The upcoming federal budget is set to include a significant increase in funding for apartment construction loans, in an effort to address the ongoing housing crisis in Canada.
According to sources familiar with the matter, the budget will allocate additional funds to the Canada Mortgage and Housing Corporation (CMHC) to provide loans for the construction of new rental units. This move comes as the demand for affordable housing continues to rise, particularly in major cities like Toronto and Vancouver.
The CMHC currently offers loans to developers for the construction of rental units, with the goal of increasing the supply of affordable housing. However, the demand for these loans has far exceeded the available funding, resulting in a backlog of applications and delays in the construction of new units.
The increase in funding for apartment construction loans is expected to help alleviate this backlog and provide much-needed support to developers looking to build rental units. This, in turn, will help to increase the supply of affordable housing and provide more options for Canadians struggling to find suitable and affordable accommodations.
The federal government has been facing mounting pressure to take action on the housing crisis, with housing affordability becoming a top concern for many Canadians. The COVID-19 pandemic has only exacerbated this issue, as job losses and economic uncertainty have made it even more difficult for individuals and families to secure affordable housing.
In addition to the increase in funding for apartment construction loans, the federal budget is also expected to include measures to address other aspects of the housing crisis, such as the lack of affordable homeownership options and the rising cost of rent.
The details of the budget are set to be announced in the coming weeks, and it is expected to be a significant step towards addressing the housing crisis in Canada. With the increase in funding for apartment construction loans, the federal government is taking a proactive approach to tackling this pressing issue and providing much-needed relief to Canadians in need of affordable housing.
