The Canadian government is supporting builders in their efforts to construct more rental projects by providing access to low-cost financing. To achieve this, the Canada Mortgage Bond issuance limit will be increased by $20 billion annually, from $40 billion to $60 billion. The additional funds will be allocated to mortgage loans on multi-unit rental projects insured by CMHC. Eligible rental projects must have a minimum of five rental units and can include facilities such as apartment buildings, student housing, and senior residences.

This initiative is expected to result in the construction of up to 30,000 more rental apartments each year. This announcement aims to provide low-cost financing for rental apartments and act simultaneously with removing Goods and Services Tax (GST) on new rental housing.

This summer, the Department of Finance consulted with the credit union sector on a proposal to consolidate the Canada Mortgage Bond program with the Government of Canada debt issuance program. The objective was to create more funding opportunities to support the government's policy goals. The outcome of that consultation is yet to be announced, but you can access CCUA’s submission here.

CMHC has announced that it will soon launch consultations with the housing financing sector to inform potential additional solutions to increase Canada’s rental housing supply.

To raise awareness of the affordable housing sector, CCUA is hosting a webinar series on this all important issue. Register here to attend. The first session covered financialization and housing supply in Canada. You can view the recording here.