Canada’s mortgage landscape shifted significantly in late 2024 and into 2025–2026 with a wave of federal policy changes designed to improve affordability and access. Whether you are buying your first home, renewing, or switching lenders, the rules that apply to your mortgage have changed. This guide compiles every major rule change in one place so you can see exactly what applies to your situation.
Summary of All Rule Changes
| Change | Effective Date | Who Benefits |
|---|---|---|
| 30-year insured amortization for first-time buyers on new builds | August 1, 2024 | First-time buyers purchasing new construction |
| 30-year insured amortization for all first-time buyers + all new builds | December 15, 2024 | All first-time buyers; anyone buying new construction |
| Insured mortgage cap raised from $1M to $1.5M | December 15, 2024 | Buyers in high-cost markets (Toronto, Vancouver) |
| Stress test removed for uninsured switches/transfers | November 21, 2024 | Renewal borrowers switching lenders |
| Canada Secondary Suite Loan Program (CSSLP) | 2024–2025 | Homeowners adding legal secondary suites |
| OSFI capital requirement adjustments | Ongoing | All mortgage borrowers (indirectly) |
| Foreign buyer ban extended | January 1, 2025 | Non-residents (restriction); domestic buyers (reduced competition) |
30-Year Amortization Expansion
The federal government expanded 30-year amortization for insured mortgages in two stages. Previously, insured mortgages (less than 20% down) were capped at 25-year amortization. Uninsured mortgages (20%+ down) have always been eligible for 30 years.
Timeline
| Date | Change |
|---|---|
| Before August 2024 | 30-year amortization only for conventional (20%+ down) mortgages |
| August 1, 2024 | 30-year insured amortization for first-time buyers purchasing new builds |
| December 15, 2024 | 30-year insured amortization for all first-time buyers and all new build purchases |
Who Qualifies Now
| Buyer Type | Property Type | 30-Year Insured Available? |
|---|---|---|
| First-time buyer | New build | Yes |
| First-time buyer | Resale | Yes |
| Non-first-time buyer | New build | Yes |
| Non-first-time buyer | Resale | No (25-year max for insured; 30-year if uninsured with 20%+ down) |
Payment Impact
On a $600,000 mortgage at 4.50%, the difference between 25-year and 30-year amortization:
| Amortization | Monthly Payment | Total Interest | Monthly Savings vs 25-yr |
|---|---|---|---|
| 25 years | $3,300 | $390,000 | — |
| 30 years | $3,024 | $489,000 | $276 |
The 30-year option saves $276/month but costs approximately $99,000 more in total interest over the life of the mortgage.
For the full comparison, see our guide: 25 vs 30 Year Amortization.
Insured Mortgage Cap Increase: $1M → $1.5M
The maximum purchase price eligible for mortgage default insurance increased from $1,000,000 to $1,500,000 on December 15, 2024. This is the most impactful change for buyers in Toronto, Vancouver, and other high-cost markets.
What Changed
| Factor | Before Dec 15, 2024 | After Dec 15, 2024 |
|---|---|---|
| Maximum insured purchase price | $1,000,000 | $1,500,000 |
| Minimum down payment for $1.2M home | 20% ($240,000) | 5% on first $500K + 10% on remainder = $120,000 |
| Minimum down payment for $1.4M home | 20% ($280,000) | 5% on first $500K + 10% on remainder = $115,000 |
| Stress test applies? | Yes (at both levels) | Yes (at both levels) |
Down Payment Savings Example
| Purchase Price | Down Payment (Old Rules — 20% Required) | Down Payment (New Rules — Insured) | Savings |
|---|---|---|---|
| $1,100,000 | $220,000 | $85,000 | $135,000 |
| $1,200,000 | $240,000 | $95,000 | $145,000 |
| $1,300,000 | $260,000 | $105,000 | $155,000 |
| $1,400,000 | $280,000 | $115,000 | $165,000 |
| $1,500,000 | $300,000 | $125,000 | $175,000 |
The trade-off: buyers putting down less than 20% must pay CMHC mortgage default insurance, which adds 2.8%–4.0% of the mortgage amount to the balance. On a $1.3M purchase with $105,000 down, the insurance premium is approximately $47,800.
For the full breakdown, see: Insured Mortgage Limit Increase Explained.
Stress Test Removed for Uninsured Switches and Transfers
On November 21, 2024, OSFI announced that federally regulated lenders are no longer required to apply the stress test (B-20 qualifying rate) when processing uninsured mortgage switches and transfers at renewal.
Before and After
| Scenario | Before Nov 21, 2024 | After Nov 21, 2024 |
|---|---|---|
| Renewing with same lender | No stress test | No stress test (unchanged) |
| Switching to a new lender (uninsured) | Stress test required | No stress test |
| New purchase | Stress test required | Stress test required (unchanged) |
| Refinancing | Stress test required | Stress test required (unchanged) |
| HELOC application | Stress test required | Stress test required (unchanged) |
Why This Matters
Previously, borrowers who locked in at low rates (1.5%–2.5%) during 2020–2022 were effectively trapped with their current lender at renewal. Even though they had been making payments on time for years, they could not pass the stress test at a new lender because the qualifying rate (contract + 2%) was too high relative to their income. This forced them to accept whatever rate their current lender offered, with limited negotiating power.
Now, these borrowers can shop at renewal and switch to a lender offering a better rate — without having to prove they can afford the mortgage at an inflated qualifying rate.
For more details, see: Stress Test Changes for Switches and Transfers.
Canada Secondary Suite Loan Program (CSSLP)
The CSSLP is a CMHC-insured loan that allows homeowners to borrow up to $80,000 to build a legal secondary suite — basement apartment, laneway house, or garden suite — in their existing home. It was introduced as part of Canada’s housing supply strategy.
| Feature | Details |
|---|---|
| Maximum loan | $80,000 |
| Loan type | CMHC-insured, separate from mortgage |
| Repayment | Up to 15 years |
| Property type | Owner-occupied primary residence |
| Suite requirement | Must create a self-contained, legal secondary suite |
Projected rental income from the suite can help you qualify for the loan. This program is separate from other provincial and municipal incentive programs that may offer additional grants or rebates for secondary suite construction.
For full details: Canada Secondary Suite Loan Program and Secondary Suite Incentives Across Canada.
Foreign Buyer Ban Extended
The Prohibition on the Purchase of Residential Property by Non-Canadians Act, originally effective January 1, 2023, was extended to January 1, 2027. This ban prevents non-Canadian citizens and non-permanent residents from purchasing residential property in Canada.
Key Details
| Factor | Current Status |
|---|---|
| Ban effective | January 1, 2023 – January 1, 2027 |
| Who is banned | Non-Canadian citizens and non-permanent residents |
| Exemptions | Refugees, temporary residents meeting criteria, certain work permit holders |
| Property types banned | Residential property (1–3 units) in census metropolitan areas and census agglomerations |
| Penalties | $10,000 fine; court can order sale of property |
For analysis, see: Foreign Buyer Ban Current Status.
Other Regulatory Changes
OSFI Capital Requirements
OSFI continues to adjust capital requirements for federally regulated lenders. These requirements indirectly affect mortgage rates because banks that must hold more capital against mortgage loans pass the cost to borrowers.
Key developments:
- Domestic Stability Buffer (DSB): OSFI adjusts the DSB semi-annually. Higher buffers mean banks set aside more capital, which can translate into slightly higher rates.
- Residential mortgage risk weights: OSFI’s treatment of mortgage risk in bank capital calculations affects how aggressively banks can price mortgages.
For details: OSFI Capital Requirements Impact on Mortgages.
Anti-Flipping Tax
The federal anti-flipping tax, effective January 1, 2023, treats profits from selling a residential property held for less than 365 days as business income (fully taxable) rather than capital gains. Exemptions exist for life events such as job relocation, death, disability, divorce, and family emergencies.
What These Changes Mean for You
If You Are Buying Your First Home
| Change | Impact |
|---|---|
| 30-year amortization | Lower monthly payments; easier to qualify |
| $1.5M insured cap | Can buy in Toronto/Vancouver with less than 20% down |
| CSSLP | Can add a suite after purchase for rental income |
If You Are Renewing
| Change | Impact |
|---|---|
| Stress test removed for switches | You can shop around and switch lenders at renewal |
| Amortization extension options | Extend amortization to reduce payment shock |
If You Are an Investor
| Change | Impact |
|---|---|
| Foreign buyer ban | Less competition from foreign capital in residential market |
| Anti-flipping tax | Must hold properties 365+ days to access capital gains treatment |
| 30-year amortization on new builds | Available if purchasing new construction (not limited to first-time buyers) |