Canada Offers Low-interest Loans to Unis to Build Student Housing

In a recent turn of events relevant in terms of Canada student visa news, the North American country is set to offer financial aid to post-secondary institutions to help build student housing. Postsecondary institutions will now be able to apply for low-interest loans to aid the construction of new student halls, according to Housing Minister Sean Fraser.

Not only will this help institutions build low-cost structures, but it will also help international students in Canada find student housing easier and help alleviate the pressure faces by the student housing market in the country.

“Canada needs more student housing and we’re going to help build it,” said Minister Fraser in a news conference earlier this week. Canada is set to tweak its existing program to ensure this low-cost student housing and apartment construction, according to the recent International Students in Canada news. 

The applications for the program are set to open this fall,” This is going to have a positive impact because universities and colleges oftentimes own wide swaths of land,” added Fraser. The existing program, called The Apartment Construction Program, was topped up with an additional CA$ 15 billion in the fall of 2023, bringing the total to CA$ 40 billion. The announcement did not entail any additional funding to the program, however. 

The Liberals claim that this move is set to help aid the construction of almost 30,000 new student rental units in addition to senior residences and apartment buildings. The new development also comes at the behest of developers who claim that red tape is a major roadblock for more affordable housing.

There were more than 90,000 students holding study visas last year out of which more than half were students who had newly entered the country. 90,000 study visa holders is more than three times than what the number was 10 years ago. 

Last week, the nation announced a two year cap on international students, which is set to reduce the number of international students in Canada by 35% as a means to combat the ballooning housing costs for students and citizens alike.

Data from Rentals.ca displayed that the average asking rent for December in Canada jumped 8.6% Year on Year to CA$ 2,718 per month. This tweak to the existing program is set to help ease housing costs, especially for international students in Canada. In addition, the large swathes of university land can be used to provide accessible housing for students at a low price for the university. 

Stay tuned with amber to stay up to date with the latest happenings in Canada.

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