As Canada’s housing market continues to evolve, so do the financial tools and programs designed to support new construction.
One of the most impactful options for multi-unit residential developers today is CMHC’s MLI Select program, a solution that rewards socially responsible builds with access to high-leverage financing, extended amortization periods and low-cost capital.
But there’s a critical condition developers must meet to unlock those benefits: a surety bond.
For developers who also manage their own construction, this added layer of bonding can come as a surprise. It requires a deep understanding of both the surety market and the unique risk profile of developer-builders. That’s where NFP comes in.
“These deals are still relatively new, and most sureties weren’t writing them even a couple of years ago,” explains Slava Kolmatskyy, vice president of surety at NFP. “We’ve had the opportunity to support some of the first developer-led construction projects under MLI Select with bonding, and that’s given us a rare window into what both CMHC and surety providers are really looking for.”
Navigating Shifting Expectations for Builder-Developers
Kolmatskyy notes that while CMHC has traditionally worked with third-party general contractors who carried bonding on behalf of the project, the MLI Select update has shifted expectations. Now, even if a developer chooses to act as their own builder, CMHC still requires that same level of financial assurance — often in the form of performance and labour/material payment bonds.
“CMHC wants to know that the project is protected,” says Kolmatskyy. “From their perspective, surety bonds are a form of third-party validation. It tells them the developer has the financial capacity, the experience and the proper systems in place to get the job done.”
That’s where many developer-builders hit a wall. Traditional surety applications are often geared toward contractors, not developers, which can create unnecessary friction or confusion. Kolmatskyy’s team at NFP helps bridge that gap with tailored bonding strategies and direct relationships with Canada’s top surety markets.
“We’re not just pushing paperwork,” he says. “We’re working closely with clients to package their financials, tell their story and build confidence with underwriters. That’s what moves files forward.”
Streamlined Bonding Support for Developer-Led Builds
In today’s market, speed matters. Access to MLI Select financing can significantly improve a project’s viability, but only if developers can demonstrate compliance with CMHC’s requirements in a timely manner. That’s why NFP has built a streamlined approach designed specifically for developer-builders, ensuring that bonding doesn’t become a bottleneck.
“You need to be nimble, especially if you’re self-managing a build,” says Kolmatskyy. “Our role is to remove the guesswork and help developer-builders meet the requirements efficiently while positioning them for long-term success with their surety partners.”
As the demand for affordable, sustainable rental housing continues to grow, the MLI Select program represents a strategic opportunity — but only if developers can meet its standards. With rare experience in this niche, NFP is here to help.
“We’ve built strong relationships with surety providers who are now comfortable writing these types of deals,” says Kolmatskyy. “We’re helping clients take advantage of MLI Select without slowing down their project timelines.”
From early-stage guidance to final submission, NFP works with developer-builders to lay the foundation for success, combining construction insight with a proactive, relationship-based approach to risk.
Let’s talk surety.
Slava Kolmatskyy
Vice President, Surety
416.642.4238
slava.kolmatskyy@nfp.ca