The federal government is unlocking another $20 billion in financing for the construction of low-cost rental housing across Canada, Finance Minister Chrystia Freeland announced Tuesday.
The Canada Mortgage Bonds program, which raises funds for residential mortgage financing, had an annual limit of $40 billion.
The limit is being increased to $60 billion, which the federal government says will increase rental construction by 30,000 units annually.
“There is no fiscal impact for the government of Canada as a result of this measure. This is fiscally responsible policy using policy tools at our disposal,” Freeland told reporters Tuesday in Ottawa.
“This is a further measure in our broader and continuing campaign to build more homes for Canadians faster.”
The Liberals also introduced legislation last week to eliminate GST charges on rental developments as Ottawa ramps up efforts to increase the housing supply.
Experts say the shortage of purpose-built rentals is the most acute and is eroding housing affordability across the country.
“Our message to builders today is that it’s time to get shovels in the ground,” said federal Housing Minister Sean Fraser, who was also at the announcement.
“We are going to leverage all the tools at our disposal to make it easier for you to say yes to build more homes for Canadians.”