Latest news with #CMHC
CBC
a day ago
- Business
- CBC
Toronto to get $80M for affordable housing in Bedford Park from federal government
Social Sharing The federal government is spending over $80 million to build 159 new rental homes in Toronto's Bedford Park neighbourhood. Housing Minister Gregor Robertson announced the funding at a news conference Monday, saying the financing comes from the government's Apartment Construction Loan Program (ACLP), which aims to support construction of more than 131,000 rental homes across Canada by 2031-32. "Our goal will double the rate of home building in Canada with an industry that prioritizes Canadian technology, Canadian skilled workers, and Canadian lumber," Robertson said. The minister added that the cost of construction and of land in cities like Toronto, paired with no incentives to build rental housing, had "flatlined" the market. Funding under ACLP focuses on building affordable housing units for lower-income families under the National Housing Strategy, which is a more than decade-long project to build new homes across the country, the Canada Mortgage and Housing Corporation (CMHC) said in a news release Monday. The incentives offered by the ACLP program are expected to boost building of affordable homes, Robertson said. Federal government loans $650M for rental units near Scarborough Town Centre 12 days ago The federal government is providing a $650-million loan to support the construction of 1,285 new rental units in Scarborough. As CBC's Britnei Bilhete explains, advocates say it's a welcome addition to Toronto's housing stock but affordability is a major concern. The 159 new homes will be in a nine-storey building expected to be built by fall 2027, CMHC said in the news release. 'The kind of housing Toronto needs': developer Just over a quarter of the new units, roughly 43, will be built for people who fall below Toronto's median household income. According to CMHC, that was $85,000 after taxes in 2021. The building is close to public transit and a "vibrant" community with bakeries, shops and restaurants, CMHC said. Loans through ACLP are low-interest and no longer include minimum requirements relating to energy efficiency, the CMHC release said. Such programs are "essential" because they allow builders to include affordable rental units in an economically feasible manner, said Scott Cryer, chief financial officer of Medallion, the real estate and development corporation that will build the rentals. Cryer is also the rental operator for the new building. "This is the kind of housing Toronto needs right now, high quality, mixed-income rental housing, and we plan to build more of it in Toronto," Cryer said. 'More opportunity … to find homes' Medallion says it has built over 5,300 units in Ontario over the past two decades. WATCH | What you need to know about Kensington Market's new affordable housing project: What you need to know about Kensington Market's new affordable housing project 2 months ago The financing from the federal government will provide affordable housing for decades and simultaneously create more jobs for people, Vince Gasparro, MP for Eglinton—Lawrence, said at the Monday news conference. "The increase in housing supply means more opportunity for my constituents to find homes that meet their needs," Gasparro said. The federal government has spent around $23 billion through the ACLP to support more than 59,000 rental units as of March 2025. It's expecting to spend $55 billion total by the end of 2032, CMHC said in the news release.
CTV News
3 days ago
- Business
- CTV News
‘We're a little bit more unique': CMHC predicts housing dip, but Windsor-Essex staying resilient
Take a look at Windsor's updated housing outlook for July. CTV Windsor's Ricardo Veneza has more. Take a look at Windsor's updated housing outlook for July. CTV Windsor's Ricardo Veneza has more. The latest forecast for the housing market from the Canada Mortgage and Housing Corporation (CMHC), particularly for Ontario, is a dour one — but Windsor-Essex seems to be somewhat of an outlier. On Thursday, the CMHC released its 2025 Housing Market Outlook summer update forecasting price drops of 2 per cent across the country and expecting even larger drops in Ontario and B.C. 'Vancouver and Toronto seem to always skew some of our statistics,' said Julianna Biondo, president of the Windsor-Essex County Association of Realtors (WECAR). 'I'm not saying that Windsor is immune to any of that for sure but, definitely we're a little bit more unique and niche in our market.' The report points to its new scenario based on Canada-U.S. trade tariff information as of June 26 and predicts tariffs will peak in the second half of the year. That will continue to impact the Canadian economy, producing a mild recession, and contributing to three key factors leading to the housing market slowdown: price pressures, lower demand, and uncertainty. 'I haven't experienced any get out of dodge, you know, everybody [saying] 'Oh, my gosh the sky is falling' I haven't experienced that. But I think there is some hesitancy,' said Biondo. 'We do have a drop in sales for sure.' Windsor is taking the brunt of the trade war, evidenced by Statistics Canada's June jobs report putting the city firmly at the top of the unemployment pile with a jobless rate of 11.2 per cent. But it seems the real estate market in Windsor-Essex is proving resilient — at least in the more competitive sub-$600,000 price bracket where most homes are bought and sold. 'Buyers are just being a little bit more choosy,' said Biondo. 'They're being a little bit more particular and they're getting the opportunity to get their conditions met, which is wonderful. And that is a key element to having a stable environment for a market.' WECAR's June report showed an increase in the average sale price of 2.97 per cent even as home sales dipped again 5.23 per cent and new listings climbed by 11.86 per cent. The CMHC forecast indicates an expected recovery in 2026, even as unemployment is expected to continue to climb come the fall of 2025 and inflation is predicted to crest 3 per cent by mid-2026 due to the trade environment and connected geopolitical events. Come next year, Biondo expects that will mean steadier price increases in the Windsor-Essex market as the broader real estate landscape recovers from a tariff-induced downturn. 'We're still very much in a seller's market in this area,' said Biondo of the sub-$600,000 category. 'Let's let this trade war play out. Everybody knows that this will come to terms at some point.' The other drag on the market, according to the report, is the sluggish home construction much of the country is seeing, particularly in Ontario and British Columbia, where starts are predicted to see even further declines. In those provinces, CMHC points to high housing prices, rising construction costs, and lower investor confidence as factors weighing down the sector with some developers delaying or cancelling projects and missing presale targets as unsold inventory rises — all challenges expected to persist for the rest of 2025.
CTV News
4 days ago
- Business
- CTV News
Ontario mortgage delinquencies on the rise and could climb higher still, experts warn
A real estate sign is displayed in front of a house in Toronto in this file photo. THE CANADIAN PRESS/Evan Buhler Mortgage delinquencies appear to be on the rise in both Ontario and the Greater Toronto Area and the numbers could get worse as Canada navigates choppy economic waters, experts say. According to data prepared for the Canada Mortgage and Housing Corporation (CMHC) by Equifax Canada, mortgage delinquencies rose to 0.22 per cent in Ontario for the first quarter of this year. That's up from 0.15 per cent in the first quarter of 2024 and 0.09 per cent in the first quarter of 2023. In Toronto, the mortgage delinquency rate hit 0.23 per cent for the first quarter of 2025. That compares to 0.14 per cent for the first quarter of 2024 and 0.08 per cent for the first quarter of 2023. Specifically, the data tracks the volume of 90-day mortgage delinquencies, which include defaults, but can also refer to late payments. While the rate might not be terribly bad by historical standards, mortgage delinquencies haven't been that high in Toronto since early 2013 and Ontario hasn't seen levels this high since 2016. Equifax reported in February that more than 11,000 mortgages in Ontario recorded a missed payment in the last quarter of 2024. The firm warned that Ontarians are struggling with their mortgages and that mortgage holders are struggling with other forms of debt as well. 'It's concerning,' says Maria Solovieva, an economist at TD Bank. Interest rates, uncertainty are factors Experts say there are two main reasons why mortgage delinquencies are on the rise now. First, the province is seeing a wave of mortgage renewals by people who bought homes with rock-bottom borrowing costs during the pandemic and are now having to renew at higher rates. But in addition to low interest rates, people also had forced savings during lockdown, Solovieva points out. 'So they had these extra funds available for them to put towards repayment,' she says. In that sense, it was predictable that some people might have difficulty making their payments now. 'There's definitely a rise in (delinquencies) associated with coming back to normalcy,' Solovieva says. Jordan Nanowski, CMHC's lead economist for the Greater Toronto Area, agrees. 'I think a rise in delinquencies is expected given that there's a lot of mortgage renewals taking place, so (that) reflects higher mortgage costs,' Nanowski says. The second thing driving up delinquencies, he says, is economic uncertainty finding its way into the labour market. 'There's a lot of economic uncertainty that in itself is already manifesting certain negative impacts,' Nanowski says. 'Especially in certain industries, we're seeing some job cuts and that could be contributing as well. So it's kind of a confluence of the two.' While the data is not clear on this point, Nanowski says the softening of the condo market could well be playing a role in delinquencies if people looking to offload those properties find they are unable to get their money out because of the weaker market. 'There definitely could be individuals that are, let's say, a little bit more tied to their property and if they have issues making payments and they're looking to sell, it's not that easy to sell,' he says. 'So in that type of environment, they might be more likely to be in arrears for longer. So market dynamics are definitely playing a factor there.' Ontario vulnerable as trade war remains unresolved Both Solovieva and Nanowski agree that going forward, Ontario could be in for a rough ride if the ongoing trade war with the United States, sparked by U.S. President Donald Trump's tariff threats, hits the job market. 'We do expect that Ontario specifically will be hit by the trade war a little bit more,' Solovieva says. 'The unemployment rate is already at 7.9 and 7.8 per cent between the two months in May and in June (respectively), so it's larger than average in Canada.' Nationally, unemployment sat at 6.9 per cent in June. 'The economic uncertainty and impacts of potential tariffs could impact employment for a lot of individuals, and that could increase mortgage arrears,' Nanowski says. He points out areas that support industries targeted by the U.S. for tariffs are particularly vulnerable. 'Windsor is probably the most exposed. Same with case Kitchener, Cambridge, Waterloo, St. Catharines, Niagara, Hamilton for steel,' Nanowski says. 'Those are places that mortgage arears might pop up a bit higher if trade tensions and economic uncertainty persist, right? And we're already seeing a bit of impact there. You're seeing some job losses in certain sectors that are more unique to that area.' CMHC could not provide the real number of mortgage delinquencies in Ontario. However, of the nearly 7 million outstanding mortgages in Canada, 0.22 per cent were in arrears in the fourth quarter of last year, according to the corporation. That translates into 15,259 mortgages across the country. Nanowski adds that while the diversified labour market within the Greater Toronto Area is something of a bulwark around Toronto, the GTA is still vulnerable in some places, such as Oshawa, where thousands of jobs are tied to the auto industry. But while there's reason for concern, Solovieva points out that for the time being, mortgage delinquencies still sit at less than a quarter of a percent. 'So it just tells you that, yes, there is strain, especially in those very not affordable regions,' she says. 'But it's not something that will basically, at this point, be a breaking point.' Are you having difficulty making your mortgage payments? CP24 and CTV News Toronto want to hear from you. Email us at torontonews@ with your name, general location and phone number in case we want to follow up. Your comments may be used in a CP24 or CTV News story.
Yahoo
4 days ago
- Business
- Yahoo
Digby affordable housing project on hold as federal funding dries up
A plan by a Digby, N.S., non-profit to build affordable housing on the site of a former downtown motel is at a standstill as the group awaits word on federal funding. The Digby & Area Housing Coalition Society purchased the former Siesta Motel in 2022 with an aim to turn the existing building into affordable housing, coalition chair Nancy Robinson said. Subsequently, it was decided that it would be more cost efficient to demolish the motel and build 34 units on the site. The units would serve seniors and other vulnerable people facing Digby's severe housing shortage. Robinson said the units would be genuinely affordable, with tenants spending no more than 30 per cent of their income on rent, including utilities. She said they already have many applicants for the units. After securing $300,000 in funding including provincial grants for design work and municipal approvals, the $11.2-million project was construction-ready this spring and awaiting the release of federal funds. After waiting for the outcome of the federal election, Robinson said the group was told the Canada Mortgage and Housing Corporation's affordable housing fund, their expected funding source, had been depleted. 'That's a lot of money' CMHC said in an email to CBC that it's affordable housing fund "has attracted significant interest and success, resulting in numerous high-quality applications," but did not indicate if and when it will be replenished. Robinson said the devastating news has left the project in limbo. "That's a lot of money and it's very difficult to make that up," she said. "It's nerve-racking, not just because of the number of people that are waiting for housing, desperately waiting for housing, and Digby where there's really basically nothing available and certainly nothing affordable." Robinson said the delay leaves the volunteer organization having to cover significant costs, including the $2,600-monthly mortgage payment on the vacant property. The delay couldn't come at worse time for Digby, she said. The community's housing shortage has reached emergency levels. She said the funding issue appears linked to broader changes in federal housing policy. While Ottawa works to implement its new housing plan, she said existing programs like the affordable housing fund have been allowed to lapse. Robinson said she understands the need for systemic reform, but immediate action is needed to help people in desperate need of appropriate housing. The coalition has launched a local fundraising campaign and is exploring alternative financing options. Chris D'Entremont, the Conservative MP for Acadie-Annapolis, which includes Digby, said it was strange the program was still taking applications even though it said its funds have been depleted. He said billions of dollars have gone into the fund, which has existed since 2018. "We're hoping that as the fall rolls around, of course, there's going to be a budget coming," he told CBC Radio's Information Morning Nova Scotia. Finance Minister François-Philippe Champagne "has said that there will be a program coming, that there should be funding. So we're hoping it will be topping this off." With demolition delayed from its planned May 2025 start, Robinson said completion could now slip to late 2026. Meanwhile, for the applicants the wait continues with no clear resolution in sight. "They are desperate. It's palpable. It's tragic, really," Robinson said. MORE TOP STORIES
CBC
4 days ago
- Business
- CBC
Digby affordable housing project on hold as federal funding dries up
A plan by a Digby, N.S., non-profit to build affordable housing on the site of a former downtown motel is at a standstill as the group awaits word on federal funding. The Digby & Area Housing Coalition Society purchased the former Siesta Motel in 2022 with an aim to turn the existing building into affordable housing, coalition chair Nancy Robinson said. Subsequently, it was decided that it would be more cost efficient to demolish the motel and build 34 units on the site. The units would serve seniors and other vulnerable people facing Digby's severe housing shortage. Robinson said the units would be genuinely affordable, with tenants spending no more than 30 per cent of their income on rent, including utilities. She said they already have many applicants for the units. After securing $300,000 in funding including provincial grants for design work and municipal approvals, the $11.2-million project was construction-ready this spring and awaiting the release of federal funds. After waiting for the outcome of the federal election, Robinson said the group was told the Canada Mortgage and Housing Corporation's affordable housing fund, their expected funding source, had been depleted. 'That's a lot of money' CMHC said in an email to CBC that it's affordable housing fund "has attracted significant interest and success, resulting in numerous high-quality applications," but did not indicate if and when it will be replenished. Robinson said the devastating news has left the project in limbo. "That's a lot of money and it's very difficult to make that up," she said. "It's nerve-racking, not just because of the number of people that are waiting for housing, desperately waiting for housing, and Digby where there's really basically nothing available and certainly nothing affordable." Robinson said the delay leaves the volunteer organization having to cover significant costs, including the $2,600-monthly mortgage payment on the vacant property. The delay couldn't come at worse time for Digby, she said. The community's housing shortage has reached emergency levels. She said the funding issue appears linked to broader changes in federal housing policy. While Ottawa works to implement its new housing plan, she said existing programs like the affordable housing fund have been allowed to lapse. Robinson said she understands the need for systemic reform, but immediate action is needed to help people in desperate need of appropriate housing. The coalition has launched a local fundraising campaign and is exploring alternative financing options. Chris D'Entremont, the Conservative MP for Acadie-Annapolis, which includes Digby, said it was strange the program was still taking applications even though it said its funds have been depleted. He said billions of dollars have gone into the fund, which has existed since 2018. "We're hoping that as the fall rolls around, of course, there's going to be a budget coming," he told CBC Radio's Information Morning Nova Scotia. Finance Minister François-Philippe Champagne "has said that there will be a program coming, that there should be funding. So we're hoping it will be topping this off." With demolition delayed from its planned May 2025 start, Robinson said completion could now slip to late 2026. Meanwhile, for the applicants the wait continues with no clear resolution in sight. "They are desperate. It's palpable. It's tragic, really," Robinson said.
