Budget 2026: Housing
Budget 2026 builds on Build Canada Homes with a proposed $13 billion capital increase and funding to service federal land. For buyers, it extends the foreign purchase ban on existing homes, changes mortgage insurance for three- to fifty-unit properties from February 1, 2027, and says options for homeownership financing are still being explored. For rental supply, it proposes widening the interest deductibility exception for purpose-built rental housing.
Non-market housing and federal land
Capital for Build Canada Homes and servicing of federal land for housing.
Sources
Budget 2026 proposes to provide an additional $13 billion over ten years, on a cash basis, starting in 2028-29, to boost the capital of Build Canada Homes and supercharge non-market housing across this country. All told, the investments in this Budget will set Build Canada Homes on a path to deliver 200,000 new homes across the country in the next decade, making its total capitalisation $45 billion.
Budget 2026 - Masters of our Destiny · PDF p. 215Full cited page
Budget 2026 proposes to provide an additional $13 billion over ten years, on a cash basis, starting in 2028-29, to boost the capital of Build Canada Homes and supercharge non-market housing across this country. All told, the investments in this Budget will set Build Canada Homes on a path to deliver 200,000 new homes across the country in the next decade, making its total capitalisation $45 billion.
Budget 2026 proposes to provide $1.5 billion over four years, starting in 2027-28, and $387.4 million in future years to prepare federal lands for housing by funding water, wastewater, roads, and other enabling infrastructure.
Budget 2026 - Masters of our Destiny · PDF p. 216Full cited page
Budget 2026 proposes to provide $1.5 billion over four years, starting in 2027-28, and $387.4 million in future years to prepare federal lands for housing by funding water, wastewater, roads, and other enabling infrastructure.
For-sale housing and buyers
Mortgage insurance changes, the foreign purchase ban, buyer supports and pending ownership financing options.
Sources
Budget 2026 announces that the government is delivering on the commitment in the Spring Economic Update 2026 to change mortgage insurance rules to help unlock financing for “missing middle” homes. Changes include new mortgage insurance flexibilities for three- and four-unit homes, and permitting private mortgage insurers to offer mortgage loan insurance on five- to fifty-unit residential properties. The Department of Finance Canada has published a technical backgrounder outlining the parameters for these changes, which will come into effect on February 1, 2027.
Budget 2026 - Masters of our Destiny · PDF p. 217Full cited page
Budget 2026 announces that the government is delivering on the commitment in the Spring Economic Update 2026 to change mortgage insurance rules to help unlock financing for “missing middle” homes. Changes include new mortgage insurance flexibilities for three- and four-unit homes, and permitting private mortgage insurers to offer mortgage loan insurance on five- to fifty-unit residential properties. The Department of Finance Canada has published a technical backgrounder outlining the parameters for these changes, which will come into effect on February 1, 2027.
Budget 2026 proposes to expand access to insured construction financing for newly built three- and four-unit housing. With these changes, the homebuilder could obtain a loan insured by any mortgage loan insurer for up to 90% of the property’s value, with no maximum property value and no requirement to occupy one of the units.
Budget 2026 - Masters of our Destiny · PDF p. 218Full cited page
Budget 2026 proposes to expand access to insured construction financing for newly built three- and four-unit housing. With these changes, the homebuilder could obtain a loan insured by any mortgage loan insurer for up to 90% of the property’s value, with no maximum property value and no requirement to occupy one of the units.
Budget 2026 proposes to extend the ban on foreign purchases of existing residential properties for two years, to January 1, 2029, while exempting new residential properties.
Budget 2026 - Masters of our Destiny · PDF p. 217Full cited page
Budget 2026 proposes to extend the ban on foreign purchases of existing residential properties for two years, to January 1, 2029, while exempting new residential properties.
The Spring Economic Update 2026 announced consultations on new financing measures to help homebuilders build more homes for Canadians to own, faster. Housing, Infrastructure and Communities Canada completed these consultations in September, and we are now exploring a range of options based on the feedback received.
Budget 2026 - Masters of our Destiny · PDF p. 218Full cited page
The Spring Economic Update 2026 announced consultations on new financing measures to help homebuilders build more homes for Canadians to own, faster. Housing, Infrastructure and Communities Canada completed these consultations in September, and we are now exploring a range of options based on the feedback received.
First-time home buyers are saving up to $50,000 through the removal or reduction of the Goods and Services Tax (GST) on new homes.
Budget 2026 - Masters of our Destiny · PDF p. 202Full cited page
First-time home buyers are saving up to $50,000 through the removal or reduction of the Goods and Services Tax (GST) on new homes.
Support for homebuyers through the First-Time Home Buyers’ GST rebate, the Tax-Free First Home Savings Account, and RRSP Home Buyer’s Plan
Budget 2026 - Masters of our Destiny · PDF p. 210Full cited page
Support for homebuyers through the First-Time Home Buyers’ GST rebate, the Tax-Free First Home Savings Account, and RRSP Home Buyer’s Plan
Rental supply: financing and tax
Interest deductibility exception changes, existing rental loans, and the equipment deduction for builders.
Sources
Budget 2024 announced an exception to the EIFEL rules for interest and financing expenses incurred before 2036 by a taxpayer on borrowings used by the taxpayer to acquire or build purpose-built rental housing in Canada, or convert a property into such housing.
Budget 2026 - Masters of our Destiny · PDF p. 421Full cited page
Budget 2024 announced an exception to the EIFEL rules for interest and financing expenses incurred before 2036 by a taxpayer on borrowings used by the taxpayer to acquire or build purpose-built rental housing in Canada, or convert a property into such housing.
Budget 2026 proposes to expand the two EIFEL exceptions to cover a borrower’s interest and financing expenses where the borrowed funds are used for eligible activities carried on by another corporation, trust or partnership within the same group of affiliated entities.
Budget 2026 - Masters of our Destiny · PDF p. 422Full cited page
Budget 2026 proposes to expand the two EIFEL exceptions to cover a borrower’s interest and financing expenses where the borrowed funds are used for eligible activities carried on by another corporation, trust or partnership within the same group of affiliated entities.
affiliated entities) has at least a 40 per cent interest.
Budget 2026 - Masters of our Destiny · PDF p. 422Full cited page
affiliated entities) has at least a 40 per cent interest.
Rental construction is being supported by the Apartment Construction Loan Program, which has committed $32 billion in loans to support the construction of over 80,000 new rental homes across Canada.
Budget 2026 - Masters of our Destiny · PDF p. 209Full cited page
Rental construction is being supported by the Apartment Construction Loan Program, which has committed $32 billion in loans to support the construction of over 80,000 new rental homes across Canada.
GST rebate on purposebuilt rental
Budget 2026 - Masters of our Destiny · PDF p. 210Full cited page
GST rebate on purposebuilt rental
The Productivity Mega Deduction will help builders invest in the machinery, equipment, and technologies needed to complete projects more quickly and efficiently.
Budget 2026 - Masters of our Destiny · PDF p. 217Full cited page
The Productivity Mega Deduction will help builders invest in the machinery, equipment, and technologies needed to complete projects more quickly and efficiently.
In September 2026, we announced the Productivity Mega Deduction.
Budget 2026 - Masters of our Destiny · PDF p. 121Full cited page
In September 2026, we announced the Productivity Mega Deduction.
Analysis of cited budget provisions. Proposals and forecasts are distinguished from implemented measures.
