Toronto securing $2.7 billion federal investment for 5,600 new rental homes

Toronto is receiving up to $2.7 billion in federal funding to accelerate rental housing supply, the City and Government of Canada announced Wednesday. The City is adding $703.7 million in its own funding and financial incentives, together delivering 5,600 rental homes across neighbourhoods.

The federal commitment breaks into two streams. The Apartment Construction Loan Program is providing over $1.8 billion in low-cost financing for nine housing projects delivering more than 3,700 rental homes. A second federal initiative, Build Canada Homes, is contributing $310 million to advance more than 1,800 rental homes across nine City-led projects on City-owned land. These nine projects will mix affordable, rent-geared-to-income, rent-controlled and supportive homes through partnerships with public, non-profit and Indigenous housing providers.

Prime Minister Mark Carney said construction will begin on roughly 4,500 new homes by the end of the year. The announcement follows a June agreement where the City, Province and federal government committed $1.5 billion to reduce development charges by 40 to 60 per cent for more than three years, a move intended to stimulate housing construction while funding infrastructure.

The City is also launching a new phase of its Purpose-Built Rental Housing Incentives Stream, enabling development charges to be deferred indefinitely for projects with a minimum of 20 per cent affordable housing. Together, these initiatives aim to create conditions for faster home delivery while supporting long-term affordability across Toronto.