is 95% LTV Such a Powerful Advantage?
Higher LTV does two things for an investor. First, it lowers the capital needed per deal — freeing you to act sooner or preserve reserves. Second, it improves your capital efficiency — less money tied up in one property means more capacity to grow a portfolio. This is why the up-to-95% LTV in CMHC MLI Select is one of the program’s headline strengths: it’s government-backed financing designed to make income-producing real estate more accessible.
What Does 5% Down Actually Look Like on a Real Project?
Higher LTV does two things for an investor. First, it lowers the capital needed per deal — freeing you to act sooner or preserve reserves. Second, it improves your capital efficiency — less money tied up in one property means more capacity to grow a portfolio. This is why the up-to-95% LTV in CMHC MLI Select is one of the program’s headline strengths: it’s government-backed financing designed to make income-producing real estate more accessible.
On a qualifying $3M multi-unit project, 95% LTV can mean roughly $150,000 in equity rather than the $600,000+ a conventional structure might require. The exact figure depends on the deal’s fundamentals — the property’s income, its DSCR, and how the project scores on the MLI Select points system all factor in. That’s why the right number always comes from running your specific deal, not a rule of thumb.
Explore MLI Select Opportunities
Loan-to-Value is what turns “someday” into “now” for multi-unit investing — and up to 95% LTV is one of the most powerful features of CMHC MLI Select. To see what your entry point could look like on a real project, call Janak Singh Chhabra at 647-999-0935 or visit MLISelectProjects.ca.
No fee. No pressure. Just a conversation.
Frequently Asked Questions
What does LTV mean in real estate?
 LTV (Loan-to-Value) is the percentage of a property’s value that a lender finances. Higher LTV means a lower down payment.
What is the maximum LTV for CMHC MLI Select?
CMHC MLI Select can support up to 95% loan-to-value on qualifying projects, allowing a down payment as low as 5%.
What's the difference between LTV and LTC?
LTV compares the loan to a property’s value (for purchases); LTC compares the loan to total construction cost (for new builds). MLI Select can support up to 95% of either.
Does a higher LTV mean higher risk?
Higher leverage means a larger loan relative to value, but CMHC MLI Select is government-insured and still requires healthy fundamentals like a qualifying DSCR — so the financing remains sound.
Janak Singh Chhabra
A licensed Realtor at TFN Realty Inc., Brokerage – and one of the few specialists in Canada who works exclusively at the intersection of pre-construction real estate and CMHC MLI Select multi-unit investments. Janak is a two-time Diamond Award winner at Bay Street Group — one of the most recognized performance awards in Canadian real estate — for 2023 and 2024. The Diamond Award is given to top-performing realtors who demonstrate exceptional results across transaction volume, client satisfaction and professional excellence.
This article is for general educational purposes and is not financial, mortgage, or investment advice. CMHC program terms and mortgage rates can change — confirm current details with a qualified professional. Independent platform · Not affiliated with any government agency.