TORONTO, ONTARIO — Prime Minister Mark Carney and Toronto Mayor Olivia Chow announced a major housing partnership today, committing over $2.7 billion over the next three years to advance more than 18 housing projects across the city.
The initiative aims to deliver more than 5,600 new rental homes, with construction slated to begin on upwards of 4,500 units before the end of the year. The entire portfolio consists strictly of rental options—spanning affordable, supportive, rent-geared-to-income, and rent-controlled housing—to address needs across the entire urban housing spectrum.
“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,” Carney said.
Over $310 million will be invested to advance nine housing projects on City-owned land, delivering nearly 1,900 rental units. This includes over 700 supportive and affordable homes, alongside more than 1,100 rent-controlled properties. To facilitate this, the City of Toronto is contributing public land at a nominal value, paired with over $530 million in capital funding, financial incentives, and up to 99-year property tax exemptions.
Through the Canada Mortgage and Housing Corporation’s (CMHC) Apartment Construction Loan Program, the federal government is also providing over $1.8 billion in low-cost financing for nine market-rate projects. This channel will yield more than 3,700 rental homes—including over 1,000 affordable units—backed by an additional allocation of up to $600 million in standby financing for future ready projects.
Mayor Olivia Chow said, “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.”
The Toronto agreement builds on wider federal efforts under Build Canada Homes—which has already committed nearly 17,000 units across 17 partnerships since its launch in September—alongside broad tax relief measures. These include eliminating the GST on homes up to $1 million for first-time buyers, removing the full 13% HST for new homes in Ontario, and deploying $1.5 billion via the Canada-Ontario Partnership to cut Toronto residential development charges by 40% to 60%.