The Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister responsible for CMHC said Saturday that eligible co-operatives and non-profit housing providers with non-renewable CMHC mortgages will be able to prepay their loans without penalty.
“The Government of Canada firmly believes that co-operative and non-profit housing are an important part of the housing continuum, and we are taking measures to ensure that the affordable housing sector remains strong and stable,” the minister said.
Providers that decide to prepay will then be able to source private mortgages at current interest rates, lowering mortgage costs and boosting affordability of rents.
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The federal government has announced that it is making $150 million available over the next four years for prepayment flexibility for eligible social housing providers.