Ed Holder, Member of Parliament for London West, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), today announced mortgage loan insurance policies to facilitate the financing of student housing in Canada.
“Our government is dedicated to meeting the increased demand for student housing across the country” said Ed Holder, Member of Parliament for London West. “We’re helping developers and borrowers access competitive interest rates for the life of the mortgage, benefit from greater financing choices and lower renewal risk. Our government is supporting students and creating jobs in university and college communities across the country.”
The Government of Canada will help finance loans of up to 85 per cent of the lending value for the construction, purchase or refinancing of housing purposely built for students on or off campus through CMHC’s Mortgage Loan Insurance for multi-unit student housing. This initiative supports the housing needs of Canadian publicly funded educational institutions, including universities and colleges.
The demand for student housing is anticipated to continue to increase for an extended period as a result of changing demographics, forecasted enrolment figures and continued growth in international students.
“Today’s announcement is good news and will help developers in Canada respond to the housing needs of students,” said Ray Stanton, President of London Property Corporation.
The Government of Canada has taken additional measures to help Canadian families. As of August 1, 2009, new federal student financial assistance measures — the Canada Student Grants Program and the Repayment Assistance Plan — are helping students and families access postsecondary education and better manage their student loan debt. To find out more about how the Government of Canada is helping students achieve their educational goals, visit CanLearn.ca.
As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.
Randy Hoback, Member of Parliament for Prince Albert, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), along with MLA Darryl Hickie, on behalf of the Honourable Donna Harpauer, Minister of Social Services, and Jim Scarrow, Mayor of Prince Albert, today announced support for a local housing initiative for persons with disabilities.
Funding in the amount of $679,500 has been made available for the initiative through Canada’s Economic Action Plan, the federal government’s plan to stimulate the economy and create jobs during the global recession. The federal and provincial governments are contributing equally to this overall investment of $132 million under the amended Canada – Saskatchewan Affordable Housing Program Agreement. Other funding includes $400,000 from the Government of Canada’s Homelessness Partnering Strategy and $54,500 from the City of Prince Albert.
“Through Canada’s Economic Action Plan, our Government is helping Canadians during these tough economic times,” said MP Hoback. “Here in Prince Albert, this achievement gives a hand-up to low-income youth who need safe, affordable housing that meets their needs. This is also a good way to get the local economy moving because it puts construction workers and trades people to work quickly.”
“Our government is pleased to help provide safe, affordable housing for at-risk youth in the community of Prince Albert,” MLA Darryl Hickie said. “This aligns with our vision of putting vulnerable people first and helping them build better lives for themselves. Affordable housing is a key component of that.”
“Affordable housing is a community matter and this project is another example that, by working together, we can respond to the needs of individuals and families who are most vulnerable, by providing safe, secure and affordable housing for all,” said Mayor Jim Scarrow. “This project will provide these individuals with a home for a successful transition to living independently. Together we can build a greater city and province.”
Persons with disabilities often have difficulty finding housing that meets their specific needs. Canada’s Economic Action Plan provides $75 million over two years to build new rental housing for persons with disabilities. Overall, the Economic Action Plan includes $2 billion for new and existing social housing, plus up to $2 billion in loans to municipalities for housing-related infrastructure.
The eight-plex, located at 74 – 18th Street West in Prince Albert, will provide safe, affordable housing for very low-income youth with mental health and cognitive disabilities. Four of the units will be for those who are also homeless or at risk of homelessness. The residence is located within walking distance of the downtown core and a local drop-in centre, The Nest, which provides meals and programs that address independent living skills and employment initiatives.
Canada’s Economic Action Plan builds on the Government of Canada’s commitment in 2008 of more than $1.9 billion, over the next five years, to improve and build new affordable housing and help the homeless.
The amendment to the Canada – Saskatchewan Affordable Housing Program Agreement, which included funding under Canada’s Economic Action Plan, signed in May 2009, brought federal housing support of $74 million to the province. The Government of Saskatchewan will match that commitment for a total of $148 million to assist those in housing need and, in collaboration with other levels of government and community partners, to make various types of affordable housing programs possible. In Saskatchewan, federal-provincial housing programs are delivered through the Saskatchewan Housing Corporation.
Housing starts rebounded in the second half of 2009 and will strengthen in 2010, according to Canada Mortgage and Housing Corporation’s first quarter Housing Market Outlook, Canada Edition*.
Following a total of 149,081 units in 2009, housing starts are expected to be in the range of 152,000 to 189,300 units in 2010, with a point forecast of 171,250 units. In 2011, housing starts will be in the range of 156,400 to 205,600 units, with a point forecast of 175,150 units.
“Canadian housing markets will benefit from improving economic conditions and low mortgage rates,” said Bob Dugan, Chief Economist for CMHC. “As well, measures recently announced by the Government of Canada to support the long-term stability of Canada’s housing market will help moderate housing activity as some potential buyers will have to save a larger down payment or consider a less expensive home.”
Mr. Dugan also noted that the existing home market has shifted from a buyers’ market, at the beginning of 2009, to a sellers’ market. The relative lack of new listings for existing homes has pushed some of the demand into the new home market, which helps explain the forecast for higher housing starts activity in 2010.
The strong pace of MLS®1 sales seen in the second to fourth quarters of 2009 reflects, in part, activity that was delayed in the previous two quarters. The pace is not likely to be sustained as pent-up demand is exhausted and financing costs increase with anticipated higher interest rates later in 2010. As a result, existing home sales will be in the range of 455,350 to 509,900 units in 2010, with a point forecast of 486,700 units, and then move slightly lower in 2011 to be in the range of 426,300 to 494,600 units, with a point forecast of 469,950 units.
With an improved balance between demand and supply, the average MLS® price is expected to remain close to the average in the last quarter of 2009, for most of 2010, and then rise modestly in 2011.