Thursday, August 6, 2026
The Government of Canada and the City of Toronto announced that over the next three years, in partnership, they will invest over $2.7 billion to build more than 18 housing projects.
These projects will deliver more than 5,600 new rental homes, with shovels in the ground on more than 4,500 homes before the end of this year.
“Toronto is becoming a model for how a great city can build its way forward. Together with the City of Toronto, we are getting thousands of new rental homes built, across every part of the housing system, in strong, safe communities that people can afford. This is what is possible when governments build together.” said Prime Minister Mark Carney.
“Today’s announcement shows what’s possible when governments work together. Today’s investment means more people will have the opportunity to find a home they can afford, stay close to their communities, and build a future in the city they love. Together, we are delivering the housing Toronto needs and creating a more affordable, caring city for everyone,” added Toronto Mayor Olivia Chow.
According to both parties, every home in this portfolio will be a rental. The portfolio includes affordable, supportive, rent-geared-to-income, and rent-controlled housing. A healthy housing system needs the full range, and this partnership builds it through two complementary channels.
Non-market – through Build Canada Homes. Non-market housing is owned and operated by non-profit organizations, housing cooperatives, or government and public agencies, with the primary objective of ensuring affordability. Through Build Canada Homes, more than $310 million will be provided to advance nine housing projects on City-owned land. This investment will deliver nearly 1,900 rental homes – with more than 700 supportive and affordable – as well as more than 1,100 rent-controlled homes delivered by the non-market housing sector. To further unlock these projects, the City of Toronto will contribute public land at nominal value and more than $530 million in capital funding and financial incentives, including up to 99-year exemptions from municipal and school property taxes.
Market – through the Canada Mortgage and Housing Corporation’s (CMHC) Apartment Construction Loan Program. Market housing is built by private developers and rented at market rates. It is the largest source of new supply, adding homes at scale to ease pressure across the whole system. Through CMHC’s Apartment Construction Loan Program, over $1.8 billion will be provided in low-cost financing for nine housing projects. This investment will deliver over 3,700 rental homes, with more than 1,000 of them affordable. Up to $600 million in financing will also be allocated through the program so that more Toronto projects can move forward as they become ready.
“Every Canadian deserves a safe, affordable place to call home. Through our partnership with the City of Toronto, we are aligning investments and working together to accelerate the construction of much-needed housing. By reducing barriers and speeding up delivery, we are helping build more homes and creating stronger, more affordable communities across the country,” said Gregor Robertson, Minister of Housing and Infrastructure.
Featured image: (Government of Canada)
