The Government of Canada and the City of Toronto announced a partnership on August 5 to unlock thousands of new rental homes that had already been planned, permitted, and approved but lacked financing to start construction. Prime Minister Mark Carney and Toronto Mayor Olivia Chow said the two governments will invest more than C$2.7 billion over three years across 18 housing projects, delivering more than 5,600 rental homes — with more than 4,500 due to break ground before the end of this year.
The portfolio runs through two channels. On the non-market side, Build Canada Homes will provide more than C$310 million to advance nine projects on city-owned land, delivering nearly 1,900 rental homes (over 700 supportive or affordable, over 1,100 rent-controlled); the City of Toronto is contributing public land at nominal value plus more than C$530 million in capital funding and incentives, including municipal and school property-tax exemptions of up to 99 years.
On the market side, the Canada Mortgage and Housing Corporation’s (CMHC) Apartment Construction Loan Program will provide more than C$1.8 billion in low-cost financing for nine projects, delivering over 3,700 market-rate rental homes (more than 1,000 affordable), with up to C$600 million more in standby financing for additional Toronto projects as they become ready.
