Canada Mortgage and Housing Corporation Commits $165 Million to Kingdom's 370-Unit Bull Tower Rental Project in Toronto

The Government of Canada announced $165 million in funding through the Apartment Construction Loan Program (ACLP) to help build 370 rental homes in Toronto, with Canada Mortgage and Housing Corporation (CMHC) providing the financing. The project, called The Bull Tower, is being developed by Kingdom at 128 Peter Street in the city's Entertainment District. The announcement was made Oct. 16, 2026.

Canada Mortgage and Housing Corporation Financing for The Bull Tower

The $165 million commitment is provided through the ACLP, which offers fully repayable, low-interest loans to encourage construction of rental housing. The financing equates to approximately $445,946 per home, a figure that should not be read as total development cost or project value.

The announcement was made by Chi Nguyen, Member of Parliament for Spadina-Harbourfront, on behalf of the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada.

The government said the project is located close to transit, parks, entertainment and local amenities and will help address local housing needs, supporting a more inclusive and complete community.

Kingdom's Downtown Toronto Rental Strategy

Kingdom is the developer of The Bull Tower. In a statement, the company described the project as "an important milestone in Kingdom's commitment to creating high-quality rental homes in downtown Toronto."

"We are proud to work alongside the Government of Canada, CMHC, the City of Toronto, and our project partners to help address the city's growing housing needs," the statement said. "Through collaboration and a shared vision for urban development, we aim to create more than just homes. We hope to foster a vibrant, connected community where residents can live, work, and thrive."

In a separate statement, the ACLP was described as aimed at increasing the supply of new rental housing. "This is about more than constructing homes, it is about creating opportunities for individuals and families to put down roots, thrive and contribute to a stronger, more inclusive Toronto where everyone can feel at home," the statement said.

Apartment Construction Loan Program Scale

CMHC describes the ACLP as a $55 billion program providing low-cost financing to support more than 131,000 new rental homes across Canada by 2031-2032. The program offers fully repayable low-interest loans aimed at rental construction for middle-class Canadians, which the government said creates a positive impact to the housing system at minimal cost to taxpayers.

As of June 2026, CMHC had committed $32 billion in loans through the ACLP to support the creation of more than 81,918 rental homes. On those figures, The Bull Tower represents roughly 0.5% of committed loan volume and about 0.45% of the homes supported to date. The ACLP is one of several programs under the National Housing Strategy and complements initiatives that fund affordable housing units for lower-income households.

The announcement also referenced Build Canada Homes, which the government said is helping increase the pace of affordable homebuilding, build transitional and supportive housing, and partner with private market developers on affordable homes for the middle class.

Toronto Rental Market Context

Toronto's purpose-built rental vacancy rate reached 3.0% in 2025, its first return to that level since the pandemic, while the average two-bedroom rent in the Greater Toronto Area was $2,034, up 3.5% year over year. CMHC has described roughly 3% vacancy as an industry threshold for a balanced rental market.

Conditions had become less constrained by 2026. CMHC reported that increased supply and slower demand were easing asking rents in Toronto and other major Canadian markets, while rental apartment completions were running ahead of the comparable period in 2025. Its 2026 mid-year update found that vacancies were highest in buildings completed after 2020.

Toronto's rental construction pipeline remained active. Purpose-built rental apartment starts in the Toronto area increased 82% in the first half of 2026, and rental starts exceeded condominium apartment starts for the first time since 1994, according to CMHC data.

Outlook

The Bull Tower financing illustrates how ACLP loans are being deployed in high-cost urban markets, where land and construction economics can limit new rental supply. As the project moves forward, it will enter a Toronto market where new rental supply is rising and tenants have more choice, while its location near transit and downtown amenities is among the features the government cited in announcing the funding.

Sources

• Canada Mortgage and Housing Corporation news release, "Canada announces the groundbreaking of new homes in Toronto": https://www.cmhc-schl.gc.ca/media-newsroom/news-releases/2026/canada-announces-groundbreaking-new-homes-toronto