The current Canadian housing crisis is unprecedented in the nation’s history. It’s a big lift, but the federal government has a plan to tackle the issue.
Enter Build Canada Homes: the federal agency launched in September to build and finance affordable housing across the country. Build Canada Homes aims to be a one-stop shop for affordable housing, taking over responsibility for federal housing programs as it scales up operations.
To support the transition, the government also announced in September that $1.5 billion in additional loans for the Affordable Housing Fund’s new construction stream would be made available. The funding top-up, announced by Housing and Infrastructure Minister Gregor Robertson, is meant to accelerate projects that are ready to start construction.
What is the Affordable Housing Fund?
The Affordable Housing Fund (AHF) provides low-cost repayable loans paired with forgivable loans to build new affordable housing. The fund is designed to attract partnerships and investment to incentivize new construction across the country.
Another $385 million will be pulled forward from future years for the fund’s rapid housing sub-stream, which focuses on quickly building homes for people in urgent need of housing.
“Build Canada Homes marks a turning point in how we deliver affordable housing in Canada, said Robertson. “By combining bold investments with innovative construction methods and strategic partnerships, we’re not just building homes — we’re catalyzing the growth of the housing industry.
“With the additional $1.5 billion for the Affordable Housing Fund, we’re making sure that projects keep moving forward while Build Canada Homes ramps up. Canadians deserve housing that is accessible, sustainable, and built for the future.”
The Canada Mortgage and Housing Corporation (CMHC) will deliver this new funding while Build Canada Homes ramps up, ensuring no interruption in construction. The $1.5 billion will be delivered over the next two years and is expected to produce over 5,000 new homes.
The Bottom Line: For Canadians hoping to buy a home, Build Canada Homes combined with the Affordable Housing Fund offers a faster approach to getting attainable housing projects off the ground. If the government can pull off the massive goal of expanding the affordable new home supply, Canadians may finally experience some relief in today’s extremely tight housing market.
