The cost of buying a home has increased dramatically over the last couple of years. In December 2022, the Bank of Canada’s housing affordability index hit a 32-year high. So this indicates that it was nearly impossible for the average Canadian household to afford a home in this market. In other words, affordable housing in Canada became hard to come by.
Now that interest rates are rising, this constant rise in home prices is slowly seeing a decline in some major markets. But that doesn’t mean finding a home within your budget is easy.
Not only is the ability to buy a home a problem, but keeping homes and paying mortgages has also become an issue with the recent inflation. As of February 2022, one survey found that 1 in 6 Canadians could default on their mortgages.
Many Canadians feel the pressure of making ends meet when it comes to finding affordable housing. For that reason, they may need to turn to affordable housing programs in Canada for assistance.
What are Affordable Housing Programs?
Affordable housing programs are government initiatives in partnership with the Canada Mortgage and Housing Corporation (CMHC). Therefore, the aim is to provide funding to qualifying Canadians who need help and access to affordable, sound, and suitable housing. So, some of these program supports go through the Investment in Affordable Housing (IAH).
The programs aim to:
- Increase the supply of affordable housing across Canada
- Improve and preserve the quality of affordable housing across Canada
- Improve housing affordability for vulnerable Canadians
- Foster safe and independent living
These initiatives, in addition to other provincial and territorial programs, are available across Canada.
Affordable Housing Programs in Canada
Affordable housing programs in Canada differ depending on the province or territory in which you live. So, below are the main programs broken down by region and links to learn more.
Alberta
Residents of Alberta have access to three main programs.
- Affordable housing and rent assistance for individuals with low income
- Emergency housing for individuals or families in need of temporary housing when facing family violence, domestic violence, or houselessness
- Veterans service centre for veterans who need assistance finding housing.
British Columbia
British Columbia has several affordable housing programs depending on your needs. These include rental assistance programs, housing affordability assistance for elderly Canadians, safe homes for women fleeing violence etc.
You can find the list of these programs on the BC Housing website. But there is also a handy eligibility tool. It can help filter through available programs and find the best one to suit your needs. And the best part? The survey only takes about five minutes and can help determine your qualifications.
Manitoba
Manitoba partners with government, local, and private organizations to offer five main programs to locals across the province. So the programs are for those who are struggling with housing needs. These fall under the following categories:
- Rental housing and supports
- Social housing
- Co-operative housing
- Housing development: Includes options for individuals with accessibility issues.
New Brunswick
On the New Brunswick website, you can find a list with a large number of affordability programs when it comes to housing expenses and assistance. Therefore, these include programs for those struggling with rent, fuel and heating, safe and affordable housing for abused women and more. In fact, the full list includes 19 programs for residents.
Newfoundland and Labrador
Newfound and Labrador offer housing assistance depending on whether you are a renter or a homeowner. If you’re a part of the rental housing program, it caters to low-income owners and charges rental rates based on 25% of the new monthly income.
Homeowners have three programs:
- Home energy savings program: to help-low income families make energy-efficient retrofits to their homes with options for those who use oil or electricity.
- Home modification program: for low-income homes that require modifications for accessibility reasons.
- Provincial home repair program: for low-income homes that require repairs and updates.
Northwest Territories
The Northwest Territories’ housing programs and services are pretty inclusive. Therefore, programs range from home purchase programs and homeownership initiatives to homelessness assistance, funding, rent subsidies, and more.
Nova Scotia
Nova Scotia also has a wide range of affordable housing programs. These include down payment assistance, options for seniors and persons with disabilities, community housing, and more.
Nunavut
Nunavut has a public housing program available in all 25 local communities. The program provides subsidized housing based on income and ability to pay rent. So, you can find eligibility criteria and your local organization’s contact information here.
Ontario
Ontario affordable housing programs run differently, with options based on the region or community in which you are based. The Ontario website has a handy search table that will allow you to find the primary contact for your municipality with a phone number to call for more information on what is available in your area.
Prince Edward Island
Prince Edward Island has a range of funds and support programs to create better access to housing, including social housing, emergency shelters, transitional housing, and initiatives to facilitate home ownership better. And you can find a full breakdown of these programs and requirements here.
Quebec
Affordable housing programs in Quebec are available to homeowners and those who need assistance while renting. There are also renovation programs and location-specific programs. The list in English can be found here or in French here.
Saskatchewan
Saskatchewan offers programs divided into two main categories. The first is renting and leasing, and the second is home repairs and renovations. They also have programs for encouraging the development of new, affordable housing.
Yukon
Individuals struggling to pay rent in Yukon may qualify for the Rent-Geared-to-Income program. This program calculates rent at 25% of their monthly gross income. There are also loans and funding programs for homeowners, which can be found here.
Why is Affordable Housing Important?
Affordable housing is an essential aspect of a thriving community for many reasons, including the following:
- It provides stable housing for low-income families
This stability is critical for families struggling to make ends meet. So, families may have to move frequently without affordable housing. Therefore, this can end up severely affecting their health, education, and employment opportunities.
- Helps to reduce houselessness
Being houseless can devastate an individual’s physical and mental health. As well as their ability to maintain a job or attend school. So, providing affordable housing can reduce the number of houseless individuals and families and improve their quality of life.
- Promotes economic growth
Businesses with a stable workforce are more likely to invest in the community and contribute to its economic growth. Therefore, affordable housing can help reduce the cost of living for low-income families, freeing up funds for spending on necessities and boosting local businesses.
- Increases social cohesion
Affordable housing can also increase social cohesion by creating diverse and inclusive communities. When people from different backgrounds and income levels live in the same neighbourhood, they are more likely to interact with one another, build relationships, and support one another. So, these changes can create a sense of belonging and community essential for a healthy and thriving society.
Additional Resources for Canadians Struggling to Afford Housing
You are not alone if you struggle with rental or mortgage payments and finding affordable housing in Canada. So, in situations like this, it’s crucial to speak to your landlord and mortgage provider immediately. You may also consider finding a credit counsellor to help you navigate your financial situation.
Affordable housing is crucial for creating stable, healthy, and vibrant communities. Therefore, providing low-income families with safe and sound housing can help to reduce houselessness. It can also promote economic growth, improve health outcomes, and increase social cohesion.
Finally, finding affordable housing isn’t always easy to navigate. So, don’t be afraid to reach out to professionals who can help you find the support you need to find a safe living space in your area.
