Updated November 2026 · Estima.ca research
New Canadian mortgage rules (2025-2026)
Ottawa's late-2024 mortgage reforms took effect on December 15, 2024 and were codified in the Insurable Housing Loan Regulations (SOR/2025-55) in early 2025. They are the most consequential change to insured-mortgage rules in more than a decade, and they are still reshaping who can buy — and how much they can borrow — in 2026.
Two changes matter most: 30-year amortizations are now available on insured mortgages for first-time buyers and buyers of new-build homes, and the price ceiling for an insured mortgage rose from $1 million to $1.5 million.
The 30-year insured amortization
Before December 2024, an insured mortgage (down payment under 20%) was capped at 25 years. First-time buyers — anyone who has not owned a home in the last four years — and any buyer of a newly built property can now stretch that to 30 years with default insurance.
The trade-off is real: a longer amortization lowers the monthly payment but increases total interest paid over the life of the loan. On a $500,000 mortgage at 4.5%, moving from 25 to 30 years cuts the monthly payment by roughly $200 but adds tens of thousands in lifetime interest.
The $1.5M insured mortgage cap
The old $1 million cap had not moved since 2012 and had priced most single-family homes in Toronto and Vancouver out of the insured market. Raising it to $1.5 million means buyers in expensive markets can now qualify with a down payment of roughly 10% on the portion above $500,000, instead of needing 20% down on the whole price.
Mortgage insurers reported in early 2026 that these changes are already expanding insured-market activity, particularly in Ontario and British Columbia where the old $1M ceiling was most binding.
What did NOT change
The federal stress test — qualifying at the greater of your contract rate plus 2% or 5.25% — still applies to new insured mortgages and to most uninsured mortgages at federally regulated banks.
The minimum down payment structure is unchanged: 5% on the first $500,000 and 10% on the portion between $500,000 and $1.5 million.
FAQ
- Who qualifies as a first-time buyer for the 30-year rule?
- Anyone who has not occupied a home they (or their spouse/common-law partner) owned in the previous four years. First-time buyer status also applies after a marriage breakdown.
- Can I get 30-year amortization on a resale home?
- Only if you are a first-time buyer as defined above. Non-first-time buyers of resale homes remain capped at 25 years on insured mortgages.
- Does the $1.5M cap apply to my down payment math?
- Yes. On a $1.4M home you can put 5% on the first $500K and 10% on the remaining $900K — about $95,000 total — instead of the $280,000 that 20% would require.
- Is the stress test going away?
- No. OSFI reaffirmed the B-20 stress test in 2025. It still governs qualification at federally regulated lenders.