Canada Lifts Mortgage Bond Plan by 50% to Boost Construction
- Mortgage bond spreads widened after minister’s annoucement
- Government still looking at proposal to wind down CMB program
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Prime Minister Justin Trudeau’s government is increasing the size of a mortgage-bond program by 50% to try to boost apartment construction and bring down surging housing costs.
The annual limit for Canada Mortgage Bonds will rise to C$60 billion ($44 billion), Finance Minister Chrystia Freeland said Tuesday, with the additional C$20 billion going toward financing rental housing projects.