Billions to be announced for housing construction in federal fiscal update, says source

 

Tuesday's economic statement will focus on creation of rental and affordable housing

Deputy Prime Minister and Minister of Finance Chrystia Freeland will announce billions of dollars worth of loans and other incentives for housing construction, CBC News has learned. 

The fall fiscal update, to be presented Tuesday by the federal finance minister, will include billions of dollars in loans and direct funding for the construction of affordable housing, a senior government source has told CBC News.

New measures will include $15 billion for 10-year loans for new rental housing construction, a $1-billion fund dedicated to getting more affordable housing built, and new mortgage rules for lenders dealing with homeowners at risk, according to the source, who is not authorized to speak publicly about the fall economic statement before it is tabled.

The measures are part of a restrained fiscal update focused on mitigating the housing crisis and easing cost-of-living challenges while still trying to grow the economy and create jobs, the source said. 

The Canada Mortgage and Housing Corporation (CMHC) will facilitate the lending to builders and the loans will have "favourable terms," said the source, who would not discuss the rate to be charged.

The money, which the government estimates will help build 30,000 new homes across Canada, is for rental construction projects with five or more units.

"This funding gives builders a lot of certainty during the riskiest phases of a housing project," said the source. "It helps ensure buildings and construction happens, which we need."