At Terra Modular, we understand that taking on a building project can seem daunting. That’s why our goal is to simplify the entire process—from site selection and evaluation, securing funding options, concept design, and permit submission, to demolition if necessary, and managing the building process right through to the pre-delivery inspection. We’re here to support you every step of the way.
In the face of Canada’s growing housing crisis, urban infill projects present a powerful opportunity to maximize the use of existing land. Imagine taking a single-family lot and transforming it into a vibrant set of four townhomes or a fourplex, plus a garden suite/ADU—a solution that not only increases housing supply but also revitalizes underutilized spaces. Best of all, with no need for rezoning, you could go from initial permit submission to project completion in less than 10 months.
Homeowners of existing properties (25' x 120' or larger) or developers could purchase an existing home or a vacant lot and leverage government programs to bring these projects to life in cities like Toronto, Brampton, Kitchener, Guelph, Barrie, and Mississauga. For a comprehensive list of eligible cities, check out the CMHC Housing Accelerator Fund tracker by clicking here.
Financial Feasibility and the Role of CMHC Programs
This transformation is made possible by the Federal Government’s Housing Accelerator Fund (HAF) initiative combined with the Canada Mortgage and Housing Corporation (CMHC)’s MLI Select program. These innovative programs make urban infill developments more financially accessible by offering:
Up to 50-Year Amortization Mortgages: Extended repayment periods lower monthly mortgage costs, making projects more viable for developers and buyers alike. Learn more about the point system by clicking here.
Up to 95% Loan-to-Value Financing: With minimal upfront equity required, developers can stretch their budgets further.
Future Rent-Based Qualification: The program accounts for Net Operating Income (NOI), allowing projected rental income from townhomes to contribute to mortgage qualification. This forward-looking approach unlocks capital for ambitious projects while simultaneously easing qualification requirements.
Qualifications Information
To qualify for these programs, you must achieve:
50 Points for up to 40-year amortization,
70 Points for 45 years,
100 Points for 50 years. Points can be earned across three categories:
Energy Efficiency: Homes must be energy-efficient. Every home we build dramatically surpasses building code standards, earning up to 50 points.
Mobility-Friendly Units: One unit must be mobility-friendly/accessible. We offer accessible options for nearly every house model, earning up to 30 points.
Affordability: Allocate 10-15% of units as affordable (30% of median renters' income). Maintaining this for 10 years can earn up to 70 points.
At Terra Modular, we’re committed to making housing more affordable. Developers who commit to the 10-year affordability incentive will receive a discount on the project. Contact us for more details.
The Case for Urban Infill
Urban infill developments offer several advantages:
Maximizing Land Use: By replacing single-family homes with multi-unit housing, developers can address the demand for more housing in densely populated areas.
Reducing Urban Sprawl: Compact developments help preserve green spaces and minimize the environmental impact of expanding city boundaries.
Enhancing Community Living: Projects designed with walkability and accessibility in mind create vibrant, interconnected neighbourhoods.
Real-World Impact in Ontario
Take the Greater Toronto Area, for example. Cities like Brampton and Mississauga face surging demand for affordable housing but struggle with limited available land. By strategically targeting infill opportunities, developers can make a significant dent in the supply-demand gap while contributing to the local economy.
Making It Happen
For developers considering urban infill, the pathway is clear:
Identify eligible lots in high-demand cities.
Explore financing options through CMHC’s Housing Accelerator Fund and local incentives.
Design sustainable, modular townhomes that align with community needs.
With the right approach, urban infill is not just a solution—it’s a transformative opportunity to reimagine housing in Canadian cities.
Contact us today to discuss your next project, sales@terramodular.com.
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