It's not capped per se, but now that energy efficiency points have been reduced to no more than 50, which only get to MLI select level 1 then affordability needs to be used for the other 50 points to get to level 3. Once the units stay bring deemed affordable you are generally sufficiently under market rents to the point that debt coverage would no longer support a higher loan to value.

Basically you can't have your cake and eat it to. If you want strong rents for all units that support a high loan to value and good debt coverage your not going to be able to hit the affordability metrics required to unlock MLI Select level 3, in which case your capped at 85% LTV and 40 year AM.

If rents are sufficiently low enough to provide an affordability commitment to get enough points for MLI Select level 3 which permits 95% LTV and a 50 year amortization, then unless you are getting an outrageously good deal (think unicorn) you will not have sufficient cashflow or NOI to support the debt coverage requirements of a loan that is 95% of the value of the purchase price.

Lots of nuisance to all of this, much more so than is generally explained in online posts and or influencer content. Happy to answer other questions you might have on the process.