On November 21, the 2023 Fall Economic Statement announced the renaming of the Rental Construction Financing Initiative (RCFi) to the Apartment Construction Loan Program with an additional funding of $15 billion in new loan funding, starting in 2025-26, to build more rental apartments, faster.
Funding is still available under the current RCFi. The federal government intends to announce reforms to the Apartment Construction Loan Program in early 2024.
The CMHC Apartment Construction Loan Program provides low cost funding to eligible borrowers during the most risky phases of product development of rental apartments (construction through to stabilized operations). The minimum loan is $1,000,000, and a maximum of up to 100% of Loan to Cost (for residential loan component).
The initiative focuses on standard rental apartment projects in Canada with general occupants where there is a need for additional rental housing supply.
Note: It does not support construction of niche housing types such as retirement homes, single room occupancy and student housing. To learn about funding for niche housing types, please visit MLI for Affordable & Market Rental Housing.