“Did the mortgage rules change?” is one of the most common questions we hear from Ottawa buyers and homeowners right now. The honest answer: the biggest mortgage changes took effect in late 2024 and are still in place, and most of what’s new in 2026 is on the tax side, especially for new builds. Here’s what has changed, what hasn’t, and what it means for you.
THE SHORT ANSWER
First-time buyers and new-build buyers can get a 30-year amortization with less than 20% down, insured mortgages now go up to $1.5 million, and you don’t have to re-pass the stress test to switch lenders at renewal. New in 2026: a federal GST rebate of up to $50,000 for first-time buyers of new homes, plus expanded Ontario HST relief on new builds. The stress test rate itself hasn’t changed.
2026 Mortgage Rule Changes at a Glance
| Change | Who it affects | Status |
|---|---|---|
| 30-year amortization | First-time buyers and anyone buying a new build, with less than 20% down | In effect since Dec 15, 2024 |
| $1.5M insured mortgage cap | Buyers with less than 20% down on homes up to $1.5M | In effect since Dec 15, 2024 |
| No stress test on straight switches | Anyone switching lenders at renewal without borrowing more | In effect since Nov 21, 2024 |
| Federal first-time buyer GST rebate | First-time buyers of new homes | Law since March 2026 |
| Ontario HST relief on new homes | First-time buyers, plus a one-year window for all buyers | Announced; confirm status |
| Rental mortgage capital rules | Lenders (and indirectly, investors with several rentals) | Applies to banks in 2026 |
| Stress test rate | Everyone qualifying for a new mortgage | Unchanged |
30-Year Amortizations for First-Time Buyers and New Builds
Since December 15, 2024, insured mortgages (less than 20% down) can be amortized over 30 years instead of 25 if you’re a first-time buyer or you’re buying a newly built home. A longer amortization lowers your monthly payment, which can help you qualify, though you’ll pay more interest over the life of the mortgage.
If you’re putting 20% or more down, 30-year amortizations were already available from many lenders and still are.
Insured Mortgages Now Go Up to $1.5 Million
The price cap for an insured mortgage rose from $1 million to $1.5 million on December 15, 2024. In practice, that means you can buy a home under $1.5 million with less than 20% down. The minimum down payment is:
- 5% on the first $500,000 of the purchase price
- 10% on the portion between $500,000 and $1.5 million
- 20% on homes priced at $1.5 million or more
With less than 20% down you’ll pay a mortgage insurance premium, which is usually added to the mortgage. Our guide to CMHC mortgage insurance explains how it’s calculated.
No Stress Test When You Switch Lenders at Renewal
This is the change that matters most to existing homeowners. Since November 21, 2024, you don’t have to re-qualify at the stress test rate when you do a straight switch to a new lender at renewal. That applies whether your mortgage is insured or uninsured.
A straight switch means the same loan amount and the same remaining amortization. If you want to borrow more or stretch your amortization, it’s treated as a new mortgage and you’ll be stress tested.
Before this change, some homeowners felt stuck with their lender’s renewal offer because they might not qualify elsewhere. Now you can shop your renewal properly. See switching vs. refinancing and our mortgage transfer page for how it works.
The Stress Test Itself Hasn’t Changed
For a new mortgage, you still have to qualify at the higher of your contract rate plus 2%, or 5.25%. OSFI, the federal banking regulator, reviews this rate at least once a year and has kept it in place. Separately, federally regulated lenders now face limits on how much of their new uninsured lending can go to borrowers with very high loan-to-income ratios. Those limits apply to a lender’s overall portfolio, not to you individually. More detail is in our stress test guide.
New for 2026: Up to $50,000 GST Relief for First-Time Buyers
The federal first-time home buyers’ GST/HST rebate became law in March 2026, and the CRA began accepting applications that month. If you’re a first-time buyer purchasing a new home from a builder, it can cover the full 5% federal GST on a home up to $1 million, to a maximum of $50,000. The rebate phases out between $1 million and $1.5 million.
It applies to purchase agreements signed on or after March 20, 2025 and before 2031. It doesn’t apply to resale homes. Your builder may credit it at closing, or you can apply directly to the CRA.
Ontario HST Relief on New Homes
Ontario has announced matching relief on the 8% provincial portion of the HST. For first-time buyers, the province announced it would rebate the provincial portion on new homes up to $1 million, lined up with the federal rebate’s March 20, 2025 start date. Combined, that could take the full 13% HST off a qualifying new home.
In its 2026 Budget, Ontario also announced a temporary expansion to all buyers, not just first-timers, for agreements signed with a builder between April 1, 2026 and March 31, 2027, with combined relief of up to $130,000 (CTV News, Osler). When it was announced, these measures depended on federal legislation, so confirm the current status with your real estate lawyer or builder before you count on the money.
Investors: Rental Mortgage Rules for Lenders
OSFI has clarified how banks classify mortgages that depend on rental income, with the new capital rules applying to most banks in 2026. These rules change how much capital a lender holds against some rental mortgages. They don’t change how you qualify: in OSFI’s own words, borrowers “can continue using rental and non-rental income to qualify for new mortgages including rental properties” (OSFI). Where you may notice it is in pricing or lender appetite if you own several rental properties. See our investment property mortgage page for options.
What This Means If You’re Buying or Renewing in Ottawa
- Buying a new build (Barrhaven, Orleans, Kanata, Stittsville and other growing areas): you may qualify for a 30-year amortization and GST/HST relief. Ask your builder how the rebates are handled before you sign.
- First-time buyer, resale home: you can still get a 30-year amortization on an insured mortgage, and Ontario’s land transfer tax rebate of up to $4,000 still applies. Our first-time buyer guide walks through it step by step.
- Renewing: you can switch to a better lender without passing the stress test again, as long as you’re not borrowing more. Start shopping about 120 days before your renewal date.
New Mortgage Rules: Common Questions
Did the mortgage stress test change in 2026?
No. You still have to qualify at the higher of your contract rate plus 2% or 5.25%. What changed is that you no longer need to re-qualify at that rate when you do a straight switch to a new lender at renewal.
Can I get a 30-year mortgage in Canada?
Yes. Since December 15, 2024, insured mortgages (less than 20% down) can have a 30-year amortization if you are a first-time buyer or buying a newly built home. With 20% or more down, 30-year amortizations have long been available from many lenders.
Do I have to pass the stress test if I switch lenders at renewal?
Not for a straight switch, meaning the same loan amount and the same remaining amortization. That has applied to both insured and uninsured mortgages since November 21, 2024. If you borrow more or extend your amortization, it is treated as a new mortgage and you will be stress tested.
What is the minimum down payment in Canada in 2026?
5% on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more need at least 20% down.
Is the first-time home buyer GST rebate available on resale homes?
No. The federal first-time home buyers' GST/HST rebate applies to new homes bought from a builder (and some owner-built or substantially renovated homes), not resale homes.
Sources
- Finance Canada: The boldest mortgage reforms in decades (30-year amortization, $1.5M cap)
- OSFI: Minimum qualifying rate for uninsured mortgages
- OSFI: Uninsured straight switches exempt from the MQR; portfolio LTI limits
- CRA: First-time home buyers’ GST/HST rebate
- CRA: The first-time home buyers’ GST/HST rebate is available now (March 2026)
- CTV News: All Ontario buyers will be eligible for HST rebate on new homes for one year (March 25, 2026)
- Osler: Ontario’s new HST rebate, key details (March 26, 2026)
- OSFI: Clarifying guidance on rental income and mortgage classification
Up to date as of November 2026
Government programs and lender policies change. This guide is general information, not advice for your situation. Confirm rebate eligibility with your lawyer, builder or the CRA, and talk to us about how the rules apply to you.
Every file is different. If you’re wondering how any of this changes what you can buy or what you should do at renewal, we’ll walk you through it, no pressure and no assumptions. Start with our 3-minute form or call (613) 447-1366.