Canadian Government Boosts Mortgage Bond Program to Spur Apartment Construction Amid Housing Crunch
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Finance Minister Chrystia Freeland announced a 50% increase in Canada's mortgage bond program to $60 billion annually to boost apartment construction and address surging housing costs.
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The government is still weighing whether to phase out the mortgage bond program, but the increase reverses its earlier proposal to end it.
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The move aims to stimulate construction of 30,000 more rental apartments per year amid pressure to improve housing affordability.
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Around 40% of the mortgage bond program's buyers are international investors drawn by Canada's AAA credit rating.
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The policy reversal has sown confusion among bond investors about the program's future, making the bonds less appealing.