BMO Announces $12 Billion Financing Commitment towards Affordable Housing in Canada
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Includes commitments to increase access to quality housing for Indigenous Communities
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Includes lending, investing and underwriting solutions for retail, commercial and corporate clients involved in affordable housing
TORONTO, Aug. 5, 2021 /CNW/ - BMO today announced a $12 billion commitment to finance affordable housing over a ten-year period in support of the Canada Mortgage and Housing Corporation's (CMHC) aspiration that all Canadians have a home that they can afford and that meets their needs by 2030.
BMO's commitment will support clients who finance the development or refurbishment of housing that meets accredited affordable housing definitions in regions across Canada. This financing will help enable clients to purchase, develop, renovate and maintain affordable housing, social housing, community housing, shelters and housing for vulnerable populations.
"We're proud to support CMHC's vision while aligning strongly with BMO's Purpose to Grow the Good by committing $12 billion to economic and social inclusion through affordable housing," said Sharon Haward-Laird, General Counsel and Co-Chair of BMO's Sustainability Council, BMO Financial Group. "Investing in housing for all Canadians means removing barriers that exclude so many from a better life."
Part of BMO's commitment will support the financing of affordable housing and infrastructure projects that increase access to housing and promote economic development for Indigenous Peoples, both on and off-reserve.
"We are truly pleased to have BMO join us in our efforts to create a new generation of housing in Canada. Safe and affordable housing is a basic need to create a more inclusive society," said Romy Bowers, President & CEO, CMHC. "Governments alone cannot solve Canada's housing challenges. The private sector also has a role to play in building strong, vibrant communities for all. I hope commitments such as this one from BMO today inspires more companies to help us achieve our goal of housing affordability for everyone living in Canada."
BMO's commitment will be managed by its Sustainable Finance Group, with eligible projects including lending, investing and underwriting solutions for retail, commercial and corporate clients involved in originating and funding affordable multifamily mortgages, as well as financing provided to affordable developments through BMO's partnership with Options for Homes and other programs.
Increasing access to affordable and quality housing aligns with BMO's commitment to build a more inclusive society. This ten-year commitment enhances housing accessibility in Canada and aligns with the bank's prioritization of affordable housing in the U.S. through its Community Reinvestment Act funding that includes community development investments, community development loans and mortgage loans.
BMO's Sustainable Finance Group brings together capabilities from across the bank to mobilize financing for a sustainable future. The Sustainable Finance Group is responsible for raising capital and providing finance for clients pursuing sustainable outcomes, offering advisory services, and managing BMO's Impact Investment Fund.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $950 billion as of April 30, 2021, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
About CMHC
As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. CMHC's aim is that by 2030, everyone in Canada has a home they can afford, and that meets their needs.
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SOURCE BMO Financial Group
For further information: For News Media Enquiries: Kelly Hechler, Toronto, Kelly.hechler@bmo.com (416) 867-3996; Audrey-Anne Coulombe, Media Relations, Canada Mortgage and Housing Corporation, 613-748-2573, acoulomb@cmhc-schl.gc.ca
