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What Changed in Mortgage Rules for 2026

2026 mortgage policy: insured price cap raised to $1.5M, 30-year amortization now allowed for first-time buyers and new construction (with 0.20% surcharge). Stress test unchanged.

Reviewed by Canadian Money Help Editorial Updated April 25, 2026 Source CMHC 2026

Two material federal mortgage policy changes took effect in late 2024 and apply throughout 2026: the price cap on insured mortgages rose from $1,000,000 to $1,500,000, and 30-year amortization is now available on insured mortgages for first-time home buyers and for purchases of newly constructed homes. The OSFI B-20 stress test rule (qualifying at the higher of contract rate plus 2% or 5.25%) is unchanged.

Changes at a glance

Item Pre-change Now (2026)
Insured mortgage price cap $1,000,000 $1,500,000
30-year amortization eligibility Not available on insured Allowed for first-time buyers and new construction (with insurance surcharge)
30-year amortization surcharge n/a +0.20% on the CMHC premium
Down payment minimum (purchase up to $500K) 5% 5%
Down payment minimum ($500K to $1.5M) n/a (uninsured required) 5% of first $500K + 10% of remainder
Down payment minimum (above $1.5M) 20% 20% (uninsured)
OSFI B-20 stress test max(contract+2%, 5.25%) (unchanged)
GDS / TDS limits (insured) 39% / 44% (unchanged)

Why the price cap change matters

Before the change, a buyer in Toronto or Vancouver wanting to purchase a $1,200,000 home was required to put down 20% ($240,000) because no insurer would back a mortgage on a property over $1,000,000. The new cap of $1,500,000 means buyers in expensive markets can put 5% down on the first $500,000 and 10% on the remainder up to $1,500,000, dramatically lowering the cash-down requirement.

For a $1,200,000 home, the new minimum down payment is $25,000 (5% × $500,000) + $70,000 (10% × $700,000) = $95,000, or 7.9% of the purchase price. The mortgage of $1,105,000 is then insured (with the CMHC premium added to principal).

Why the 30-year amortization change matters

Insured mortgages were previously capped at 25-year amortization. The new 30-year option (for first-time buyers and new construction) lowers monthly payment, making more buyers eligible under the GDS/TDS ratio limits. The trade-off: the CMHC premium has a 0.20% surcharge for 30-year amortization, and total interest paid over the life of the mortgage is meaningfully higher.

What did not change

The OSFI B-20 stress test (qualifying at the higher of contract rate plus 2 percentage points or 5.25%) is unchanged. The 39% GDS limit and 44% TDS limit for insured mortgages are unchanged. The CMHC premium percentages by LTV tier are unchanged.

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Frequently asked questions

What is the new insured mortgage price cap?
$1,500,000, up from $1,000,000. Buyers can now put down less than 20% on homes priced up to $1.5M and have the mortgage insured.
Can I get a 30-year amortization on an insured mortgage?
Yes if you are a first-time home buyer OR purchasing a newly constructed home. Subject to a 0.20% surcharge on the CMHC premium.
Did the stress test rule change for 2026?
No. The OSFI B-20 stress test still requires qualifying at the higher of contract rate plus 2 percentage points or 5.25%.
What is the down payment for a $1.2 million home in 2026?
5% on the first $500,000 + 10% on the remaining $700,000 = $95,000 minimum (about 7.9% of purchase price). Mortgage insurance applies because the home is under the new $1.5M cap.
Did GDS or TDS limits change?
No. Insured mortgage limits remain at 39% GDS and 44% TDS.