Mortgage guides 2026

🇨🇦 CMHC mortgage insurance (2026)

If your down payment is less than 20%, you’ll need mortgage default insurance from CMHC (or private insurers Sagen / Canada Guaranty). For 2026, premiums are unchanged but the purchase price cap for insured mortgages remains at $1.5 million. Premiums are added to your mortgage and range from 2.8% to 4.0% of the loan, depending on down payment.

📊 Mortgage stress test – still in effect

All federally regulated lenders must apply the stress test, even for insured mortgages. For 2026, the qualifying rate is the greater of 5.25% or your contract rate + 2%. This ensures you could handle higher rates in the future. Most borrowers qualify at ~7–8% depending on the lender.

Mortgage type	Stress test rate (minimum)	Typical contract rate (2026)
Insured (down payment <20%)	5.25%	4.5% – 5.2% fixed
Uninsured (down payment ≥20%)	5.25% or contract +2%	4.8% – 5.5% fixed

🏡 2026 mortgage rate trends

After several Bank of Canada rate holds, 2026 brings modest relief: 5‑year fixed rates hover around 4.7% – 5.2% for insured mortgages, while variable rates are roughly prime (currently 6.7%) minus 0.6% – 1.0%. Many economists expect slow decreases in the overnight rate through late 2026.

• Fixed rates – stability, penalties may be high if you break early.
• Variable rates – typically lower initial rate, but payments fluctuate with prime.
• Short‑term (1‑3 years) – good if you expect rates to drop further.

🔄 Refinancing your mortgage

You can refinance up to 80% of your home’s value (loan‑to‑value). Popular reasons: debt consolidation, home renovations, or investment. The stress test also applies when refinancing, and you’ll need to qualify at the higher rate. As of 2026, many lenders offer cash‑back refinance promotions for existing clients.

🧾 First‑time buyer programs (2026)

• First Home Savings Account (FHSA) – contribute up to $8,000/year (lifetime $40,000), tax‑deductible, and withdrawals for a home purchase are tax‑free.
• Home Buyers’ Plan (HBP) – RRSP withdrawal limit increased to $35,000 (per person). Repayment period: 15 years.
• GST/HST new housing rebate – recover part of the GST on a newly built home (if priced under $450,000, partial up to $480,000).
• Provincial programs – e.g. BC’s first‑time buyer property transfer tax exemption, Ontario’s land transfer tax rebate.

⚖️ Fixed vs variable – quick comparison

	Fixed	Variable
Rate stability	Predictable payments	Fluctuates with prime
Penalty for breaking	IRD + 3 months interest (often high)	3 months interest
Typical 2026 rate	4.7% – 5.2%	prime – 0.8% (~5.9% – 6.2%)

Most experts recommend fixed for peace of mind, but variable can save money if rate cuts continue.

Provincial quirks

Mortgage rules are federal, but property transfer taxes, land titles, and first‑time buyer rebates differ. For example, in Alberta no land transfer tax; in Toronto an additional municipal land transfer tax applies.

📅 Last updated: March 2026 – based on OSFI guidelines and CMHC announcements.