OTTAWA (CU)_Over the past year, there was a rise in real estate demand, particularly on account of low interest rates, along with pandemic-induced lockdowns which emphasised the need for bigger homes. This was the case in many countries around the world, including Canada. However, according to experts, this record surge in demand pushed home prices further in North American nation, in terms of both incomes and rent, and as a result buyers have found themselves priced out of the market. This has been further exacerbated by mortgage rates beginning to tick up with bond yields. As a result, Canada, one of the hottest housing markets in the world, is now seeing back-to-back decline in sales and slowing price gains.
Against such a background, the government of Canada has decided to join forced with the City of Ottawa and the Ottawa Community Housing Corporation (OCH) to make a major investment in housing in the capital city. Accordingly, on Thursday (24 June), Canada’s Minister responsible for Canada Mortgage and Housing Corporation (CMHC), Ahmed Hussen, together with the Minister of Infrastructure and Communities, Catherine McKenna, and the Member of Parliament for Ottawa–Vanier, Mona Fortier, announced a $165.6 million financial commitment to support more than 11,000 housing units, while improving tenant health and safety, comfort and overall quality of life across the region. According to a statement issued by the CMHC, of this sum, $65.4 million will be a forgivable loan for capital repairs which will take place over a period of nine years.
“Today’s announcement is not only about ensuring Ottawans have a roof over their heads, it’s about making sure they have a home,” Minister Hussen said. “Thanks to this investment through the National Housing Strategy, we are better able to support vulnerable populations with an affordable place that meets their needs.” He noted that community projects of this kind help create new jobs and stimulate the economy, while providing access to safe and affordable homes, and improving the quality of life of the public.
Following the announcement, Minister McKenna said: “Every Canadian deserves a safe and affordable place to call home. This investment of $165.6 million in affordable housing in Ottawa will improve and extend the lifespan of 11,000 community housing units, positively impacting 22,000 tenants through energy efficient retrofits, upgraded kitchens, floors and more accessible units.” She further noted that this partnership with between the federal government and the city of Ottawa will help in addressing critical housing needs in the city, adding that the initiative is “An excellent example of the National Housing Co-Investment Fund at work!”
