The short answer
CMHC funds housing developers and builders through loans and mortgage insurance, not cash grants. In 2026, the two programs open for new applications are the Apartment Construction Loan Program (ACLP), a $55 billion envelope of low-interest construction loans for purpose-built rental, and MLI Select, multi-unit mortgage loan insurance that cuts premiums by up to 30% and extends amortizations to 50 years. The grant-like programs, the Affordable Housing Fund (AHF) and Seed Funding, are now closed and fully committed. Above all of these, the new federal agency Build Canada Homes is consolidating delivery while Budget 2025 trims CMHC program funding by $2.4 billion through 2029-30.
Key facts at a glance
- The Apartment Construction Loan Program carries a $55 billion envelope and targets 131,000+ new rental homes by 2031-32. Source: CMHC / Budget 2024.
- ACLP loans start at a minimum of $1,000,000 and finance up to 100% of the residential cost of a project.
- As of December 2025, CMHC had committed $29.45 billion in ACLP loans for more than 74,600 rental homes.
- MLI Select requires a minimum of 50 points and gives premium discounts of 10%, 20% or 30% at 50, 70 and 100+ points.
- The Affordable Housing Fund is closed; the government committed $14.44 billion for 56,900+ new units and 174,700+ repairs.
- Seed Funding closed to new applications on February 2, 2026.
- Build Canada Homes plans to spend $7.3 billion (2025-26 to 2030-31), of which $6.7 billion is new spending. Source: Parliamentary Budget Officer.
What CMHC funds, and what it does not
CMHC is Canada's national housing agency, and it deploys housing money through three distinct levers: construction loans, mortgage loan insurance, and contributions (the grant-like component). For a developer or builder, the practical takeaway is that CMHC's currently open programs are financing instruments, not free money. The Apartment Construction Loan Program lends, and MLI Select insures. The non-repayable contribution streams, which lived inside the Affordable Housing Fund and Seed Funding, have been fully committed and closed. Source: Canada Mortgage and Housing Corporation.
This matters because the funding landscape is moving. In 2025 the federal government launched Build Canada Homes, a new delivery agency that builds deeply affordable and community housing directly and partners with private developers on middle-class affordable housing. Budget 2025 proposed to reduce CMHC program funding by a total of $2.4 billion across 2026-27 to 2029-30, and by $860 million per year thereafter. The closures of Seed Funding and the Affordable Housing Fund are part of that consolidation, so builders should plan around the open loan programs rather than waiting for legacy contribution windows to reopen. Source: Parliamentary Budget Officer, Budget 2025 outlook.
CMHC programs compared
Status, instrument type, and headline terms for the major CMHC development programs in 2026.
| Program | Instrument | Headline terms | Status (2026) |
|---|---|---|---|
| Apartment Construction Loan Program (ACLP) | Low-interest loan | From $1M, up to 100% loan-to-cost; $55B envelope | Open |
| MLI Select | Mortgage loan insurance | Up to 30% premium discount; up to 95% LTC; 50-yr amortization | Open |
| Affordable Housing Fund (AHF) | Loans + contributions | $14.44B committed across all streams | Closed / fully committed |
| Seed Funding | Loans + contributions | Was up to $350K loan + $150K contribution | Closed (Feb 2, 2026) |
| Federal Lands Initiative | Discounted land transfer/lease | $318.9M fund; 1,500+ homes target | By proposal |
| Housing Accelerator Fund (HAF) | Municipal incentive | $4.37B committed; 750,000+ homes est. | By signed agreement |
The programs in detail
Each card gives the verified terms, the audience, and a current-status read. CMHC programs are being added to the GrantCompass catalog; browse the latest details and deadlines in the funding directory.
The ACLP is CMHC's flagship rental-construction program and its single largest active funding line, with a $55 billion envelope expanded under Budget 2024 (up from the original $40 billion). It provides fully repayable, low-interest loans for new purpose-built rental, and now also funds independent living seniors housing and on- and off-campus student housing. November 2024 reforms raised the maximum financing to 100% of the residential cost on qualifying projects. As of December 2025, CMHC had committed $29.45 billion in ACLP loans to support more than 74,600 rental homes, against a target of 131,000+ by 2031-32. Source: CMHC, Apartment Construction Loan Program; Budget 2024.
MLI Select
OpenMLI Select is CMHC's multi-unit mortgage loan insurance product for residential properties of five or more units. It uses a point system across three social-outcome categories: affordability (up to 100 points), energy efficiency (up to 50 points), and accessibility (up to 40 points). A minimum of 50 points qualifies a project, and premium discounts of 10%, 20% or 30% apply at 50, 70 and 100+ points. Higher tiers also unlock up to 95% loan-to-cost on new construction and amortizations as long as 50 years. It is insurance, not a grant, but the premium savings and longer terms materially improve project economics. CMHC updated MLI Select premiums effective July 14, 2025. Source: CMHC, MLI Select.
Affordable Housing Fund (AHF)
Closed / fully committedThe Affordable Housing Fund (formerly the National Housing Co-Investment Fund) combined low-interest loans with non-repayable contributions for new affordable and community housing and for repair and renewal. It is now closed to new applications. CMHC reports the full budget has been committed across every sub-stream, including New Construction (Community Housing), New Construction (Rapid Housing), Repair and Renewal, and the Indigenous and Northern Communities option. As of December 2025, the government had committed $14.44 billion to create over 56,900 units and repair over 174,700 units. If you were targeting the AHF for contributions, the open ACLP is the realistic alternative for development financing. Source: CMHC, Affordable Housing Fund.
Seed Funding
ClosedSeed Funding supported the earliest, pre-development phase of affordable housing projects: business plans, preliminary design concepts, and environmental site assessments. Before closing it offered up to $350,000 in interest-free loans plus up to $150,000 in non-repayable contributions. The program closed to new applications on February 2, 2026 as part of the government's Comprehensive Expenditure Review, and no new funds are being allocated. It is included here because it remains one of the most-searched CMHC programs, and builders need to know it is no longer available rather than waste effort applying. Source: CMHC, Seed Funding (program closed).
Federal Lands Initiative
By proposalThe Federal Lands Initiative is a $318.9 million fund (with an additional $112.6 million added in Budget 2024) that transfers or leases surplus federal lands and buildings to affordable housing providers at discounted or no cost, with the level of discount tied to the social outcomes a proposal achieves. It targets at least 1,500 homes, including 600 affordable homes, and increasingly favours leasing land rather than selling it so the land stays public. This is not a cash grant; it is land, which can be the single largest cost line in a development. Source: CMHC, Federal Lands Initiative.
Housing Accelerator Fund (HAF)
By signed agreementThe Housing Accelerator Fund pays municipalities to cut red tape and speed up home approvals, not developers directly. Since its March 2023 launch, CMHC has committed $4.37 billion through HAF, and local governments estimate it will support over 750,000 new homes over the next decade. In the first year, participating municipalities issued 160,585 residential building permits, about 22,000 more than expected. For a builder, HAF matters indirectly: it loosens zoning and permitting in the cities that signed agreements, which is where rental and infill projects become easier to approve. Source: CMHC, Housing Accelerator Fund.
Frequent Builder Framework: a faster track for established builders
CMHC's Frequent Builder Framework gives experienced developers an expedited application path into the Apartment Construction Loan Program and the Affordable Housing Fund. For-profit organizations qualify with at least $50 million of prior CMHC business; non-profit and co-op organizations qualify with at least $20 million of CMHC business plus a portfolio of 500+ rental units.
The framework supports CMHC's service standard of conditional approval within 30 days and full approval within 60 days for these programs. If you are a repeat CMHC borrower, ask your regional CMHC specialist whether you qualify before submitting a standard application. Source: CMHC Frequent Builder framework announcement, 2024.
Which CMHC program fits your project
A quick decision guide for builders and developers based on what you are building and where you are in the process.
If you are building…
What's changed in 2026
The single biggest shift is structural. Build Canada Homes, launched in 2025 within Housing, Infrastructure and Communities Canada, is consolidating federal housing delivery, including responsibilities transferred from the Canada Lands Company and access to 88 federal properties spanning 463 hectares. The Parliamentary Budget Officer reports Build Canada Homes plans to spend $7.3 billion from 2025-26 to 2030-31, with $1.0 billion directed to transitional and supportive housing. Source: Parliamentary Budget Officer, Build Canada Homes outlook (Budget 2025).
Alongside that, Budget 2025 proposed cutting CMHC program funding by $2.4 billion over 2026-27 to 2029-30. The visible consequences for builders are already here: Seed Funding closed on February 2, 2026, and the Affordable Housing Fund is fully committed across every stream. The Apartment Construction Loan Program, by contrast, continued to expand, reaching $29.45 billion committed by December 2025. The net message for 2026 is to build your financing plan around the open loan programs and treat the contribution-based programs as historical. Source: CMHC program pages; Budget 2025.
Common mistakes when chasing CMHC funding
Treating CMHC programs as grants
The open programs are loans and insurance. Modelling them as non-repayable funding overstates project equity. Build your pro forma around repayable, low-interest debt.
Applying to the Affordable Housing Fund or Seed Funding
Both are closed. CMHC's portals no longer accept applications. Time spent preparing these submissions is wasted; redirect it to the ACLP or provincial programs.
Ignoring the MLI Select point math
The difference between 49 and 50 points is the difference between no MLI Select and a 10% premium cut. Design affordability, energy, and accessibility features to clear point thresholds deliberately.
Missing the Frequent Builder fast track
Repeat CMHC borrowers who qualify can get 30-day conditional approval but only if they apply through the Frequent Builder Framework rather than the standard queue.
Overlooking land as funding
The Federal Lands Initiative provides discounted or free land, often the largest single cost in a development, but it is missed because builders search only for cash programs.
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