Disclosure: this post contains no affiliate links today. When that changes, this line will say so — and the rankings won’t.
The November 5, 2026 federal budget (chapter 3) proposes two changes for homebuyers: making mortgage insurance optional for purchases between $1 million and $1.5 million, and extending 30-year amortizations for first-time buyers and new builds. Both would help buyers in expensive markets. But read the catch first, because it changes how you should use this news.
The proposal
Insured mortgages up to $1.5 million are already available — that cap has been in effect since December 15, 2024. What Budget 2026 proposes is different: making mortgage insurance optional for purchases between $1 million and $1.5 million, and extending 30-year amortizations for first-time buyers and new builds. Announced — requires legislation.
The catch
Announced — not law. The budget gives no effective date for these proposals, and they are not on the legislative annex list. Treat them as direction, not a date you can plan a purchase around. Do not time an offer, a closing, or a down payment around changes that are not yet law.
Also in the budget for housing
- The foreign-buyer ban on existing homes is extended to January 1, 2029. New homes are exempt.
- Missing-middle insured financing — for 3-to-50-unit buildings — comes with published parameters from February 1, 2027.
- The Bank of Canada will publish insured rate data, and there will be a consultation on prepayment-penalty transparency — good news for anyone who has ever been quoted a penalty they couldn’t check.
For the rates that exist today, see our guide Mortgage Rates in Canada: What the Bank of Canada’s Moves Mean for You, and run your own payment with the Canadian Mortgage Calculator at any rate.
General information only — not financial advice.