Housing commitments in budget include tripling non-market options, new exemption to ban on foreign buyers

Prime Minister Mark Carney’s second budget made a series of new promises around supportive housing to end homelessness, while bolstering existing programs like the Build Canada Homes program.

The government also extended Canada’s foreign home buyer ban, although it will introduce a notable exception for new builds.

Marc Lee, senior economist for the Canadian Centre for Policy Alternatives, said he was encouraged to see new commitments around housing access and affordability, especially after last year’s budget largely focused on launching the government’s new housing agency, Build Canada Homes.

“It looks like they’re doing the right things,” said Mr. Lee, who added that the language around tripling non-market housing in a decade was promising. He also noted that ensuring supportive housing for unhoused people would include mental health support.

Here are threenotable housing commitments in the budget.

Building supportive housing to end homelessness and bolstering Build Canada Homes

Mr. Carney’s commitment to working toward ending homelessness in the next decade is new in this budget, according to Alexi White, director of systems change at the charitable foundation Maytree.

The Prime Minister’s predecessor, Justin Trudeau, made similar promises without meaningful action, Mr. White said, but Mr. Carney is putting significant amounts of money toward the goal, with $5-billion promised in the long term.

The funds would create supportive housing projects that would include health care, mental health and addictions support. The money is part of the government’s overall goal to triple non-market housing development in the next decade.

“There’s a lot of good suggestions that they are willing to do things differently and that they have a stronger plan this time around,” said Mr. White.

Mr. White noted that the commitments will require buy-in from provincial governments, who would need to provide funding on the ongoing operating expenses for these projects, including providing health care.

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Meanwhile, the budget proposed the renewal of the Canada Housing Benefit, which provides monthly assistance for rental payments directly to low-income Canadians. The 10-year commitment would cost $1.7-billion over the first three years, and $3.9-billion in future years.

Mr. White said the continuation of the program is important, but the commitments in the budget will only sustain the people currently receiving support, rather than expanding it to more people.

The budget also allocated just under $2-billion toward preparing federal lands for housing developments by building roads, water and other infrastructure.

Budget 2026 is proposing $13-billion in new investments for Build Canada Homes, bringing its total funding to $45-billion.

Foreign Homebuyer Ban

Mr. Lee said it was a ‘surprise move’ to see the government extend the foreign buyer ban, which was previously set to expire Jan. 1, 2027.

However, it’s being renewed with a major new exemption that will allow foreign buyers to purchase newly built residential properties.

“That’s a pretty big loophole,” said Mr. Lee.

“Especially given that there are so many unsold condos on the market, that will probably help the development industry.”

The Canadian Home Builders’ Association welcomed the new iteration of the ban.

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“This would help protect housing affordability by keeping the vast majority of the existing housing market available for Canadians, while unlocking additional investment in new housing supply,” said CHBA interim CEO Frank Lohmann in a written statement.

However, Mr. Lee said he believes that the exemption of new homes in the ban will ultimately hurt affordability around new builds.

In general, he said a foreign home buyer ban is popular with the electorate and a policy that he agrees with.

Making it easier to finance multiplexes

The budget announced new measures to make it easier for developers to get financing for multiplexes.

The changes will make it easier to obtain mortgage insurance on developments that are three and four units and permit private mortgage insurers to offer loan insurance on developments as large as 50 units.

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The new rules will eliminate maximum property values and the requirement to live within one of the multiplex units to access mortgage insurance.

Mr. Lohmann said the new rules are encouraging.

“This should help improve construction financing for developers or homeowners who want to redevelop their homes,” said Mr. Lohmann.

The program will come into effect Feb. 1, 2027.