Canada Mortgage and Housing Corporation (CMHC) has announced expanded mortgage loan insurance options for prefabricated and modular housing as part of Canada’s broader effort to increase housing supply, improve affordability, and accelerate residential construction. The initiative comes as Canada faces ongoing housing shortages, with CMHC estimating the country must double housing starts over the next decade to meet demand.

The new CMHC Prefab Plus program is designed to help homebuyers finance factory-built homes more efficiently. Eligible buyers can access CMHC-insured mortgages with a minimum down payment of 5% while receiving construction financing in multiple stages, or draws, as project milestones are completed. This staged financing model better aligns with the unique construction timeline of prefabricated housing, allowing funds to be released for land preparation, delivery, and installation as needed.

CMHC says prefabricated homes can significantly reduce construction timelines and potentially lower costs compared to traditional site-built housing. By supporting faster, more efficient building methods, the program aims to increase housing production while making homeownership more accessible for Canadians.

The federal housing agency is also expanding support for modular construction across its multi-unit mortgage insurance products, including MLI Select. Modular construction involves manufacturing building modules off-site before transporting and assembling them at the final location. The expansion follows a successful pilot program that supported more than 800 rental housing units across five provinces using modular building methods.

One highlighted project is 605 Studio West in Calgary, an 84-unit affordable housing development created by Attainable Homes Calgary. The modular construction approach allowed the project to be completed and occupied in under one year, nearly twice as fast as comparable conventionally built projects in the same area.

CMHC’s expanded financing support reflects growing interest in off-site construction, modular housing, and prefabricated building systems as solutions to Canada’s housing affordability and supply challenges. Industry leaders view modular and prefab construction as critical tools for increasing productivity, reducing project delays, and delivering housing more efficiently nationwide.

Explore related articles you won’t want to miss:

Top Construction Technology Trends Transforming the Industry in 2026

Construction Guest Post Opportunities | Construction Links Network

How Digital Networking is Transforming the Construction Sector

• 
•