Budget 2026: the biggest housing announcements for brokers
Mortgage rules, insurance, and the foreign buyer ban
Ottawa proposes raising the home price ceiling for optional mortgage insurance from $1 million to $1.5 million, giving buyers with a 20% deposit on higher-priced properties access to a wider range of lender offers and potentially more competitive rates.
No start date has been confirmed; a 30-year amortisation applies only where at least one borrower is a first-time buyer or the property is newly built.
From February 1, 2027, triplexes and fourplexes will qualify under new insurance rules, with construction loans insurable for up to 90% of projected completed value.
Private insurers will also be permitted to compete with the Canada Mortgage and Housing Corporation (CMHC) on loans for buildings of five to 50 units.
The federal proposal to extend the ban on foreign purchases of existing homes runs to January 1, 2029, with new residential properties exempted to stimulate preconstruction activity.
