Canada’s federal Budget 2026, released on November 5, proposes changes affecting foreign buyers, mortgage insurance and housing supply. A budget proposal is not the same as a rule already in force or an approved mortgage. Here are the key points and four misconceptions worth clearing up.
What does the budget propose?
Foreign-buyer restrictions. The federal government proposes extending the ban on foreign purchases of existing residential properties until January 1, 2029, while exempting newly built homes. Legislation and regulatory steps are still required; the proposal should not be treated as current permission to purchase.
Mortgage insurance. The budget proposes raising the home-price ceiling for optional mortgage insurance from $1 million to $1.5 million and allowing 30-year amortization when at least one borrower is a first-time buyer or the home is newly built. This is distinct from previously implemented mandatory insured-mortgage rules. New insurance measures for three- and four-unit homes are scheduled to take effect on February 1, 2027.
Housing supply. The budget proposes adding $13 billion over ten years to Build Canada Homes, bringing its total capitalisation to $45 billion, with a goal of supporting 200,000 homes over the next decade. The $45 billion is the programme’s total capitalisation, not a new appropriation of that amount.
Four common questions
1. Has the foreign-buyer ban simply ended?
No. The budget proposes to keep restrictions on existing homes while exempting new residential properties. Until the required legislative and regulatory process is complete, the proposed exemption is not in force.
2. Is “35%” a universal foreign-buyer tax?
No. In a mortgage quote, 35% may refer to a lender’s down-payment requirement, not a universal tax. British Columbia has a separate additional property transfer tax for qualifying foreign buyers in specified areas, with its own scope and exemptions. The federal ban, provincial tax and lender financing criteria need separate checks.
3. Does this mean home prices will repeat their 2016 trajectory?
One proposed policy cannot establish a price forecast. Provincial taxes, financing conditions, supply and demand also matter. Neither a guaranteed return to past prices nor a guaranteed absence of price growth follows from this announcement.
4. If the exemption eventually takes effect, can any foreign buyer purchase any new home?
Buyer status, property type, BC taxes and lender requirements would still need to be checked. Down-payment and financing terms depend on the individual application; there is no single threshold for everyone.
What might this mean for your plans?
First-time buyers can watch the proposed expansion of optional mortgage insurance. A longer amortization may reduce monthly payments but usually raises total interest paid, while approval still depends on income, down payment and credit. Foreign buyers considering a new home or presale should confirm when any exemption actually takes effect and review federal, provincial and lender requirements separately. Households approaching renewal may also watch proposed work on prepayment-penalty transparency, which has not yet been implemented.
Policies can change quickly; misunderstandings travel faster. If you want to discuss how mortgage options may fit your circumstances, contact Guaranti Group.
Guaranti Group and a real estate professional will also host an English-language first-home buying seminar in Richmond on November 21, covering common homebuying and mortgage-preparation questions.
Sources: Canada’s Budget 2026, Chapter 3 and British Columbia’s additional property transfer tax guidance. Based on information available November 6, 2026. This is general information, not personal mortgage, investment, tax or legal advice. Applicable rules and eligibility are subject to official requirements and lender assessment.
First published on Guaranti’s WeChat account.