The federal government's 2026 Budget introduces several measures aimed at improving mortgage accessibility, strengthening fraud prevention, increasing lender competition and supporting housing supply across Canada.
For mortgage professionals, the budget includes developments that could influence mortgage financing options, lending practices and consumer protections. Several proposals also align with priorities Mortgage Professionals Canada (MPC) has consistently advocated for on behalf of the mortgage industry.
Here are six key measures of relevance to mortgage professionals.
Budget 2026 proposes establishing a national income verification service through the Canada Revenue Agency (CRA) to help combat mortgage fraud and improve the reliability of mortgage applications.
The government proposes investing $13 million over three years, beginning in 2027–28, to develop and pilot the service, alongside legislative amendments allowing the CRA to enter into agreements with mortgage lenders and insurers.
MPC has long advocated for stronger income verification measures to protect consumers and strengthen the integrity of Canada's mortgage system. The association will continue advocating to ensure mortgage brokers and brokerages are included as the service is developed.
The budget proposes increasing the home price limit for optional mortgage insurance from $1 million to $1.5 million and allowing 30-year amortizations for these insured mortgages when at least one borrower is a first-time homebuyer or the property is newly built.
These changes could provide lenders with greater flexibility, encourage competition and expand financing options for eligible borrowers.
The proposals align with MPC's ongoing advocacy for mortgage insurance reforms that support greater lender competition and improved access to financing.
Budget 2026 outlines measures intended to strengthen competition across Canada's financial sector, including introducing competition as a secondary objective within the Office of the Superintendent of Financial Institutions' (OSFI) mandate.
Additional proposals would make it easier for new financial institutions to enter the market and support the growth of challenger banks and credit unions.
Increased lender competition could create more financing options for Canadians and strengthen the role of mortgage brokers in helping borrowers compare products from multiple lenders.
The federal government proposes improving public access to insured mortgage rate information through new regulations supporting publication by the Bank of Canada.
The budget also outlines plans to consult with industry stakeholders on potential reforms to improve transparency around mortgage prepayment penalties.
Greater transparency could help borrowers better understand mortgage costs, compare available financing options and make informed decisions. Mortgage professionals will continue to play an important role in helping clients navigate these considerations.
New mortgage insurance measures, scheduled to take effect February 1, 2027, aim to support the construction and purchase of smaller multi-unit residential properties.
The changes include expanded insurance eligibility for newly built three- and four-unit properties, with financing of up to 90% of property value and amortizations of up to 30 years, subject to eligibility requirements.
Private mortgage insurers would also be permitted to insure eligible residential properties containing five to fifty units.
These measures are intended to improve access to financing for smaller residential developments and support increased housing supply.
Budget 2026 proposes extending the federal prohibition on foreign purchases of existing residential properties until January 1, 2029, while introducing an exemption for newly built residential properties.
The proposed approach is intended to maintain restrictions on foreign investment in existing housing while encouraging additional investment in new residential construction.
Several measures outlined in Budget 2026 reflect longstanding priorities advanced by Mortgage Professionals Canada, particularly stronger mortgage fraud prevention and expanded mortgage insurance flexibility.
While these proposals represent developments for the mortgage industry, many will require further legislative changes, regulatory development or consultation before implementation.
MPC will continue engaging with federal policymakers and industry stakeholders to ensure the perspectives of mortgage brokers are represented as these measures move forward.