Some of the initiatives already have specific implementation deadlines, while others are still at the stage of legislative preparation or public consultation.
Mortgages and Buying Real Estate
One of the most notable proposals is raising the maximum price of a home eligible for voluntary mortgage insurance from $1 million to $1.5 million. This could expand options for buyers who make a down payment of at least 20%, since lenders will gain additional loan insurance tools.
The budget also provides for the possibility of a 30-year mortgage amortization, but only first-time homebuyers or those purchasing newly built properties will be able to use it. A longer loan term makes it possible to reduce monthly payments, but increases the total amount of interest.
Another initiative concerns the transparency of the mortgage market. The Bank of Canada will be required to publish more detailed and up-to-date information on interest rates for insured mortgage loans. This will allow prospective borrowers to compare offers from different lenders. The specific rules for publishing the data have not yet been determined.
The government also intends to review the way borrowers are informed about penalties for early mortgage repayment. These are fees that may arise when selling a home, refinancing or switching to another lender before the end of the contract term. For now, the focus is on consultations rather than limiting the size of such penalties.
A separate area is the verification of mortgage borrowers’ incomes. The Canada Revenue Agency (CRA) will be able to enter into agreements with banks and insurance companies to confirm applicants’ incomes. $13 million is allocated over three years, starting in the 2027–2028 fiscal year, for the development and testing of this system. In the future, the industry is expected to participate in funding the service.
New Opportunities for Housing Construction
The budget pays particular attention to multi-unit construction.
Starting February 1, 2027, lenders will be able to apply for mortgage insurance for construction projects involving the building of triplexes and fourplexes. Developers will be able to obtain insured construction loans of up to 90% of the expected value of the completed property. This program has no property value limit and no requirement that the owner live in one of the units.
In addition, the availability of private mortgage insurance for properties with five to 50 residential units is being significantly expanded. The previously discussed initiative covered buildings with a maximum of eight units. Now private insurers will be able to compete with the Canada Mortgage and Housing Corporation (CMHC) in insuring loans for construction, purchase, refinancing and mortgage renewal.
The maximum loan amount will be 90% of the property’s value for new construction and 85% for other transactions. The maximum amortization period is 50 and 40 years, respectively. Applications under the new rules can also be submitted starting February 1, 2027.
The government proposes extending the ban on foreign buyers purchasing existing residential properties by another two years, until January 1, 2029. At the same time, it plans to introduce an exemption for new residential real estate. The details of this mechanism have yet to be determined.
Support for Renters and Social Housing
To help low-income renters, the federal government proposes allocating $5.6 billion as part of a ten-year extension of the Canada Housing Benefit. Funding is to begin in the 2028–2029 fiscal year. The program provides direct financial support to families and individuals who have difficulty paying rent.
Investments are also planned for the construction of social housing, supportive housing and temporary accommodation under the Build Canada Homes program. The federal government intends to participate in funding construction, while the ongoing upkeep of the properties and the provision of necessary services are expected to be left to the provinces and territories.
Bank Deposits and Everyday Expenses
One of the proposals directly affecting bank customers is raising federal deposit insurance coverage from $100,000 to $250,000. The government also plans to provide temporary additional protection for large cash balances that arise after certain events, such as the sale of real estate.
In addition, it is proposed to remove the limits on the amount of insurance coverage for eligible deposits in registered and tax-exempt accounts. It has not yet been specified exactly what amount will be protected after the sale of a home, or for how long.
The proposed rules on bank competition are also changing. Currently, financial institutions with capital of $12 billion must comply with widely held ownership requirements: no single shareholder may own 20% or more of the shares. The government proposes raising this threshold to $25 billion, giving mid-sized banks more room to grow and expand their business. This will require amendments to banking legislation.
Another initiative concerns bank fees. It is proposed to require financial institutions to send customers a single annual document listing all fees for servicing chequing and savings accounts.
Finally, federal authorities intend to hold consultations on changing the way credit card debt is repaid. It is proposed that amounts exceeding the required minimum payment be applied first to the debt with the highest interest rate. For example, if a cash advance on a card costs more than regular purchases, additional payments would first have to reduce that part of the debt. A similar practice is already in place in Quebec.
What Does This Mean for Canadians?
The budget does not offer a single large-scale solution to the housing crisis, but rather a whole set of changes. For homebuyers, the new mortgage insurance terms and the possible extension of loan terms are important. For developers, there is expanded access to construction loan insurance. For renters, there is continued federal financial support, and for bank customers, stronger deposit protection and greater fee transparency.
At the same time, many proposals still need to be enshrined in legislation or clarified through regulatory rules. Therefore, the announced initiatives cannot yet be considered rights and guarantees already in force.
It is especially important that the budget affects not only the real estate market, but also Canadians’ everyday financial relationships with banks. These changes, along with the mortgage measures, may gradually affect household budgets and housing affordability in the coming years.
