Rising property prices as well as interest rates have made buying a property unaffordable for many first-time buyers.

A few months ago, the Canada Mortgage and Housing Corporation (CMHC) created an innovation fund to financially support construction projects that can offer solutions for access to property through rent-to-own.

This option consists of postponing a purchase while taking advantage of the property without delay.

How it works ?

The tenant rents a property for a few years before acquiring it. This formula allows you to access the property before owning it and to benefit from a period of time to meet the conditions of purchase and the essential down payment. At the end of the lease, the tenant can buy or not the property according to pre-established conditions by contract with the seller, according to Denis Robitaille, president of the company Les Anges immobiliers.

CMHC recently launched a novelty in this area: the CMHC Innovation Fund.

Rent-to-own projects are now valued in order to promote the creation of more affordable housing.

Funding is now available to developers, investors and providers who want to pilot and test new ideas to better respond to the current housing environment and meet needs.

To support the promoters of this type of project, the Innovation Fund offers financial support for the study prior to construction (soil tests, etc.). In addition, for everything related to construction, CMHC offers low-interest loans to promote the construction of affordable housing.

Four main criteria

To obtain financial support from the Fund, four main criteria must be met: