Feds to offer universities, colleges low-cost loans to build student housing

OTTAWA — Housing Minister Sean Fraser says post-secondary institutions will be able to apply for low-interest loans to build student housing starting this fall.

Post-secondary institutions will have access to a pre-existing program that offers developers low-cost financing to build rental apartments. 

The Apartment Construction Loan Program was topped up with an additional $15 billion this fall, bringing the total funding available to $40 billion. 

Fraser is making the announcement today alongside other cabinet ministers as the House of Commons returns after a winter break. 

The announcement comes as the federal government grapples with a ballooning international student program that has added strain to local housing markets.

Last week, the federal government announced a two-year cap on international student enrolments that would reduce the number of new permits approved this year by 35 per cent — and 50 per cent in Ontario.

The Canadian Press