Federal government promises $2.55B in low-cost loans to build Toronto rental homes

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TORONTO - The federal government is promising billions in low-cost financing to help build thousands of rental homes in Toronto, including more than a thousand affordable units.

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Hey there, time traveller!
This article was published 19/03/2025 (265 days ago), so information in it may no longer be current.

TORONTO – The federal government is promising billions in low-cost financing to help build thousands of rental homes in Toronto, including more than a thousand affordable units.

Ottawa says it will provide $2.55 billion in financing through its Apartment Construction Loan Program, to be administered by the Canada Mortgage and Housing Corporation.

The city says the money will go toward building more than 4,800 rental homes, of which at least 1,075 will be affordable housing.

A new condo development is constructed  in Toronto, Friday, Feb. 23, 2023. THE CANADIAN PRESS/Chris Young
A new condo development is constructed in Toronto, Friday, Feb. 23, 2023. THE CANADIAN PRESS/Chris Young

Toronto, meanwhile, says it will offer nearly $235 million in financial incentives such as relief from development charges, fees and property taxes.

The city says the newly announced low-cost loans will allow it to speed up seven rental housing projects that are set to be under construction by the end of next year.

It says those projects are expected to include at least 20 per cent affordable rental homes.

Toronto Mayor Olivia Chow said the “landmark agreement” will help reduce barriers to build housing and help secure affordable homes “for generations to come.”

This report by The Canadian Press was first published March 19, 2025.

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