Ottawa Launches $1.5 Billion Fund to Protect Canada's Affordable Rental Homes

The federal government has officially launched the Canada Rental Protection Fund, a $1.5 billion program designed to keep existing affordable rental homes affordable. Housing and Infrastructure Minister Gregor Robertson announced the launch in Ottawa on September 22, 2026.

Most housing announcements focus on building new homes. This one takes a different approach, focusing on protecting the affordable homes Canada already has before they're lost to redevelopment or rent increases.

Canada Has Been Losing Affordable Rentals Faster Than It Builds Them

The numbers behind the program are striking. Canada lost about 370,000 homes renting for under $1,000 a month between 2016 and 2021. By some estimates, up to 11 affordable units have been lost for every new one built.

More than 10 million Canadians rely on rental housing, and roughly one in three renters spends more than 30% of their income on housing. When older, lower-rent buildings are sold and repositioned at higher rents, those homes are often gone for good.

How the Fund Works

The program helps community housing providers, such as non-profits, co-operatives and Indigenous housing organizations, buy existing rental buildings and keep their rents affordable over the long term.

Who runs it: The Canadian Housing Acquisition Fund (CHAF), chosen through a competitive process. Its founding members include the Canadian Housing Renewal Association, the Co-operative Housing Federation of Canada, the National Indigenous Collaborative Housing Inc. and the BC Rental Protection Fund.

Who oversees it: Build Canada Homes, the federal Crown corporation led by CEO Ana Bailão.

The target: Protecting 7,000 at-risk rental homes over the first five years, subject to market conditions.

The model: A revolving fund. As money is repaid, it gets reinvested in future purchases, and the program is designed to attract added investment from private investors, charitable organizations and other governments.

The fund was first announced in Budget 2024. CHAF has now opened an online intake portal and pre-qualification process for housing providers.

“Every Canadian deserves a place to call home,” Minister Robertson said. “That is why our new government is taking decisive action to protect affordable rental housing through the Canada Rental Protection Fund, helping preserve affordable homes and ensuring more Canadians can remain in their communities.”

What This Means for Renters, Buyers and Property Owners

For renters: Over time, the fund should help keep more lower-rent homes available in communities where they're under pressure. At 7,000 homes over five years, though, it's a targeted program, not a fix for rental affordability across the country.

For rental property owners: Community housing providers will now have access to dedicated federal capital to buy existing buildings. If you own an older multi-unit rental property and have thought about selling, that could mean a new, well-funded group of potential buyers in the market.

For homebuyers: The program doesn't change mortgage rates or qualification rules. Indirectly, though, a steadier supply of affordable rentals gives renters more breathing room to save for a down payment rather than being squeezed out of their communities.

For the broader market: The launch reflects a two-track federal strategy. Build Canada Homes is focused on boosting new supply, while this fund aims to stop the loss of the affordable homes that already exist.

Looking Ahead

The next step is seeing how quickly the fund gets money out the door and how much private and charitable capital it attracts on top of the federal $1.5 billion. Housing providers can begin the pre-qualification process now through CHAF.

On the rate front, the next Bank of Canada announcement is on October 28, 2026. With inflation still running around 3%, borrowers should keep an eye on that decision as well.

Bottom Line

The Canada Rental Protection Fund puts a spotlight on a problem that often gets overlooked: Canada has been losing affordable rental homes far faster than it's replacing them. The program won't solve housing affordability on its own, but it adds an important tool alongside new construction.

Whether you're renting and planning your first purchase, or you own a rental property and are weighing your options, the Admore team is here to help you understand how changes like this affect your plans.

Sources:

Government of Canada – Build Canada Homes Announces the Launch of the Canada Rental Protection Fund (September 22, 2026)

Canadian Housing Acquisition Fund