Government of Canada and City of Toronto to build thousands of new rental homes

Canada NewsWire

TORONTO, Aug. 5, 2026

TORONTO, Aug. 5, 2026 /CNW/ -- In a rapidly changing world, a confident Canada is choosing to build. Canada's new government is building major projects – new ports, mines, highways, and energy corridors – that will unlock billions of dollars in new investment and connect Canadian businesses to new export markets around the world. In parallel, we are building strong communities, starting with homes Canadians can afford.

In Toronto, thousands of new homes have already been planned, permitted, and approved, but lack the financing to begin construction. Today, the Prime Minister, Mark Carney, joined the Mayor of Toronto, Olivia Chow, to announce a new partnership to unlock these projects and start building.

Over the next three years, Canada's new government, in partnership with the City of Toronto, will invest over $2.7 billion to build more than 18 housing projects across Toronto. 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.

Every home in this portfolio is 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 organisations, housing cooperatives, or government and public agencies, with the primary objective of ensuring affordability. Through Build Canada Homes, we will provide more than $310 million 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, we will provide over $1.8 billion 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. We will also allocate up to $600 million in financing through the program so that more Toronto projects can move forward as they become ready.

The entire portfolio also reflects how we're building:

Inclusively: The partnership will support a 100-unit, Indigenous-led supportive housing development at 15 Denison Avenue.
Sustainably: Two projects lead the way in showcasing Build Canada Homes' modern methods of construction, with a mass-timber, low-carbon build at 1113-1125 Dundas Street West and a volumetric-modular development at 805 Wellington. These methods build faster, cut waste, and reduce emissions by up to 22%, helping deliver sustainable, affordable housing at scale.
In solidarity with workers: The portfolio is expected to support roughly 2,100 jobs a year over its construction period.
Canadian: Projects will prioritise Canadian materials – including Canadian steel and lumber – under the government's Buy Canadian Policy.

This partnership with Toronto builds on the federal government's work over the past year to supercharge housing construction across the country. In September, we launched Build Canada Homes to build housing at scale and speed. Since its launch, Build Canada Homes has already committed to nearly 17,000 units through 17 partnerships, with more than 1,900 homes already under construction. We have eliminated the GST on homes up to $1 million for first-time homebuyers – saving Canadians up to $50,000 on the purchase of their first home. In Ontario, we are eliminating the full 13% of the HST for new homes, saving buyers up to $130,000 on the purchase of their home. In Toronto, those savings go even further. Through the Canada-Ontario Partnership to Build, we provided the City of Toronto with $1.5 billion to cut residential development charges by 40 to 60% – reducing the cost of a new single or semi-detached home by roughly $83,000.

In the face of global uncertainty, Canada's new government is building across the country to deliver the strong, safe, and affordable homes Canadians need to live the lives they want for themselves. We are working in the spirit of cooperative federalism – in full partnership with provinces, territories, and municipalities – to build a stronger, fairer, and more prosperous Canada for all.

Quotes

"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."
— The Rt. Hon. Mark Carney, Prime Minister of Canada

"Today's announcement shows what's possible when governments work together. I want to thank Prime Minister Mark Carney, Minister Gregor Robertson, and our federal partners for their commitment to building more homes in Toronto. 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."
— Her Worship Olivia Chow, Mayor of Toronto

"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."
— The Hon. Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada

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