What Toronto Actually Announced

In June 2026, the City of Toronto confirmed a $1.5 billion partnership with the federal and provincial governments under the Canada-Ontario Partnership to Build. The funding is designed to backfill the revenue the City currently collects through development charges (DCs), the per-unit fees builders pay to fund roads, transit, water, and sewer infrastructure.

With that funding in place, Toronto says it will be able to reduce DCs by 40 to 60 percent between 2026 and 2029, depending on unit type. Which is well beyond the 30 to 50 percent the funding program required.

The Problem: Multiplexes Up to Six Units Already Pay $0

Here’s why the announcement is less significant to multiplex investors than the headlines make it seem. Toronto has steadily been removing development charges from small-scale housing for years. All units up to a fourplex have been exempt from development charges since 2022. In 2025, the City expanded that exemption to cover all units up to a sixplex.

In other words, if you’re building a duplex, triplex, fourplex, fiveplex, sixplex, garden suite, or laneway suite in Toronto today, your development charges are already $0, and have been for a while*. The 40 to 60 percent reduction announced as part of this $1.5 billion deal applies to the standard DC rate schedule, the one that kicks in for projects that fall outside that small-scale exemption.

A 40 to 60 percent discount on a fee you weren’t paying in the first place isn’t a discount.

So Who Does the Reduction Actually Help?

The reduction applies to the standard non-rental DC rates, which currently sit at roughly:

• $52,676 per unit for one-bedroom and bachelor units (eligible for a 40 percent reduction)
• $80,690 per unit for two-bedroom-and-larger units (eligible for a 60 percent reduction)

These rates apply to anything that doesn’t qualify for the six-unit multiplex exemption, such as small apartment buildings, larger purpose-built rentals, and condo developments. For those projects, the savings are real and significant: a 2-bedroom unit’s DC liability would drop from roughly $80,690 to about $32,276, a savings of over $48,000 per unit.

Where It Gets Interesting: Projects Just Past Six Units

There is one scenario where multiplex investors should care: projects that go beyond six units.

Based on how the City has structured similar exemptions in the past, the first six units on a lot stay exempt even if you build more. It’s only the units beyond six that get charged DCs at the standard rate. That means an 8-unit building wouldn’t pay DCs on all 8 units, only on units 7 and 8.

Using current rates, that’s the difference between owing roughly $105,000 to $161,000 on those two units today, versus roughly $63,000 to $65,000 once the reduction takes effect. That’s a total savings of $42,000 to $97,000, depending on the size of those last two units.

One More Thing: This Isn’t Locked In Yet

It’s also worth being precise about where this stands. The $1.5 billion and the 40 to 60 percent figures are part of an announced commitment. They still require Toronto City Council to formally pass the updated bylaw and finalize a Transfer Payment Agreement with the province. Until that happens, the standard DC rates in effect today haven’t actually changed.

Bottom Line for Multiplex Investors

If you’re building within Toronto’s six-unit multiplex framework, this $1.5 billion announcement doesn’t move your numbers. You’re already at $0 in development charges, and that hasn’t changed.

Where this reduction actually matters is for anyone scaling past six units, where standard DC rates still apply. For those investors, the gap between “stop at six” and “push to eight or more” just got a whole lot smaller. This might just be the deciding factor for investors choosing how big to build.

*Some garden and laneway suites are subject to a 20-year development charges deferral rather than a full waiver, depending on configuration.

If you’re building or financing a multiplex in Canada, you’ve probably heard the term MLI Select come up. But what exactly is it, and why should multiplex builders care? The CMHC MLI Select program is one of the most powerful financing tools available to residential developers right now — and understanding it could mean the difference between a project that pencils out and one that doesn’t. In this article, we break down how MLI Select works, who qualifies, what the benefits are, and how Plexcon’s clients have used it to move forward with multiplex builds in the Greater Toronto Area.

What Is CMHC MLI Select?

MLI Select — short for Multi-Unit Mortgage Loan Insurance Select — is a CMHC insured mortgage product designed specifically for purpose-built rental housing. Unlike standard CMHC insurance, MLI Select offers significantly enhanced terms to developers who commit to meeting specific criteria around affordability, energy efficiency, and accessibility. The program was introduced to encourage the construction of more rental housing across Canada, particularly in high-demand urban centres like Toronto, Vancouver, and Ottawa. It’s not limited to large apartment towers — multiplexes qualify, making it highly relevant to builders like Plexcon.

Key Benefits of MLI Select

Here’s what makes MLI Select stand out from conventional financing options:

• Higher loan-to-value (LTV): Developers can access LTV ratios of up to 95%, dramatically reducing the equity required upfront.
• Extended amortization: MLI Select can offer amortization periods of up to 50 years, lowering monthly debt service costs and improving cash flow.
• Lower interest rates: CMHC-insured mortgages typically carry lower interest rates than conventional commercial loans because the lender risk is reduced.
• Non-recourse financing: Unlike many conventional loans, CMHC insured mortgages are non-recourse, meaning your personal assets are not on the hook if the project underperforms.

How the Points System Works

MLI Select uses a tiered points system to determine the level of benefits a borrower receives. Points are awarded based on how well the project meets three criteria:

1. Affordability: What percentage of units are rented at or below 80% of median market rent in the area?
2. Energy efficiency: Does the building meet or exceed specific GHG emission and energy intensity targets?
3. Accessibility: How many units include accessible features such as wider doorways, barrier-free bathrooms, and elevator access?

The more points you accumulate, the better the financing terms you qualify for. A project that scores highly in all three categories could access the full suite of benefits — including 50-year amortization and the maximum LTV.

Does My Multiplex Qualify?

To access MLI Select, your project must meet a few baseline requirements:

• The property must be a purpose-built rental with a minimum of 5 units. This is an important threshold — properties with 4 units or fewer do not qualify for MLI Select, though they may still be eligible for other CMHC programs.
• The project must be in Canada (all provinces and territories are eligible).
• The borrower must intend to hold and rent the property — not flip or sell immediately.

For multiplex builders working on 6-, 8-, or 12-unit projects, MLI Select is often an excellent fit — provided the project can earn enough points through affordability, energy, or accessibility commitments.

MLI Select vs. Conventional Construction Financing

Many first-time multiplex developers assume they’ll use a conventional construction loan, convert to a term mortgage at completion, and refinance later. MLI Select can actually compress and improve that entire process. Because the insured financing is arranged upfront, you know your long-term debt structure before you break ground — which makes project pro formas significantly more reliable.

At Plexcon, we work closely with financing partners like BLD Financial to help our clients understand whether MLI Select is the right fit before committing to a build. In many cases, the program transforms a marginal project into a strong investment.

The Bottom Line

CMHC MLI Select is one of the most compelling tools available to multiplex builders in Canada today. With higher LTV ratios, extended amortization, and lower borrowing costs, it can fundamentally change the economics of a purpose-built rental project.

If you’re considering a multiplex build in Toronto or the GTA, it’s worth having a conversation about whether MLI Select applies to your project — ideally before you finalize your financial model.

CHMC recently updated their Design Catalogue to include full technical packages that allow for a much more streamlined process when converting a traditional detached house to a multiplex. These are publicly available, open source plans that are code compliant and essentially ready to submit for permitting right out of the box.

Bill 60 was approved by the provincial legislature on November 24, 2025, this marks one of the most significant changes to the landlord-tenant balance in Ontario in recent years. Before Bill 60, it would take several months to over a year to evict a delinquent tenant in Ontario, whereas in Alberta the process would take 14 days to a few months at most. The bill gives property owners more control, predictability and security over their assets. Here’s how Bill 60 helps landlords.

1. Faster eviction process for late or missed rent

The waiting period to file an eviction because of non-payment of rent has been lowered from 14 days to 7 days. This means that landlords will now be able to file an eviction notice with the LTB (the Landlord and Tenant Board) much faster, which means less lost rent and tenants will be more accountable. 

2. Tenants must  pay at least 50% of owed rent before raising counter-issues

Bill 60 introduces a new procedural requirement: for a tenant to raise issues such as repairs, harassment or maintenance at a non-payment hearing they must first pay 50% of the outstanding rent. This makes it harder for tenants to delay L1 non-payment hearings and evictions with last-minute complaints. 

3. A clear definition of “persistently late” rent

Persistently late rent has always been a reason for eviction, but the definition was unclear. Bill 60 now requires a clear definition of what it means  to be “persistently late”. This gives landlords enforceable standards, more predictable outcomes at hearings and an easier time when dealing with tenants who are always late on rent. 

4. Easier N12 (landlord’s own-use) evictions

Under Bill 60, the requirements for the compensation of one month’s rent (or an alternative unit) can be waived if the landlord gives at least 120 day’s notice or if the date of termination is the same as the end of the lease period. This means that it will be much less costly for real own-use cases for landlords who are looking to move back into their property or sell at the end of the lease.

5. Shorter timelines for LTB decision reviews and limits on LTB to reopen its own decisions

Under Bill 60, any request to review a LTB decision has been shortened from 30 days to 15 days. Regulations may now also restrict when and how the LTB can overturn its own decisions. This will mean faster final decisions from the LTB and reduces delays caused by review requests. 

6. All notices must now use LTB-approved forms

All notices under the RTA (Residential Tenancy Act), including but not limited to eviction notices, must now be issued under LTB-approved forms. This ensures that all notices are compliant and helps reduce disputes and dismissals from technical and procedural errors. 

What does this mean for Ontario landlords?

What do all these changes mean for Ontario landlords? Bill 60 aims to give the landlord-tenant relationship more balance. This bill gives power and security back to the landlords. This means that there is less financial risk, more control and predictability when it comes to LTB decisions and ultimately it means that landlords have more incentive to rent out their property. 

What does this mean for Ontario’s rental market? With more security and incentives for landlords to rent out their units, this means more landlords returning to the market to either rent out their existing units or invest in a unit for rental purposes. This means more developers are likely to build rental oriented units as well. The end result is that we will see an increase in the rental supply in Ontario, which in turn means lower rental rates.