Keeping Track of Mortgage Rule Changes

A list of recent mortgage rule changes.

These changes have either been announced or are scheduled to take effect, and effective opening or closing dates are subject to change.

MARCH 25, 2026
Ontario only – HST rebate for first-time home buyers of new builds

The full 13% Harmonized Sales Tax (HST) will be removed from purchases of newly built homes (priced up to $1M) for one year, effective April 1, 2026 – March 21, 2027.

NOVEMBER 15, 2025
National – Insured refinances for secondary suites (discontinued later in 2025)

This proposed policy, accessing an insured refinance for up to 90% of 'improved property' value (capped at a $2M home value) for construction funds, with the ability to extend to a 30-year amortization, was an attempt to encourage on-the-property density, ideally helping to alleviate the housing and rental supply crunch while offering a potential added (rental) income source for budget-challenged owners.

Even though there was borrower interest, most lenders weren't on board, as construction funds would need to be provided through a construction-draw refinance (funds released in stages or held in trust until the suite is built), which would introduce significant financing complications. This idea didn't have the process supported or thought through, and it died on the vine.

MAY 27, 2025
National – GST rebate for first-time home buyers of new builds

This rebate is available for 100% of the GST for first-time purchasers of newly built homes up to $1M, and a scaled rebate between $1M and $ 1.5M. Read more here for eligibility and how it works.

QUARTER 1 of 2025
National – LTI cap on uninsured mortgages

OSFI introduced a cap on the number of new uninsured mortgages in bank portfolios that are more than 4.5 times a borrower's annual gross income (the cap will vary by lender).

This new rule may impact first-time home buyers the most, reducing how much home they can afford based on their income (in addition to the TDS ratios already in place) when getting a mortgage approval through a traditional lender.

As rates fall (when and if they do), this regulation has the capacity to reduce the number of single-property homeowners in Canada and favour higher-income earners and property investors, especially in higher-priced markets such as Vancouver and Toronto. (Renewals and refinances aren't included in the lender LTI cap.)

AUGUST 1, 2024
National – Extend to 30-year amortization for first-time buyers of new builds

The federal government allowed a 30-year extension for first-time buyers only for insured new-build mortgage purchases.

AUGUST 1, 2024
National – Premium surcharge added to first-timer 30-year extension rule

The premium surcharge added by CMHC is in response to the new 30-year extension rule, which accounts for the capital impact of these mortgage-length extensions, while also supporting CMHC’s mandate to promote housing affordability.

NOVEMBER 21, 2024
National – Removal of the OSFI mortgage stress test requirement for straight, stand-alone uninsured renewal switches

Removing this rule will help more homeowners find a better deal. The stress-test requirement had already been eliminated for insured switches, as re-emphasized in October 2023 by the then Liberal government in its Canadian Mortgage Charter.

DECEMBER 15, 2024
National – Insured mortgage changes

These rules aim to help more home buyers enter the real estate market by addressing the current housing market realities of higher home prices and interest rates.

• An increase in the home-price cap from $1M to $1.5M for insured mortgages (for primary and secondary home purchases, excluding investor purchases) will allow less than a 20% down payment in more expensive markets and access to lower insured mortgage rates.
  
• All first-time and all new-build buyers can extend an insured mortgage to 30 years from the standard 25-year amortization, which will help lower mortgage payments and improve stress-test qualification. This rule expands on the 30-year insured amortization exception rolled out on August 1 (above).
• A 30-year insured mortgage comes with an added insurance premium.

Mortgage Rule Proposals

Update: OSFI chooses not to eliminate the borrower mortgage stress for uninsured mortgages (early 2026).

In October 2024, OSFI quietly mentioned (in a fireside chat, no less) that the above bankside LTI cap regulation may eventually replace the borrower-side mortgage stress test entirely for uninsured mortgages.

But in early 2026, OSFI announced that the current requirements outlined by the borrower-side stress test will not be altered.

Read more: Wait, is the mortgage stress test going away in 2025?

How often are rule changes proposed?

The federal government tables potential budget changes bi-annually. Read through their latest housing measure proposals.

OSFI reviews mortgage rules at least once per year (usually in December), and may propose changes to address current issues or provide forward guidance.

Once it consults with the industry, successful proposals may be formalized, which can take weeks to months to become official, depending on how easily lenders can implement the changes.

Pushed around by outside pressure?

The federal government may enact certain changes to mortgage rules as part of an election platform or a recent promise. However, doing so without industry consultation (for example, as a move to secure more votes or public favour) can lead to detrimental economic impact.

The banking governance body, OSFI, typically doesn't respond to political pressure — revising or proposing rules based on its assessment of the banking industry's conditions, needs, or security.

However, OSFI's regulations aren't always popular with all players in the government or mortgage industry, which sometimes leads to feedback and pressure to implement or reverse changes.

It rarely succumbs to that pressure, however, and only if it agrees. For example, in OSFI's 'sudden' 2024 mortgage rule change, the required stress test was finally dropped on uninsured renewal switches.

Despite years of pressure from the mortgage industry and the federal government, OSFI didn't relent until it had clear reasons of its own to relax this rule, given the economic climate and declining interest rates.

What mortgage rules changed in 2023?

OSFI made no changes to the stress test in 2023. However, it did:

• Require lenders to hold more capital for amortizing fixed-payment variable-rate mortgage products.
• October 2023 – Highlight a rule buried in the fine print that lenders can drop the stress-test requirement for eligible insured mortgage renewals.
• November 2023 – Limit the borrowing room on re-advanceable home equity lines of credit to a maximum of 65% loan-to-value rather than the 80% LTV previously allowed.

It mulled other changes that didn't go through, such as:

• Raise debt-service ratios further (used to qualify mortgage applications) — many lenders have tightened these limits on their own
• Reduce or eliminate case-by-case lender exceptions to the stress-test regulations (based on application strength)
• Changes to the stress test itself (no changes made)

Before 2023? More mortgage rule changes.

There have been several changes in the past few years, including:

• Confused By Your Rate Options? 2016
• Refinance Rule Changes 2016
• CMHC Tightens Rules 2020
• CMHC Loosens Rules 2021
• Tougher Stress Test Rules June 2021 — revised affordability rules set out by the federal government
• Say goodbye to your stress test rate of 5.25% 2022

OSFI sentiment assumes that home buyers seek to max out their affordability.

"OSFI seems to have an assumption that Canadians will buy as 'much home' as possible," Dan Eisner, True North CEO, observes. "But we haven't really seen that with our clients." From what he sees, Canadians are very diligent about not taking on too much mortgage.

Dan explains further:

"Our True North and THINK Financial clients often come to us with a very good idea of the size of mortgage and payments they can handle. Even if we provide them with higher numbers based on their details, they'll often say, 'This is what I feel I can afford.'

"Canadians, for the most part, aren't going to buy a house unless they feel secure in their jobs and situations. If someone is nervous about their income, they typically don't buy a home until they feel more secure. No one wants that mortgage payment stress, and our clients tend to make relatively prudent decisions to avoid it."

Looking for more first-time home buyer changes?

For changes to federal government programs affecting first-time home buyers, such as tax-free savings products, please visit our First-Time Home Buyers page.

We rate-squeeze the lenders (in a friendly way) to help you save.

Whether you're a first-time or next-time buyer, or have an insured or uninsured mortgage, getting your best rate for your situation can help you save thousands.

Our expert, friendly brokers shop the lenders and options for you, securing deals you may not have known existed.

We can also provide unbiased advice on strategies to improve your home affordability and mortgage approval numbers.

Have questions about changes to mortgage rules?

We're here for you, anywhere in Canada. Our friendly experts are real people who really know mortgages. Give us a shout today!