Canada Mortgage and Housing Corporation (CMHC) has provided a loan of $650 million to help finance the construction of 1,285 rental housing units in Scarborough.

Funding for the $750-million development at 25 Borough Drive is being provided through CMHC’s Apartment Construction Loan Program.

"This project will create more rental homes for people living and working in Scarborough and is an example of what's possible when we work together in partnership with the private sector,” said federal Housing Minister Gregor Robertson.

Oxford Properties Group plans to develop towers of 45, 35 and 41 storeys on the site. The company broke ground at the site on July 15.

The development will feature residential and retail space and will offer a broad unit mix of 51 studios, 693 one-bedrooms, 411 two-bedrooms and 130 three-bedroom units, including 23 townhomes for people from various economic backgrounds, age demographics, and family structures.

The site is located close to Scarborough Town Centre Shopping mall and will be near Scarborough Centre TTC station, which include GO Transit, and the future Scarborough Subway Expansion.

It will be Scarborough's first major purpose-built rental development in over a generation.

The City of Toronto is providing a further $2.5 million in support of the project through its Rental Housing Supply Program.