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.
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