Budget 2026 doesn’t change the first-time buyer programs you already know (the GST rebate, the FHSA and the Home Buyers’ Plan). For buyers, it proposes more mortgage flexibility (a higher price limit and 30-year amortizations on some insured mortgages) and tools to make mortgage shopping clearer[2]. The bigger changes are for builders and investors: new insured financing for new three- and four-unit homes and for five- to fifty-unit buildings, starting February 1, 2027[3].
Budget 2026, titled “Masters of our destiny”, was released on November 5, 2026[1]. A budget is a plan, not a law. Some measures already have dates and rules, and many still need legislation or regulations before they apply. So for each one below, I’ve noted whether it’s proposed, announced with a start date, or already in effect. I’m a REALTOR®, not an accountant or lender, so think of this as a starting point for those conversations.
What it means for buyers
- More room on insured mortgages (proposed). The budget proposes raising the home price limit for optional mortgage insurance from $1 million to $1.5 million, and allowing 30-year amortizations on these insured mortgages when at least one borrower is a first-time home buyer or the home is newly built[2]. No start date is published yet.
- Easier rate shopping (proposed). New regulations would have the Bank of Canada publish more information on insured mortgage rates, so borrowers can compare[2].
- Income checks for mortgages (proposed). The Canada Revenue Agency would get authority to offer lenders and mortgage insurers an income verification service, with $13 million over three years, starting in 2027-28, to build and pilot it[2].
- Prepayment penalties (consultation). The government plans to consult on making penalties for paying off an insured mortgage early easier to understand and compare[2].
- Moving for work (proposed). If you relocate for a job or business, you’d have the option to deduct a flat $1,000 instead of tracking each moving expense, for the 2027 and later tax years[4].
- Heat pump rebate (announced; opens early 2027). The National Heat Pump Rebate is a rebate of $2,000, or up to $10,000 for low- to median-income households. Eligible heat pumps installed by an HVAC contractor from November 1, 2026 count retroactively once the program opens, and you have six months to submit receipts[10]. Handy if your new-to-you home still heats with oil or baseboards.
What it means for builders
- New three- and four-unit homes (starts February 1, 2027). Insured loans for building or buying a newly built three- or four-unit home: up to 90% of the projected value, no owner-occupancy requirement, no maximum property value and amortization up to 30 years[3].
- Five to fifty units (starts February 1, 2027). Private mortgage insurers can insure these buildings: up to 90% loan-to-value and 50-year amortization for new construction, with a minimum net worth of 25% of the loan (at least $100,000)[3].
- Equipment write-offs (proposed). The Productivity Mega Deduction, announced in September, would let businesses write off the full cost of most depreciable property acquired on or after September 15, 2026, in the year it’s ready for use[5]. The budget’s own construction examples include excavators, concrete mixers and dump trucks[6]. Buildings in capital cost allowance classes 1 and 3 are left out[5], and Budget 2026 confirms the plan to go ahead[4].
- Faster permits and new building methods (proposed). $100 million over three years for municipal e-permitting and AI-assisted approvals, plus funding for housing data and common standards for modern construction methods[2].
- Financing for homes built to own (not published yet). Consultations ended in September, and the government says it’s exploring options. No details yet[2].
Already in place: the purpose-built rental rebate covers 100% of the GST, or the federal part of the HST, on certain new rental buildings. For New Brunswick’s provincial part, construction has to begin after November 14, 2024 and before 2028, and be substantially completed before 2030. Condo units, single-unit homes, duplexes and triplexes don’t qualify[9].
What it means for investors
- Small multi-unit rentals. The new three- and four-unit insurance rules have no owner-occupancy requirement[3]. The budget’s own example is a builder who keeps a new fourplex and rents out all four homes with an insured mortgage amortized up to 30 years[2].
- The write-off doesn’t cover the building. Buildings in capital cost allowance classes 1 and 3 are excluded from the Productivity Mega Deduction, and there are rules limiting how individuals use it to create or increase a loss[5]. This one is a conversation for your accountant.
- Heat pumps on rentals. The home doesn’t need to be your primary residence, so a rental you own can qualify. Only one rebate is available per household, even if you own more than one property[10].
- Foreign buyer ban (proposed). The ban on non-Canadians buying existing homes would be extended two years, to January 1, 2029, with new homes exempted[2]. It currently runs to January 1, 2027[11].
- Canada Growth Incentive. If you’ve seen headlines about the new capital gains exemption of up to $15 million: its proposed rules leave out businesses in the real estate sector[4].
What hasn’t changed
The first-time home buyers’ GST/HST rebate is already law. It covers up to 100% of the GST, or the federal part of the HST, on a new or substantially renovated first home, up to $50,000. The full rebate applies to homes up to $1 million, and it phases out by $1.5 million[7]. Your agreement with the builder has to be signed on or after March 20, 2025 and before 2031[8]. The FHSA and the RRSP Home Buyers’ Plan stay the same: the budget lists them as existing supports[2], and its tax measures annex doesn’t change them[4]. My post on using the FHSA and the Home Buyers’ Plan together walks through both, and my guide for first-time home buyers in Moncton covers the rest, including New Brunswick’s 1% transfer tax.
Budget news is a lot to take in. My advice: don’t change your plans on a headline. Wait for the rules and start dates to be final, then sit down with your lender and accountant to see what applies to you. I’m happy to help you think it through.
Questions people ask me
Is any of this in effect yet?
Some of it has a start date and some of it doesn’t. The new mortgage insurance rules for new three- and four-unit homes and for five- to fifty-unit buildings start with applications lenders send to insurers on or after February 1, 2027. Most other housing measures in Budget 2026 are proposals that still need legislation or regulations, and the budget doesn’t give them a start date yet.
Did Budget 2026 change the first-time home buyers’ GST rebate, the FHSA or the Home Buyers’ Plan?
No. The budget lists all three as existing supports, and its tax measures annex has no changes to them. The first-time home buyers’ GST/HST rebate is already law: up to $50,000 of the GST, or the federal part of the HST, on a new home, in full for homes up to $1 million.
Can I get the new heat pump rebate on a rental property?
Environment and Climate Change Canada says the home doesn’t need to be your primary residence, so a property you rent out can qualify. You need to own the home, and only one rebate is available per household, even if you own more than one property.
Does the new mortgage insurance for three- and four-unit homes require me to live in one of the units?
No. The Department of Finance’s parameters say there’s no owner-occupancy requirement for insured loans on newly built three- and four-unit homes, with up to 90% of the projected value and amortization up to 30 years. It applies to new construction and newly built homes, not existing ones.
Questions about how this applies to your plans? Call or text me at 506-651-9969, or book a virtual call, or we can meet in real life.
Sources
Checked November 9, 2026. Budget measures are proposals until passed and can change, so please confirm current rules with the Department of Finance, the CRA or your lender.
- Department of Finance Canada, “Government of Canada releases Budget 2026: Masters of our destiny” (news release, November 5, 2026). www.canada.ca
- Budget 2026, Chapter 3: “A more affordable life”. budget.canada.ca
- Department of Finance Canada, “Technical Backgrounder: Mortgage Insurance Rule Changes to Support ‘Missing Middle’ Housing” (November 5, 2026). www.canada.ca
- Budget 2026, “Tax measures: Supplementary information”. budget.canada.ca
- Department of Finance Canada, “Government of Canada introduces new Productivity Mega Deduction…” (backgrounder, September 2026). www.canada.ca
- Budget 2026, Chapter 1: “Canada’s Investment Supercycle”. budget.canada.ca
- Canada Revenue Agency, “What is the first-time home buyers’ rebate”. www.canada.ca
- Canada Revenue Agency, “First-time home buyers’ GST/HST rebate: Who can apply”. www.canada.ca
- Canada Revenue Agency, “GST/HST purpose-built rental housing rebate (PBRH rebate)”. www.canada.ca
- Environment and Climate Change Canada, “National Heat Pump Rebate”. www.canada.ca
- Department of Finance Canada, “Government announces two-year extension to ban on foreign ownership of Canadian housing” (February 4, 2024). www.canada.ca
This post is general information, not financial or tax advice. Talk to your accountant or lender about your own situation.
Rachel Nevers
Full-time REALTOR® with Real Broker serving Moncton, Dieppe, Riverview and the Greater Moncton Area since 2020. Ten years as a paramedic before that. I answer my phone: 506-651-9969.