OTTAWA — The Canada Mortgage and Housing Corporation (CMHC) has repeatedly stated the country needs to double housing starts over the next decade.
In order to do so, some new ways of building must be explored.
To foster this, the CMHC has announced it is expanding its mortgage loan insurance offering to include more options for prefabricated and modular homes.
“Prefabricated homes can be built faster and more efficiently than traditional onsite construction methods,” explains a release. “This reduces building timelines and potentially costs for both the homebuilder and homeowner, helping to address the affordability and housing shortage challenges faced by Canadians.”
Through the new CMHC Prefab Plus, homebuyers can purchase a factory-built home with a minimum down payment of five per cent and access CMHC-insured financing for their mortgage. The homebuyer can also receive funds in up to four stages (known as draws) as construction milestones are met, rather than in one lump sum.
This announcement from the CMHC follows a pilot initiative, which saw insured financing provided for more than 800 new rental homes leveraging modular construction across five provinces.
The initiative included 605 Studio West in Calgary, an 84-unit affordable housing complex developed by Attainable Homes Calgary (AHC).
AHC is a non-profit social enterprise owned by the City of Calgary focusing on improving housing affordability through the development of city-owned land. Modular construction allowed 605 Studio West to be built and occupied in under one year.
