Canada Mortgage Bond expansion will help boost rental supply, experts say

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 67 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 63%

Property Property Headlines News

Property Property Latest News,Property Property Headlines

Ottawa's expansion of the program will help bring more rental housing onto the market, experts say, although it will be years before the supply comes online.

The federal government's expansion of the Canada Mortgage Bonds Program will help bring more rental housing onto the market, analysts say.

"It's not enough for us to simply address one project at a time. We need to change the way that homes get built in Canada, including the financial equation that builders need to overcome," Housing Minister Sean Fraser said at a press conference last week. "This is really good for purpose-build rental. It's been a part of the market that hasn't made sense for years, and that's why condos have taken over the market... more support in rental means more supply in rental, which will help make rental more affordable moving forward."

But it will take years before the supply hits the market, says Ron Butler, a mortgage broker and owner of Toronto-based brokerage Butler Mortgage. Construction on new buildings takes around three years, he says, and it can take between a year and two years to get all the approvals in place before projects can even start, depending on municipal regulations.

"At the end of five years, we'll have batches of new purpose-built rentals for people to rent at rational prices."TORONTO — From ultra-low interest rates that led to a huge spike in real estate demand to the speed with which interest rates shot up to levels not seen in a generation, it’s been hard to keep up with the shifting landscape for mortgage holders.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in PROPERTY

Property Property Latest News, Property Property Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Homeowners brace for mortgage payment shock amid higher-for-longer rate outlookTORONTO, Australia — From ultra\u002Dlow interest rates that led to a huge spike in real estate demand to the speed with which interest rates shot up to levels not…
Source: financialpost - 🏆 7. / 85 Read more »

Homeowners brace for mortgage payment shock amid higher-for-longer interest ratesMany homeowners who locked in low rates years ago are bracing themselves for financial pain as their mortgage comes up for renewal. Read on.
Source: fpinvesting - 🏆 43. / 63 Read more »

Homeowners brace for mortgage payment shock amid higher-for-longer interest ratesMany homeowners who locked in low rates years ago are bracing themselves for financial pain as their mortgage comes up for renewal. Read on.
Source: financialpost - 🏆 7. / 85 Read more »

UK House Prices Flat in September as Mortgage Crunch EasesUK house prices held up better than forecast in September as the recent surge in mortgage rates showed signs of easing.
Source: BNNBloomberg - 🏆 83. / 50 Read more »