First, just to clarify, that loan program is actually for infrastructure, it's not for housing. But you're right, the low-interest loan is going to be available essentially at cost to what the government achieves with its own borrowing.
It's over a 10-year period, and the 0.25%, of course, isn't a daily overnight rate. For most provinces and municipalities, 10-year loans are running at about 3.5% to 4%. For the Government of Canada, it's a couple of points less.
This indeed is a very low-cost loan program. It was made available primarily to help municipalities take out additional loans to help fund stimulus programs, for which, of course, it didn't receive approval until after they had approved their own budgets.