Canada budget adds $5 billion for supportive housing and tweaks foreign buyer ban

Prime Minister Mark Carney’s second budget introduced a $5 billion long-term commitment to build supportive housing aimed at ending homelessness within a decade, alongside a renewal of the Canada Housing Benefit that will cost $1.7 billion in the first three years. The plan also earmarks just under $2 billion for infrastructure on federal lands and raises total funding for the Build Canada Homes program to $45 billion, including a $13 billion injection for new investments.

Alexi White, director of systems change at the charitable foundation Maytree, said the funding signals a stronger plan than previous promises and noted that provincial governments will need to share operating costs for the supportive housing projects, which will incorporate health-care, mental-health and addictions services.

The budget extends Canada’s foreign home-buyer ban, which was set to expire on Jan. 1, 2027, but adds an exemption that permits foreign purchasers to buy newly built residential units. The Canadian Home Builders’ Association welcomed the change, stating it protects affordability in the existing market while encouraging new supply. Senior economist Marc Lee of the Canadian Centre for Policy Alternatives called the exemption a “big loophole” and warned it could undermine affordability for new builds, even as he acknowledged the overall ban remains popular.

Additional measures aim to ease financing for multi-unit developments. Mortgage-insurance rules will be relaxed for three- and four-unit projects, and private insurers will be allowed to cover loans on developments of up to 50 units, removing previous limits on property values and residency requirements. The changes are expected to improve construction financing for developers and homeowners seeking to redevelop properties, with implementation slated for Feb. 1, 2027.