Remarks by the Deputy Prime Minister and Minister of Finance on unlocking $20 billion in new financing to build up to 30,000 more rental apartments per year

September 26, 2023

Ottawa, ON

Good afternoon.

Last week, I was proud to introduce our government’s first piece of legislation this fall: the Affordable Housing and Groceries Act.

Once passed, Bill C-56 will remove the GST on the construction of new apartment buildings so we can get more rental homes built, faster.

Today, I am announcing a further ambitious step in our government’s plan to make housing more affordable for Canadians.

Starting today, I am increasing the annual limit for Canada Mortgage Bonds from $40 billion to $60 billion.

Builders need access to low-cost financing.

And to ensure builders have access to the financing they need to build more homes, faster, we are unlocking up to an additional $20 billion from Canada Mortgage Bonds and directing this money to multi-unit rental projects.

This financing will make it easier for builders to access financing for construction projects like apartment buildings, student housing, and seniors’ residences.

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. And this is a further measure in our broader, and continuing, campaign to build more homes for Canadians, faster.

This new measure alone, announced and implemented today, will help build up to 30,000 additional rental units every single year.

And with the removal of the GST on new rental housing, we are expecting even more demand for this financing as we work to deliver more of the rental housing that Canadians urgently need.

Our plan is already having a concrete, specific impact. Just yesterday, a Toronto-based company said they are now going to build 5,000 new rental units across the country that were otherwise on hold.

And with provinces including Ontario, Newfoundland and Labrador, and most recently Nova Scotia, following our lead by eliminating provincial taxes on new rentals, we will, together, get even more new rental housing built in Canada.

These are concrete measures to get more housing built, faster. We will continue to work hard to build a Canada with affordable homes, stable prices and great careers for Canadians from coast to coast to coast.

Thank you very much.