In a recent move to address the ongoing housing crisis, Canada’s Finance Minister Chrystia Freeland announced on Tuesday that the Liberals are raising the Canada Mortgage Bonds program limit from $40 billion to $60 billion. This increase is expected to unlock an additional $20 billion in low-cost financing for residential mortgage financing across the country.
The policy, characterized as fiscally responsible by the government, is projected to stimulate the construction of an extra 30,000 rental units annually. This initiative aims to alleviate the shortage of purpose-built rentals and mitigate housing affordability issues that have been increasingly prevalent across Canada.
In addition to the increased funding, new legislation has been introduced to eliminate GST charges on rental developments. This legislative change is expected to further incentivize builders and developers to increase their focus on rental property construction.
Housing Minister Sean Fraser has urged builders to act immediately in response to these changes. The swift action of builders and developers in utilizing these new resources is critical in mitigating the current housing crisis.
The government’s multi-faceted approach, involving both increased funding and legislative changes, demonstrates its commitment to addressing housing affordability and availability issues head-on. These measures are expected to have a significant impact on the residential property market, potentially leading to increased housing availability and affordability for Canadians.
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