(Ottawa) The Trudeau government wants to further stimulate housing construction by increasing the annual limit on Canada’s mortgage bonds by $20 billion. This margin must be used to finance mortgage loans for rental properties.
The issuance limit for mortgage bonds will therefore increase from 40 billion to 60 billion. This measure aims to generate financing for manufacturers through the sale of these bonds to investors. It has no impact on the government budget.
Finance Minister Chrystia Freeland made the announcement Tuesday afternoon alongside Housing Minister Sean Fraser, Innovation Minister François-Philippe Champagne and several other Cabinet members.
She estimates that this new measure will make it possible to build 30,000 new homes per year. The projects, insured by the Canada Mortgage and Housing Corporation, must include at least five rental apartments.
This announcement follows that of eliminating the sales tax on goods and services (GST) for the construction of new buildings. The government wants to allow builders to obtain financing to move forward.
Bill C-56, tabled last week, increases the GST rebate from 36% to 100% for buildings whose construction began on September 14 or will be done no later than December 31, 2030.
Further details will follow.