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National Housing Strategy Initiatives

  1. National Housing Strategy
  2. Housing Accelerator Fund
  3. Apartment Construction Loan Program
  4. Affordable Housing Fund
  5. Affordable Housing Innovation Fund
  6. Housing Design Catalogue
  7. Rapid Housing Initiative
  8. Federal Lands Initiative
  9. First-Time Home Buyer Incentive
  10. Canada Greener Homes Loan Program
  11. Canada Housing Benefit
  12. Mortgage Insurance Programs

National Housing Strategy

Issue / question

What are the key accomplishments in housing since the launch of the National Housing Strategy?

Suggested response

  • Housing affordability and housing supply are real challenges faced by many Canadians. To give more Canadians a place to call home, the Government of Canada launched the $82+ billion, 10-year National Housing Strategy (NHS).
  • Since launching the Strategy in 2017, we have made over $42 billion in commitments to support affordable housing, the creation of new units and the repair of existing ones.
  • The NHS delivers concrete results. Since its launch, the federal government has supported or committed to the creation of 134,707 new units and the repair of 272,169 units.
  • Through bilateral agreements with all 13 provinces and territories, the NHS has also invested $1.86 billion from the federal government in supports and programming delivered by provinces and territories.

Background

  • Canada’s National Housing Strategy (NHS) sets ambitious targets to ensure that unprecedented investments and new programming deliver results. The government is focused on its commitment to eliminate chronic homelessness in Canada and take as many as 530,000 households out of core housing need. The NHS will result in up to 160,000 new housing units and 300,000 repaired or renewed housing units.
  • Through programs like the Affordable Housing Fund, the community housing initiatives, and funding to provinces and territories, the NHS is creating, and will continue to create, a new generation of housing in Canada. It is promoting diverse and inclusive communities and building housing that is sustainable, accessible, mixed-income, and mixed-use. The NHS is building housing that is fully integrated into the community — close to transit, close to work, and close to public services.
  • Expanded and reformed federal homelessness programming, a Canada Housing Benefit, and a human rights-based approach to housing will continue to ensure that the NHS prioritizes the most vulnerable Canadians including women and children fleeing family violence, Indigenous peoples, seniors, people with disabilities, those dealing with mental health and addiction issues, Veterans, young adults, and those experiencing homelessness. Programs in the NHS are based on the best evidence and ongoing input from people with lived experience of housing need.
  • The NHS respects the Government of Canada’s commitment to working on a nation-to-nation, Inuit-to-Crown, government-to-government basis with Indigenous peoples, which is why Indigenous Services Canada, with support from Canada Mortgage and Housing Corporation, is currently engaging with First Nations, Métis Nation, and Inuit partners to develop distinctions-based housing strategies.
  • Budget 2024 proposes a series of new housing related initiatives and programs and increases funding for existing NHS programs. Not accounted for in the $82+ billion figure, increases include an additional $15 billion for the Apartment Construction Loan Program, $400 million for the Housing Accelerator Fund, $1 billion for the Affordable Housing Fund and $117 million for the Federal Lands Initiative.
  • This new funding aims to reduce barriers to new construction for homebuilders, build affordable housing and provide shelter to those without homes and make it more affordable to rent and own a home.

Housing Accelerator Fund

Issue / question

How will the Housing Accelerator Fund increase housing supply?

Suggested response

  • The Housing Accelerator Fund is a $4.4 billion initiative that is helping to cut red tape and fast track at least 100,000 permitted new homes over the next three years.
  • It provides funding to local governments to incentivize local initiatives that remove barriers to housing supply, accelerate the growth of supply, and support the development of complete, low-carbon and climate-resilient communities.
  • Cities and regions estimate the Fund will lead to the creation of almost 750,000 permitted new homes for people in towns, cities, and Indigenous communities across Canada over the next decade.
  • Since launching the Fund last year, the federal government has signed 179 agreements across the country.
  • The Government of Canada recently announced a $400 million top-up so more municipalities can benefit from the Fund. This will fast-track an additional 12,000 new homes in the next three years.

Background

  • The Housing Accelerator Fund (HAF) provides incentive funding to local governments encouraging initiatives aimed at increasing housing supply. It also supports the development of complete, low-carbon and climate-resilient communities that are affordable, inclusive, equitable and diverse.
  • Budget 2022 announced $4 billion (now $4.4 billion) in funding until 2026-27 to launch the HAF. The target is to create at least 100,000 net new housing units over the course of the initiative.
  • It will provide funding to local governments to incentivize local initiatives that remove barriers to housing supply, accelerate the growth of supply, and support the development of complete, low-carbon and climate-resilient communities, which are affordable, inclusive, equitable, and diverse.
  • The HAF will also encourage local governments to implement lasting initiatives, such as:
    • growing housing supply faster than the historical average;
    • increasing densification;
    • speeding-up approval times;
    • tackling NIMBYism and establishing inclusionary zoning bylaws; and,
    • encouraging public transit-oriented development.
  • The Fund provides financial incentives to municipalities to remove systemic barriers to increased housing supply and densification. Municipalities can also use this funding for housing projects.
  • The HAF encourages local governments to implement initiatives that support complete communities, consisting of a broader range of land uses and housing types. The program also supports the creation of more affordable, inclusive, equitable, and diverse communities. It aims to incentivize local governments to create conditions where more homes can be built faster. It is expected that these homes will be across the entire housing continuum of all building types and will house more Canadians as a whole.

Apartment Construction Loan Program

Issue / question

What is the Government of Canada doing to promote the supply of rental housing?

Suggested response

  • As of December 31, 2023, the Government of Canada has supported the creation of more than 48,000 units of which close to 30,000 will be affordable.
  • The 2023 Fall Economic Statement announced additional funding of $15 billion for the program, starting in 2025-26.
  • Budget 2024 is providing an additional $15 billion to bring the program’s total contribution to over $55 billion to build over 131,000 new homes by 2031-32.
  • As part of the funding, the government announced Canada Builds, an initiative to partner with provinces and territories to build more rental housing.
  • The Government of Canada also recently announced that $500 million of the Apartment Construction Loan Program will be dedicated to new rental housing projects with innovative construction techniques such as prefabricated and modular housing.
  • The Apartment Construction Loan Program encourages rental housing construction by providing low-cost loans to support projects in areas where there is a need for more rental supply.

Background

  • The Apartment Construction Loan Program (ACLP) provides low-cost loans to encourage the construction of rental housing across Canada and supports sustainable apartment projects in areas where there is a need for additional rental supply.
    • Eligible projects must include affordable rental housing units and include resource efficiencies and accessibility features within the building design.
    • All projects must meet one of the affordability requirements and it should be maintained for at least 10 years.
    • Currently, at least 20% of units must have rents below 30% of the median total income of all families for the area, and the total residential rental income must be at least 10% below its gross achievable residential income.
  • Budget 2024 is providing an additional $15 billion to the program. This brings the program’s total contribution to over $55 billion to build over 131,000 new homes supported by 2031-32.
    • Of this amount, at least $100 million will be used to build homes above existing shops and businesses, and $500 million to homebuilders that use innovative construction techniques, such as modular housing, for new rental projects.
  • Via Budget 2024 and Canada’s Housing Plan, the Government of Canada also launched Canada Builds – partnering with provinces and territories to build more rental housing across the country.
    • Canada Builds will leverage the $55 billion ACLP by making it available to support partnerships with provinces and territories that launch their own ambitious housing plans, like the recently announced BC Builds initiative.
    • To access federal financing, provinces and territories will be expected to meet the benchmarks set by BC Builds and deliver action to build even more homes.
  • The 2023 Fall Economic Statement had announced the renaming of the Rental Construction Financing Initiative to the Apartment Construction Loan Program, with additional funding of $15 billion in new loan funding, starting in 2025-26, to build a minimum of 30,000 new apartments.
  • The Government of Canada recently announced new reforms to the ACLP to increase access to the program and make it easier for builders to build, with further details on these reforms to be shared later in 2024. The reforms include:
    • Extending loan terms;
    • Extending access to financing to include housing for students and seniors;
    • Introducing a portfolio approach to eligibility requirements so builders can move forward on multiple sites at once;
    • Providing additional flexibility on affordability, energy efficiency, and accessibility requirements; and
    • Launching a new frequent builder stream to fast-track the application process for proven home builders.

Affordable Housing Fund

Issue / question

What is the Government of Canada doing to ensure housing is available for Canadians in need?

Suggested response

  • As of December 31, 2023, we committed over $8.17 billion in low-cost loans and contributions for over 192,000 new and repaired units.
  • Between Budget 2024 and the 2023 Fall Economic Statement, an additional $2 billion in funding is being invested in the Affordable Housing Fund (AHF) to build more affordable housing for Canadians who need it most. This includes the launch of a new Rapid Housing Stream to build deeply affordable housing, supportive housing, and shelters for our most vulnerable.
  • The AHF is at the core of the National Housing Strategy. The Government of Canada is working with partners across the country to invest in the growth of livable communities.

Background

  • On November 21, 2023, the 2023 Fall Economic Statement announced the renaming of the National Housing Co-Investment Fund to the Affordable Housing Fund (AHF), along with additional funding of $1 billion over three years, starting in 2025‑26, to build more affordable housing.
  • Funding is still available under the current AHF. The federal government intends to announce reforms to the AHF in summer 2024.
  • Canada’s Housing Plan announced reforms are forthcoming to make the AHF easier to use, including fast-tracking approvals; allowing for economies of scale; and prioritizing projects that better support vulnerable populations.
  • Budget 2024 provides a further $1 billion top-up to the Fund bringing its total to $15 billion.
  • The AHF attracts partnerships with, and investments from the provinces and territories, municipalities, non-profits and co‑operatives, and the private sector, to focus on new construction and renewal of the existing affordable housing supply. It aims to support more shelter spaces for survivors of family violence, transitional and supportive housing, new and renewed affordable and community housing, and ways of making homeownership more affordable. The AHF also supports Canada’s climate change goals and improving the accessibility of housing for people with disabilities, by promoting universal design and making sure housing and common spaces are accessible to visitors with disabilities.
  • The AHF is aligned with public investment in job creation, skills training, transit, early learning, health care, and cultural and recreational infrastructure. The federal government will work closely with provinces and territories to ensure housing investments are well coordinated and aligned.
  • The AHF has minimum eligibility requirements for its social outcomes. For current projects, borrowers must:
    • Demonstrate financial viability and their financial and operational ability to carry out the project.
    • Ensure that rents for at least 30% of the units must be less than 80% of the Median Market Rent and maintained for a minimum of 20 years.
    • Meet 25% decrease in energy consumption and Greenhouse Gas emissions for repaired and renewed units.
    • Ensure that 20% of units within the project must meet or exceed accessibility standards.

Affordable Housing Innovation Fund

Issue / question

How will we create change to make housing more innovative and affordable?

Suggested response

  • The Government of Canada has invested over $750 million to provide innovative housing providers and developers the resources to generate and test new ideas and explore better ways of meeting housing challenges.
  • The new ideas supported by the Affordable Housing Innovation Fund will drive change and disrupt the status quo to by encouraging the creation of the next generation of housing in Canada.
  • The funds committed under both phases of the AHIF will create close to 20,000 homes, with more than 16,000 of them being affordable housing units.
  • As of December 31, 2023, more than $435 million has been committed under the fund to support the creation of more than 32,000 new units.

Background

  • The Affordable Housing Innovation Fund (AHIF) supports new ideas that will drive change and disrupt the industry – ideas and approaches that will evolve the affordable housing sector and create the next generation of housing in Canada.
  • This funding will support innovations that:
    • develop and test innovations that incorporate resource and operating efficiencies and are replicable and scalable – including financing, operating models, and technologies
    • facilitate partnerships and encourage participation from diverse stakeholders including private sector, not-for-profits, community housing organizations, co-operatives, municipalities, provinces, territories, Indigenous governments and organizations and social investment organizations
  • The AHIF defines affordability based on the criteria of the municipality where the project is located. Failing such municipal criteria, the provincial criteria may be used. Where no affordability criteria exist, Canada Mortgage and Housing Corporation will determine affordability for rental housing projects based on the median market rent. Projects must remain affordable for at least 10 years.
  • This investment is expected to support the construction of up to 6,000 new affordable homes over six years, helping to fill the gap for low and moderate-income households, seniors, new immigrants, and young professionals. The AHIF will help generate innovation and growth in the affordable housing sector by encouraging the development of new funding models and building techniques. The goal is to test new, innovative financing models and unique designs used to make housing more accessible and lower the costs and risks associated with affordable housing projects.

Housing Design Catalogue

Issue / question

What are the key aspects of the Housing Design Catalogue?

Suggested response

  • The Government of Canada is embracing innovative approaches to construct top-tier housing, aligning with our efforts to fortify infrastructure against climate challenges while rapidly enhancing Canada's housing inventory.
  • Consultations with stakeholders have begun on a Housing Design Catalogue initiative, which aims to expedite home delivery by establishing standardized housing designs, commencing with low-rise construction.
  • We are launching a modernized Housing Design Catalogue to standardize up to 50 efficient, cost-effective, and liveable home blueprints. With $11.6 million in Budget 2024, this will include frames for modular homes, row housing, and fourplexes – that housing manufacturers, provinces, territories, and municipalities will be able to use to reduce costs and timelines for home building.
  • To access funding under the new Canada Housing Infrastructure Fund, which includes funding for water, wastewater, stormwater, and solid waste infrastructure to support the construction of more homes, provinces and territories must commit to require as-of-right construction for the Housing Design Catalogue.

Background

  • The Housing Design Catalogue is an innovative way to build high-quality housing, in line with our work to make infrastructure climate resilient, and boost Canada’s housing supply at an unprecedented rate.
  • From the 1950s to 1970s, Canada Mortgage and Housing Corporation created a series of housing design catalogues to help Canada accelerate the production of housing. These efforts were an essential component of the comprehensive federal effort to build capacity in the construction sector and address post-war housing shortages.
  • The consultation process for the new Housing Design Catalogue has begun. It will allow sufficient time to incorporate a wide range of perspectives from across the housing sector, including builders and developers, academics, and community housing organizations.
  • Designs will consider similar characteristics to those that guide the development of the national model building code, such as safety, affordability, sustainability, accessibility, and cultural appropriateness. Designs will also be assessed on their ability to support the government’s objective to accelerate the delivery of new housing supply – such as their cost, speed of delivery, and permissibility under local land-use policies.
  • The Government of Canada has prioritized taking urgent action to address the housing needs of Canadians. The concept of a design catalog has increasingly been identified by stakeholders across the housing sector as a tool to help accelerate housing supply. The timing of the December 2023 announcement was designed to capitalize on recent success the Government has had through tools such as the Housing Accelerator Fund in addressing barriers to new housing supply at the local level.
  • On April 2, 2024, the Prime Minister announced the creation of a Canada Housing Infrastructure Fund which includes funding for water, wastewater, stormwater, and solid waste infrastructure to support the construction of more homes. As part of the conditions associated with this funding, provinces and territories must require construction abide by zoning and building codes for the Housing Design Catalogue.
  • In fall 2024, we will publish the first phase of the catalogue which will include up to 50 low-rise housing designs—including accessory dwelling units, modular homes, and multi-plexes—for use across Canada. The next phase of the catalogue will include mid-rise and single-family home designs. We will make it simpler and faster for communities to plan for housing.

Rapid Housing Initiative

Issue / question

What is the aim of the Rapid Housing Initiative?

Suggested response

  • The $4 billion Rapid Housing Initiative (RHI) addresses urgent housing needs for vulnerable Canadians by rapidly creating new affordable housing.
  • The RHI is creating over 15,500 new affordable units with over 5,000 new units supporting women and/or women and their children (36% of units), and over 6,000 new units supporting Indigenous Peoples (39% of units).
  • The RHI provides capital contributions to facilitate the rapid construction of new housing and/or acquisition of existing buildings for conversion. It prioritizes Canadians in severe housing need and vulnerable populations.

Background

Round 1

  • The Rapid Housing Initiative (RHI) was initially a $1 billion program to help address urgent housing needs of vulnerable Canadians, especially in the context of COVID-19, through the rapid construction of affordable housing. The initial $1 billion investment is divided into two equal funding streams:
  • The Major Cities Stream provided $500 million in immediate support to 15 pre-determined municipalities that were identified in consultation with the Federation of Canadian Municipalities (FCM).
  • Under the $500 million Projects Stream, provinces, territories, municipalities, Indigenous governing bodies and organizations, and non-profit organizations, could apply for funding by December 31, 2020. The RHI received a significant amount of interest, resulting in many quality applications that exceeded the available funding.

Round 2

  • Budget 2021 committed $1.5 billion for the RHI in 2021-22 to address the urgent housing needs of vulnerable Canadians by providing them with adequate affordable housing in short order. At least 25% of this funding would go towards women-focused housing projects.
  • $500 million was allocated to the Cities Stream and flowed to 30 pre‑determined municipalities.
  • $1 billion was allocated to unfunded eligible projects from Round 1.

Round 3

  • Budget 2022 provided $1.5 billion over two years, starting in 2022-23, to extend the RHI. This new funding is expected to create over 5,200 new affordable housing units, with 48% of units going towards women-focused housing projects.
  • The $500 million under the Cities Stream was allocated to 41 pre‑determined municipalities based on Census 2021 data of renters in severe housing need.
  • $1 billion under the Projects Stream was allocated via an applications-based process. Eligible applicants for this stream include provinces, territories, municipalities, Indigenous governing bodies and organizations, and non-profit organizations.
  • In January 2024, the governments of Canada and New Brunswick and the City of Moncton announced over $6.7 million in funding, including $3.9 million through the third round of the RHI, to help build 46 new homes across two projects in Moncton.

Federal Lands Initiative

Issue / question

What is the Government doing to use federally owned land and properties to increase the supply of affordable, energy efficient and accessible housing?

Suggested response

  • As of December 31, 2023, we are on track to deliver more than 3,946 housing units through this initiative, with an additional 3,149 units under development.
  • Budget 2024 announced a $117 million top up to the program. This will help unlock more federal lands for affordable housing providers.
  • This top up is part of the Government of Canada’s Public Lands for Homes Plan, which represents a bold new approach to unlock 250,000 new homes by 2031.
  • The Federal Lands Initiative supports the transfer of surplus federal lands and buildings to eligible proponents. The properties can be discounted to as low as $1, depending on the level of social outcomes the proponent delivers.
  • Through this initiative, surplus federal properties across Canada are made available for partners to repurpose into affordable housing.

Background

  • The Federal Lands Initiative (FLI) is now a $317 million fund that supports the transfer of surplus federal lands and buildings to eligible proponents. This is available at discounted to no cost to be developed or renovated for use as affordable housing. The discount on the property will depend on the level of social outcomes achieved by the winning proposal. Once transferred, the property will be developed or renovated into affordable, sustainable, accessible, and socially inclusive housing.
  • The FLI was launched in 2018 with a target of making 4,000 suitable properties available to selected proponents over a 10-year period.
  • As of December 31, 2023, 22 agreements were signed representing a commitment of 3,946 units and $120.4 million in forgivable loans.
  • The FLI facilitates subsidies for the transfer of federal lands to housing providers to encourage the development of sustainable, accessible, mixed-income, mixed-use developments, and communities. Surplus federal properties across Canada will be made available through the new program to partners that repurpose them to provide housing at less-than-market rates. The partners will receive the federal properties at a value somewhere between market value and $1. The difference between market value and transfer value represents the government’s contribution towards the provision of affordable housing.
  • Each housing project must meet the following National Housing Strategy requirements:
    • Affordability: 30% of units must have rents at less than 80% of local median market rents;
    • Energy efficiency: a minimum 25% reduction in energy consumption and greenhouse gas emissions compared to either national building codes or past performance; and
    • Accessibility: 20% of units must meet accessibility standards.
  • In addition, as announced in Budget 2024, the Government of Canada will accelerate the process of making more public land available for housing, lease public land instead of selling it off, and create a new public land bank and mapping tool to help homebuilders more easily identify and navigate public lands that can be used for housing.
  • The goal of this new Public Lands for Homes Plan is to unlock 250,000 new homes by 2031 on federal, provincial, territorial and municipal public lands across the country.

First-Time Home Buyer Incentive

Issue / question

How did the National Housing Strategy help Canadians purchase their first home?

Suggested response

  • The First-Time Home Buyer Incentive helped make home ownership more affordable for young Canadians by lowering their monthly mortgage payment.
  • It offered qualified first-time home buyers a repayable incentive that allowed them to afford their mortgage payments.
  • As of December 31, 2023, the Government of Canada committed close to $435.1 million, supporting over 24,000 first-time home buyers.
  • After a review of federal housing programs, a decision was made to discontinue the program earlier than planned to refocus federal initiatives on more targeted actions to support renters and lower the costs of homeownership.
  • Budget 2024 and Canada’s Housing Plan announced new and improved initiatives to support first-time home buyers. This includes increasing the Home Buyers’ Plan withdrawal limit to $60,000 and creating 30-year mortgage amortizations for new builds, to help first time home buyers by lowering their monthly mortgage payments.

Background

First-Time Home Buyer Incentive (FTHBI)

  • Canada Mortgage and Housing Corporation (CMHC) stopped approving new applications under the FTHBI on March 31, 2024.
  • $1.25 billion was originally allocated for the FTHBI (program was discontinued in 2024 to refocus federal funding on new actions).  As of December 31, 2023, CMHC has committed $435.1 million representing 24,216 applications to the FTHBI.
  • The FTHBI was a shared-equity mortgage with the Government of Canada, available through financial institutions, which offers:
    • 5% or 10% for a first-time buyer’s purchase of a newly constructed home
    • 5% for a first-time buyer’s purchase of a resale (existing) home
    • 5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home
  • The shared equity component of the incentive means that the government shares in both the upside and downside of the property value, up to a maximum gain or loss equal to 8% per annum (not compounded) on the Incentive amount from the date of advance to the time of repayment.
  • The homebuyer had to repay the Incentive after 25 years, or when the property was sold, whichever came first. The homebuyer could also repay the Incentive in full any time before, without a pre-payment penalty.

Shared Equity Mortgage Providers (SEMP) Fund

  • CMHC is no longer accepting new applications under the SEMP Fund.
  • This $100 million lending fund supported existing shared equity mortgage providers. As of December 31, 2023, commitments of $33.95 million have been made to support over 1,088 units.
  • The BlackNorth Initiative (BNI) Homeownership Bridge Program was not affected by the closure of the SEMP application process. The BNI Homeownership Bridge Program is delivering an estimated 200 affordable homes to first-time homeowner Black families in the GTA.
  • The SEMP supported existing shared equity mortgage providers. The program offered eligible proponents repayable loans from one of two funding streams:
    • Preconstruction Loans: Funding to commence new housing projects in which shared equity mortgages will be provided to homebuyers via SEMPs.
    • Shared Equity Mortgages: Allow SEMPs to fund shared equity mortgages that they provide directly to first time homebuyers.

Canada Greener Homes Loan Program

Issue / question

What are the objectives and results of the Canada Greener Homes Loan Program?

Suggested response

  • The Canada Greener Homes Loan program is part of a $15 billion investment in greener home programs, administered by Canada Mortgage and Housing Corporation, aimed at helping Canadians upgrade their homes and save money on their energy bills.
  • The program is designed to help homeowners to undertake deeper, more costly retrofits that will have a significant impact in reducing a home’s environmental footprint and energy bills, and improve home resiliency.
  • As of April 24, 2024, over 68,000 Canadians have been approved for a Canada Greener Homes Loan, valued at approximately $24,000 per loan on average.
  • Budget 2024 proposes to launch a new Canada Greener Homes Affordability Program to support energy efficient retrofits for Canadian homeowners and renters with low to median incomes.

Background

  • The Canada Greener Homes Loan program is administered through Canada Mortgage and Housing Corporation (CMHC). The program is available to:
    • Homeowners
    • Low-rise multi-unit residential building homeowners – with additional criteria
    • Indigenous groups
    • Northern and off-grid communities – with additional initial advance (25% vs 15%) available
  • Budget 2021 provided $4.4 billion for the Canada Greener Homes Loan program, of which a portion ($2.625 billion) provided interest-free loans of up to $40,000 to help up to 175,000 homeowners undertake extensive home retrofits. (Based on an estimated $15,ooo average loan amount).
  • The most popular retrofits supported by the Canada Greener Homes Loan program are:
    • Heat pumps
    • Windows
    • Solar panels
  • The program has seen the most amount of uptake in:
    • Ontario
    • Alberta
    • Quebec
    • British Columbia
  • Budget 2024 proposes to provide $800 million over five years, starting in 2025-26, to launch a new Canada Greener Homes Affordability Program that will support the direct installation of energy efficiency retrofits for Canadian households with low-to-median-incomes. This program represents the next phase of the Canada Greener Homes Initiative and will be co-delivered with provincial and territorial partners. It will also be complemented by CMHC's Greener Homes Loan program, which provides interest-free loans of up to $40,000 for energy efficiency home retrofits.

Canada Housing Benefit

Issue / question

Who benefits from the Canada Housing Benefit?

Suggested response

  • The Government of Canada created the $4.8 billion Canada Housing Benefit to provide direct financial support to families in need across the country.
  • We worked directly with provinces and territories to create and deliver a unique benefit that responds to local housing needs and priorities.
  • In addition to this, we provided a one-time top-up to the Canada Housing Benefit in April 2023, providing a $500 payment to 1.8 million Canadian renters who are struggling with the cost of housing.

Background

  • The Canada Housing Benefit is delivered by provinces and territories and invests $4 billion, cost-matched by both the federal and provincial and territorial governments, over a period of eight years up to 2027-2028.
  • The provincial/territorial Canada Housing Benefit aims to reduce housing need for some of Canada’s most vulnerable population groups by providing funding directly to households in need, monthly, to help them afford their housing costs.
  • Budget 2021 added an additional $315 million to the Canada Housing Benefit, specifically for women and children fleeing violence. This was broadened to cover all those experiencing gender-based violence and is also cost-matched by provinces and territories for a total of $630 million.
  • In addition, the government delivered the one-time top-up to the Canada Housing Benefit, a payment of $500 to roughly 1.8 million eligible renters in Canada who are struggling with the cost of housing.
  • This one-time federal benefit was in addition to the Canada Housing Benefit co-funded and delivered by the provinces and territories.
  • The top-up to the Canada Housing Benefit was available to applicants with an adjusted net income below $35,000 for families, or below $20,000 for individuals, who are 15 years of age or older and pay at least 30% of their adjusted net income on rent.
  • In February 2024, the government announced an additional $100 million for the Canada Housing Benefit to support those households in housing need with direct affordability support, including newcomers to Canada and those seeking asylum.

Mortgage Insurance Programs

Issue / question

How are mortgage insurance programs promoting housing affordability and supporting an efficient competitive housing finance market for Canadians?

Suggested response

  • The Government of Canada is working hard to make sure that homeownership is possible for many Canadians. Through Canada Mortgage and Housing Corporation’s (CMHC) mortgage loan insurance programs, we help Canadians across the country in accessing homeownership while also supporting the stability of the housing market.
  • Saving for a 20% down payment is difficult for most Canadians. Mortgage loan insurance is an essential tool enabling Canadians to buy a home at interest rates that are comparable to those who have a higher down payment.
  • CMHC also uses mortgage loan insurance to drive housing supply by providing access to preferred interest rates for the construction, purchase, and refinancing of multi-unit residential properties.

Background

  • Canada Mortgage and Housing Corporation (CMHC) is committed to working with mortgage industry professionals to help homebuyers meet their housing needs and to provide a full range of mortgage loan insurance products for homeowner and small rental loans.
  • Benefits of CMHC’s mortgage loan insurance for Canadian homebuyers:
    • Access to homeownership with a minimum down payment of 5%;
    • Access to competitive interest rates;
    • Flexible terms and conditions to meet a variety of financing needs; and
    • Products, training, solutions, and service available everywhere in Canada.
  • CMHC sets its premiums and retains enough capital to absorb any potential losses without the need for government support.
  • Budget 2024 announced the Government of Canada’s intention to make targeted changes to mortgage insurance rules to encourage densification and support the efficient functioning of the housing finance market, by enabling homeowners to add more units to their homes. The Government of Canada will consult stakeholders on proposed changes to regulations, including for refinancing, maximum loan and home price, as well as other mortgage insurance rules where homeowners are adding additional units.
  • For project developers, MLI Select is an innovative multi-unit mortgage loan insurance product focused on affordability, accessibility, and climate compatibility. It offers access to reduced premiums and longer amortization periods based on the level of commitment to affordability, accessibility, and climate compatibility.
  • Budget 2023 announced the federal government’s intention to deliver a separate insurance subsidy for households at high risk of flooding. Budget 2024 reaffirmed the commitment to National Flood Insurance (as announced in Budget 2023) with the intention to establish a subsidiary of CMHC to deliver flood reinsurance, and $15 million to CMHC in 2025-26 to advance implementation of a national flood insurance program by 2025.
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