Accelerating the supply of affordable housing by investing in Build Canada Homes and the Affordable Housing Fund

TORONTO, Sept. 19, 2025 /CNW/ - Far too many Canadians – particularly young Canadians – are struggling to find homes they can afford. Canada's new government is stepping up with a bold new approach and unprecedented investments to increase the supply of affordable housing in Canada.

Today, the Honourable Adam van Koeverden, Secretary of State for Sport and Member of Parliament for Burlington North—Milton West, highlighted the federal government's launch of Build Canada Homes—a new federal agency to build and finance affordable housing at scale. Build Canada Homes will become the federal government's new one-stop-shop for affordable housing.

As responsibility for affordable housing programs moves to the Build Canada Homes, the Secretary of State also highlighted a top-up of $1.5 billion in loans to the Affordable Housing Fund's New Construction Stream, announced today by the Honourable Gregor Robertson, Minister of Housing and Infrastructure. Additionally, the Affordable Housing Fund's Rapid Housing Sub-Stream will be accelerated, by pulling forward $385 million in funding from future years. 

This funding will be delivered by Canada Mortgage and Housing Corporation (CMHC), to ensure that affordable housing projects have the support they need during the transition. As Build Canada Homes ramps up, CMHC will continue to deliver these programs to ensure there are no gaps in service.   

These transitional measures will lead to thousands of affordable housing units being built, bringing the total federal investment in the Fund to approximately $16 billion. The top-up will support the quick building of these new affordable homes, prioritizing projects that are shovel-ready and in the existing pipeline of applications.

To address the challenges Canadians are facing and to accelerate the supply of housing, Canada's new government launched Build Canada Homes. The new federal agency will accelerate public-private co-operation and modern methods of construction as it catalyzes the growth of Canada's housing industry. Build Canada Homes will partner with industry, other orders of government, and Indigenous communities to build affordable housing at scale and at speed.

Build Canada Homes will help fight homelessness by building transitional and supportive housing – working with provinces, territories, municipalities, and Indigenous communities. It will build deeply affordable and community housing for low-income households, and partner with private market developers to build affordable homes for the Canadian middle class.

The launch of Build Canada Homes, its initial investments and top-up to CMHC's Affordable Housing Fund, are part of the government's broader effort to double the pace of housing construction over the next decade. These efforts will ensure that communities across Canada benefit from more affordable housing and a stronger, more sustainable housing system.

Quotes

"The housing crisis affects us all, including right here in Toronto. The Government of Canada is launching Build Canada Homes to fast-track building more homes that are safe and affordable. By leveraging Canadian materials, know-how, and labour we will not only address the housing crisis for our communities, we will also make them more livable and prosperous."

The Honourable Adam van Koeverden, Secretary of State for Sport and Member of Parliament for Burlington North—Milton West

Quick Facts

• On September 14, 2025, Build Canada Homes launched as a Special Operating Agency within Housing, Infrastructure and Communities Canada (HICC). In the new year, Build Canada Homes will evolve into a standalone federal entity reporting to the Minister of Housing and Infrastructure.
• Build Canada Homes will focus on increasing the supply of affordable housing. Alongside this effort, Canada Mortgage and Housing Corporation (CMHC) will continue to deliver on its mandate to contribute to the well-being of Canada's housing system through existing programs such as the Apartment Construction Loan Program and Mortgage Loan Insurance products.
• Canada Mortgage and Housing Company (CMHC) will continue to support Canada's market housing sector, deliver key programming and provide valuable market insights and industry-leading research.
• CMHC will continue to deliver existing affordable housing programs until current funding envelopes are fully exhausted.
• The $1.5 billion top-up in loans for the Affordable Housing Fund's New Construction Stream, starting in 2025-26, will support the creation of over 5,000 new units.
• The Affordable Housing Fund provides capital to partnered organizations for new affordable housing and the renovation and repair of existing affordable and community housing. Funds are provided as low-interest and/or forgivable loans and contributions.

Associated Links

Prime Minister Carney launches Build Canada Homes to supercharge homebuilding across the country

Build Canada Homes

Affordable Housing Fund

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SOURCE Department of Housing, Infrastructure and Communities

Contacts: For more information (media only), please contact: Mohammad Hussain, Director of Communications, Office of the Minister of Housing, Infrastructure and Communities, [email protected]; Media Relations, Housing, Infrastructure and Communities Canada, 613-960-9251, Toll free: 1-877-250-7154, Email: [email protected]