Everything Canadian home buyers need to know about the latest mortgage programs, incentives, and rule changes for 2026.
The Canadian housing market in 2026 brings exciting new opportunities for first-time buyers. With the federal government and provincial authorities introducing new programs to make homeownership more accessible, there's never been a better time to step onto the property ladder.
From extended mortgage amortizations to enhanced down payment assistance, these programs address the biggest barriers Canadian buyers face: affordability and qualification requirements. Let's break down what's new and how you can take advantage of these opportunities.
One of the most significant changes for 2026 is the expansion of extended mortgage amortizations. The Canada Mortgage and Housing Corporation (CMHC) has extended the maximum amortization period for insured mortgages from 25 years to 30 years for first-time buyers purchasing newly constructed homes.
25 years
$1,419/month
on $400,000 mortgage at 5.5%
30 years
$1,265/month
on $400,000 mortgage at 5.5%
Savings: $154/month or $1,848/year in reduced monthly payments with the extended amortization. However, you'll pay more interest over the life of the loan.
The Department of Finance Canada has increased the threshold for insured mortgages. As of January 2026, mortgages up to $1.5 million can now be insured (up from $1 million previously). This change significantly expands the pool of buyers who can access mortgage insurance.
| Effective Date | Previous Limit | 2026 Limit |
|---|---|---|
| Before Dec 2024 | $1,000,000 | — |
| Dec 2024 | $1,000,000 | $1,250,000 |
| January 2026 | $1,250,000 | $1,500,000 |
Lower Down Payment
With insurance, you can put as little as 5% down
More Lender Options
Access to all major banks and lenders
Higher Price Point
Qualify for homes up to $1.5M with 5% down
CMHC Premium
Premium ranges from 4.0% to 6.0% depending on down payment
Multiple provinces have launched or expanded down payment assistance programs in 2026 to help first-time buyers bridge the gap between their savings and the required down payment.
$750K
max loan amount
Interest-free loan up to $750,000 or 5% of the home price (whichever is less) for down payment. Repayment begins after 5 years or when you sell, whichever comes first.
$50K
max contribution
Tax-free savings account where the government matches 10% of contributions (up to $5,000/year) for first-time buyers who earn under $100,000/year.
2%
pilot program
NEW for 2026: Pilot program allowing eligible first-time buyers to purchase with as little as 2% down (compared to the standard 5%). Income and price limits apply.
$60K
tax-free withdrawal
Withdraw up to $60,000 from your RRSP tax-free to use as a down payment. Must be repaid over 15 years. Available to all first-time buyers nationwide.
$10K
tax credit value
Non-refundable tax credit worth up to $10,000 for first-time home buyers. Can reduce federal taxes owed by up to $1,500. Must meet eligibility requirements.
Beyond direct financial assistance, Canadian first-time buyers can access several tax credits and incentives to reduce the overall cost of purchasing a home.
A $10,000 non-refundable tax credit that can reduce federal income taxes by up to $1,500. Available to first-time buyers who haven't owned a home in the previous four calendar years.
Value: Up to $1,500 savings
Most provinces offer land transfer tax rebates for first-time buyers. Ontario, BC, and Manitoba have specific rebates that can save thousands at closing.
Value: Up to $4,000 (varies by province)
First-time buyers can use gifted funds from family members for their down payment. Most lenders accept gifted funds with a signed letter from the donor confirming it's not a loan.
Value: Entire down payment can be gifted
The HBP allows tax-free RRSP withdrawals for home purchases. The 2026 limit remains at $60,000 per person ($120,000 for couples).
Value: Up to $60,000 tax-free
Our mortgage experts can help you navigate these new programs and find the best option for your situation.
According to CMHC guidelines, you are considered a first-time home buyer if:
Yes! Many first-time buyers combine multiple programs. For example, you could use:
Our mortgage experts can help you maximize these benefits.
Approval timelines vary by program:
The minimum down payment in Canada remains:
Note: With the new insured mortgage limit of $1.5 million, you can now qualify with 5% down on homes up to that price.
Program availability varies by province:
Land transfer tax rebates vary by province - check with your local government.