Low-cost loans for student housing construction

This fall 2024, Canada will implement proactive measures to address the need for student housing through the Apartment Construction Loan Program. This resolution is the cornerstone of an approach intended to revolutionize the student housing landscape and make a significant contribution to the Canadian housing market.

In this Immiland Canada blog, we share this news with good cheer because we know how important it is for the international student to see their dream of being in a country with quality of life come true, but the housing issue has been critical in recent times, so the government is taking action.

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Innovative approach from the Ministry of Housing 

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Former Immigration Minister Sean Fraser, now Minister of Housing, recently announced this initiative to offer low-cost loans to higher education institutions and student housing developers, both on and off campus, to ensure that students have housing units available to them and that finding housing is not a problem that affects their stay in the country as well as their academic dedication. Below are 6 key points of this program.

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1. What is the Apartment Construction Loan Program?

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This is a federal program that seeks to provide low-cost loans to post-secondary institutions and builders, with the goal of encouraging the creation of new student housing in light of the growing housing need seen in recent months, particularly in the past year, 2023, with the arrival of more study visitors. The anticipated result is the creation of 101,000 new rental homes across Canada by fiscal year 2031-2032. With the recent injection of an additional $15 billion, the total funding available for the program now stands at an impressive $40 billion. 

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2. Support for the housing sector despite the cap on international student admissions.

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The announcement of the Apartment Construction Loan Program follows closely on the heels of another significant change that occurred recently with the cap on new international student admissions in 2024. Despite the decrease in study permits by 35% compared to the previous year, Canada is taking steps to ensure that housing remains a priority. By investing in student housing, the government seeks to balance the impact of these changes and provide housing solutions for both domestic and international students.

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3. Commitment to housing supply

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Deputy Prime Minister Chrystia Freeland reiterated the Canadian government's commitment to address the housing shortage through the provision of new units. The country's position remains steadfast in its emphasis on cultural diversity and recognition of immigration as a strength in the overall development of Canadian society, and Freeland stressed the need to manage immigration appropriately to ensure a positive contribution to the country's growth.

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4. Incentive for the real estate market in Canada

The government's decision to encourage developers to build student housing is a crucial element in its broader strategy to combat the housing shortage, which has been the major problem given the large influx of foreigners, especially from the student sector, so by encouraging additional housing supply, it will simultaneously relieve pressure on the overall housing market. This will ensure that affordable rental housing prices are maintained and that there is enough to go around.

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5. Vancouver student housing supplemental grant

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The University of British Columbia, Vancouver offers specific grants, such as the Supplemental Student Housing Grant, which is designed to provide targeted financial support to students residing in university-managed housing. These grants are an excellent affordable housing option. Read more about this grant here.

While we, at Immiland Canada, have received comments about the concern of many internationals who perceive some changes as a challenge to their immigration process or their continued stay in Canada while studying, we have also generated calming responses so that they can understand the implication to the poster of all these announcements, In the end, as the fall of 2024 approaches and applications for the program open, Canada is better prepared to ensure that the impact of the international education sector on the country is one of economic stability for each student and permanence in terms of safety, affordability and diversity of housing for its residents. We invite you to stay informed with us on this and other current Canadian immigration issues.

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If you would like an Immiland certified advisor to review your immigration profile to know your best option to come to Canada, write to us at info@immilandcanada.com or check our website to learn about all our immigration services, click here.

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With love,

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Immiland