Canada Boosts Rental Housing with $20B Financing Increase

52

In a significant move responding to the pressing national housing shortage, the Canadian federal government recently announced an injection of an additional $20 billion into low-cost financing for the creation of rental housing across the country. The Finance Minister, Chrystia Freeland, delivered the announcement.

The funding is an uplift of the existing Canada Mortgage Bonds program, pushing the annual limit from $40 billion to a new high of $60 billion. Specifically, this increased funding targets an augmentation of the construction of rental properties, including apartment complexes, student accommodation, and senior residences.

Follow us on Google News! ✔️


The government anticipates that this new influx of funding will drive rental construction upwards by an estimated 30,000 units each year. Interestingly, Freeland highlighted that this boost won’t draw any fiscal impact on the Government of Canada, underlining this is a “fiscally responsible policy using policy tools at our disposal”. She further elucidated that these funds will enable developers to secure loans for multi-unit rental enterprises at notably lower interest rates than those of conventional mortgages.

The Canada Mortgage and Housing Corp. quantifies the necessity for Canada to upscale its building pace with an additional 3.5 million homes by 2030, ultimately ensuring housing affordability. They’ve seen significant pressure to provide incentives to developers to erect new housing. In August, the housing start rate was around 250,000 units annually.

Most recently, the Liberals debatably took a step in the right direction by introducing a legislation aiming to eliminate GST charges on rental developments. This move forms part of an integrated effort to bolster the housing supply given the alarmingly acute shortage experienced with purpose-built rentals nationwide.

The Housing Minister, Sean Fraser, has passionately responded by urging builders to waste no time in getting their shovels in the ground. Stating, “we’re going to address the specific challenges at the root of the housing crisis we’re living through.”

After navigating through the Canadian housing market, maybe it’s time to unwind and try your luck somewhere else. As part of the West Island Blog team, we know all the best spots. Just swing by West Island Blog’s top online casinos where you will find the best places to play. You never know, you might find another home, a home where you’re always welcome, maybe even a jackpot home.