Canada invests in new rental housing units in Toronto

TORONTO, Oct. 15, 2025 /CNW/ - Solving Canada's housing crisis requires immediate action to build up supply and bring down costs. The Government of Canada is stepping up with unprecedented investments to supercharge housing construction across Canada. To that end, the federal government launched Build Canada Homes, a new federal agency that will build affordable housing at scale, including transitional and supportive housing, deeply affordable and community housing, and affordable homes for the Canadian middle class.

As we build a strong Canadian housing sector, purposeful collaboration will be essential. That means working together with the private and non-profit sectors to bring down costs and build homes at a scale and pace not seen in generations. These investments are also providing Canadians with increased access to affordable and sustainable housing.

This also means taking actions through existing programs to deliver on solutions across the housing continuum. One such program is The Apartment Construction Loan Program (ACLP) provides fully repayable low-interest loans to catalyze the construction of more rental units for middle-class Canadians. Another key initiative is the Affordable Housing Fund (AHF), which provides funding through low-interest and/or forgivable loans or contributions to partnered organizations for new affordable housing and the renovation and repair of existing, affordable and community housing.

Today, the federal government made an investment of over $ 291 million for the construction of 705 housing units in Toronto through the ACLP and the AHF.

This project will feature 705 rental units, including 256 affordable units, with dedicated housing for women and children fleeing abuse, individuals with mental health or addiction challenges, and those with developmental disabilities. The development will include large indoor and outdoor amenity spaces, a licensed daycare, a community room, and retail

The announcement was made by Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament of Ajax, The Honourable Bill Blair, Member of Parliament of Scarborough Southwest, Olivia Chow, Mayor of Toronto, Parthi Kandavel, City of Toronto Councillor (Scarborough Southwest) at the site of the 777 Victoria Park project.

Budget 2025, to be tabled next month, will build on this momentum with further measures to lower costs for builders, catalyse private capital, and double the pace of homebuilding across Canada. Budget 2025 will spend less on government operations and reduce waste, so we can invest more to grow our economy, build more homes, and make life more affordable for you.

Quotes:

"We need to build more, build better and build bolder. Through investments in rental housing, our government is supporting those who need it most, here in Toronto and across the country. We are committed to strengthening communities through initiatives like this one." – The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada

"The Government of Canada is committed to working with our partners to rise to the challenge of building more housing in Canada. Through programs like the Apartment Construction Loan Program, and the Affordable Housing Fund we are taking action to increase the supply of new rental housing by investing more than $291 million in the construction of 705 homes in Toronto. This is more than just construction, it's about creating opportunities for individuals and families to thrive, to grow, and to build their future with stability and dignity." – Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament of Ajax 

"Together, with our partners, we are building more than just homes, we are creating spaces where families and individuals can thrive. With programs like the Apartment Construction Loan Program and the Affordable Housing Fund, we are investing in a future where everyone has access to a safe, stable place to call home. This is a commitment to the strength of our neighborhoods, and to the belief that when we work together, we build a Canada strong." The Honourable Bill Blair, Member of Parliament of Scarborough Southwest

"Creating more affordable housing means creating stronger communities across Toronto. With support from the federal government and a $30.2 million waiver in development fees and charges from the City, we are breaking ground on 705 new homes, including 449 market rental units and 256 affordable rental homes. This transit-oriented, mixed-use development at Victoria Park Station will also include a new child-care centre, community space and public amenities. Together, we are building a more affordable and inclusive city for all Torontonians."– Mayor Olivia Chow

"It's an honour to join our partners and community members to mark the start of major construction at 777 Victoria Park Avenue. Thanks to support from the federal government, this former parking lot will be transformed into a vibrant, transit-oriented community featuring affordable housing, a new childcare centre, and other essential amenities. On behalf of CreateTO, I'm proud to stand with the Government of Canada, the City of Toronto and our development partners as we continue to re-purpose public land for public good."- Vic Gupta, CEO, CreateTO

Quick facts:

• The $55 billion Apartment Construction Loan Program (ACLP) is providing low-cost financing to support more than 131,000 new rental homes across Canada by 2031 – 2032.
  • The ACLP provides stable supply of purpose-built rental housing is essential for more people in Canada to have access to housing that meets their needs.
  • As of June 2025, CMHC has committed $24.9 billion in loans through ACLP to support the creation of more than 63,500 rental homes.
  • It is one of many programs and initiatives under the National Housing Strategy designed to help address housing needs across the housing continuum.
  • It complements other NHS initiatives that focus on funding affordable housing units for lower-income households.
  • Budget 2024 announced enhancements to the ACLP which includes the program being extended from 2027 – 2028 to 2031 – 2032. The enhancements will allow applicants to apply for funding for on- and off-campus student housing to support post-secondary educational institutions as well as independent seniors housing. There are no longer minimum requirements relating to energy efficiency and accessibility, instead applicants will benefit from making stronger commitments to desired rental supply and social outcomes.
• The Affordable Housing Fund (AHF) provides funding through low-interest and/or forgivable loans or contributions to partnered organizations for new affordable housing and the renovation and repair of existing, affordable and community housing. This is a $16.1 billion program that gives priority to projects that help people who need it most, including women and children fleeing family violence, seniors, Indigenous Peoples, people living with disabilities, those with mental health or addiction issues, Veterans, and young adults.
  • As of June 2025, the Government of Canada has committed $12.91 billion to support the creation of over 50,300 units and the repair of over 174,600 units through the Affordable Housing Fund.
  • A dedicated $50 million stream under the National Housing Co-Investment Fund (now AHF) was dedicated to support Black-led organizations to build housing, as well as more affordable housing for Black renter households.
  • On September 19, 2025, the Government of Canada announced $1.5 billion top-up in loans for the Affordable Housing Fund's New Construction Stream, to support the creation of over 5,000 new units starting in 2025-26. Additionally, the Affordable Housing Fund's Rapid Housing Sub-Stream will be accelerated, by pulling $385 million in funding from future years.
• The federal government also recently released 50 downloadable technical design packages for the Housing Design Catalogue, featuring standardized housing designs for rowhouses, fourplexes, sixplexes and accessory dwelling units across the country. These designs for gentle density help builders and communities reduce the time and cost of developing construction plans, helping to accelerate approvals and construction starts. It will make it easier to add new housing options in established neighbourhoods and prioritizes wood-frame construction that supports local jobs and grows our economy. 
• Funding provided for 777 Victoria Park is as follows:
  • $279.6 million in low-interest repayable loans from the Apartment Construction Loan Program
  • $11.5 million in contributions through the Affordable Housing Fund
  • $30.2 million in funding and waivers of development fees and charges from the City of Toronto.

Additional information:

• Visit canada.ca/housing for the most-requested Government of Canada housing information.
• CMHC plays a critical role as a national facilitator to promote stability and sustainability in Canada's housing finance system. Our mortgage insurance products support access to homeownership and the creation and maintenance of rental supply. We also actively support the Government of Canada in delivering on its commitment to make housing more affordable. Our research and data help inform housing policy. By facilitating cooperation between all levels of government, private and non-profit sectors, we contribute to advancing housing affordability, equity, and climate compatibility. Follow us on X, YouTube, LinkedIn, Facebook and Instagram.

SOURCE Canada Mortgage and Housing Corporation (CMHC)

Contacts: Renée LeBlanc Proctor, Office of the Minister of Housing and Infrastructure, [email protected]; Media Relations, Canada Mortgage and Housing Corporation, [email protected]