The Mortgage Rules in Canada Right Now: What Changed and What Stayed the Same

Maybe a friend told you the stress test is gone. Maybe you read that 30-year mortgages are back for everyone. You've probably asked yourself, "What are the new mortgage rules in Canada, and do they even apply to me?" Neither of those claims is quite right.

The mortgage rules in Canada did change in a few big ways over the last two years. But a lot stayed the same, and the parts that stayed the same are often the ones that decide your file. This guide walks through each rule in plain English, who it applies to, and what it means for you.

Last verified: October 2026, against the federal regulator (OSFI) and CMHC. Rules can change, so we confirm them on every file.

The Stress Test: Still Here, Still the Same

This is the rule people ask about most, so let's start with it. When you apply for a mortgage at a bank or most other federally regulated lenders, you don't qualify at the rate you'll pay. You qualify at a higher test rate. That test rate is the higher of two numbers:

• your contract rate plus 2%, or
• 5.25%

So if your rate is 4.5%, you're tested at 6.5%. If your rate is 3%, you're tested at the 5.25% floor. You can read the rule on the regulator's minimum qualifying rate page. It reviews the rate at least once a year, and as of 2026 it has kept it the same.

The test applies whether you put down 5% or 50%. It's also why the amount you qualify for is lower than a simple payment calculator suggests. If you want to see how the test plays out against your income, our guide to what disqualifies you from a mortgage covers the ratios lenders use.

One thing people miss: not every lender is bound by this federal rule. Credit unions that are regulated by a province set their own policies, though many use a similar test. Private lenders don't use it at all. They look mostly at the property and your equity, usually want 20% to 25% down or more, and cost more. That's why a file that fails the stress test at a bank isn't always a dead end.

Renewing? You Can Switch Lenders Without Re-Qualifying

This is the change that helps the most people, and the one fewest people know about. Since November 21, 2024, you don't have to pass the stress test to move your mortgage to a new lender at renewal. It's called a straight switch.

Before this, a lot of homeowners felt stuck. Their income had dropped, or rates had gone up, and they worried they couldn't pass the test somewhere new. So they signed whatever renewal offer their bank mailed them. Now you can shop your renewal, as long as two things stay the same:

• the loan amount (you're not borrowing more), and
• the amortization (you're not stretching it out longer).

If you want to add money or extend the amortization, that's a refinance, and you'll be qualified again. A new lender will still check your credit, your income and the property. The switch only removes the stress test, not the whole review. Our post on switching lenders at renewal without the stress test goes through the steps.

30-Year Amortization: Who Can Get It

Amortization is how long it takes to pay off the mortgage in full. A longer amortization means a lower monthly payment, but more interest over time.

If you put less than 20% down, your mortgage needs default insurance. For years, insured mortgages were capped at 25 years. Since December 15, 2024, two groups can choose 30 years instead:

• First-time buyers, buying any type of home, new or resale.
• Anyone buying a newly built home, first-time buyer or not.

There's a small extra insurance premium of 0.20% for choosing 30 years. Everyone else with an insured mortgage is still limited to 25 years. If you put 20% or more down, your mortgage isn't insured, and many lenders already offer up to 30 years.

A longer amortization can help you qualify, because the payment the lender tests is smaller. But it costs more in total. We cover the math in our post on 30-year amortization for first-time buyers.

Down Payment Rules and the $1.5 Million Cap

The minimum down payment rules in Canada didn't change in percentage terms. What changed is the price ceiling for insured mortgages. It went from $1 million to $1.5 million on December 15, 2024. Here's how the minimum works now, as set out by CMHC:

• Home price up to $500,000: 5% down.
• $500,000 to under $1.5 million: 5% on the first $500,000, plus 10% on the rest.
• $1.5 million or more: 20% down. Insurance isn't available at this price.

For example, on a $700,000 home the minimum is $25,000 on the first $500,000 plus $20,000 on the remaining $200,000. That's $45,000 in total. Before the cap went up, a home over $1 million needed 20% down. Now a $1.2 million home can be bought with a lot less, which opened the door for buyers in pricier markets.

With less than 20% down, you'll pay a default insurance premium. It's a percentage of the loan, roughly 2.80% to 4.00% depending on how much you put down, and it's usually added to the mortgage. A rental property you won't live in generally needs at least 20% down, no matter the price.

Refinancing and HELOC Limits: What Stayed the Same

A refinance means replacing your mortgage with a bigger one to take out equity. At a bank or other federally regulated lender, you can generally borrow up to 80% of your home's value. That limit has been in place for years, and refinances can't be insured, so the 80% line is firm in most cases.

There's one exception worth knowing. Since January 15, 2025, you may be able to refinance up to 90% of your home's value if the money is used to build a legal secondary suite, like a basement suite or laneway home. The rules are specific. The home has to stay under a value cap, the work has to meet local bylaws, and not every lender offers it yet.

For a home equity line of credit (HELOC), the part you can borrow and pay back without a set payment is capped at 65% of your home's value. You can go up to 80% in total, but anything above 65% has to be on a regular mortgage with a payment schedule.

The Debt Ratio Rules Lenders Use

These didn't change either, and they're often what decides how much you can borrow. Lenders look at two ratios:

• Gross Debt Service (GDS): your housing costs (mortgage payment at the test rate, property tax, heating, and half of any condo fee) as a share of your gross income. For an insured mortgage, the limit is 39%.
• Total Debt Service (TDS): housing costs plus your other debts, like car loans, credit cards and lines of credit. The limit is 44%.

Banks and credit unions mostly work within those limits. Alternative lenders (B-lenders) can often go up to roughly 50% GDS and 50% TDS, depending on the file. They may also be more flexible on how your income is shown. Private lenders lean on your equity more than your ratios. So the same income can lead to very different answers depending on which lender sees it.

What These Mortgage Rules in Canada Mean for You

Here's the short version, by situation:

• First-time buyer: you may qualify for a 30-year insured amortization, and the $1.5 million cap means a lower down payment on higher-priced homes. You still have to pass the stress test. See our first-time buyer mortgage page for how we help with the full process.
• Renewing: you can shop lenders without the stress test, as long as you keep the same loan amount and amortization. Start about 120 days before your renewal date.
• Refinancing: the 80% limit still applies, with the 90% exception for building a legal suite.
• Self-employed or bruised credit: the stress test and debt ratios apply at the bank, but B-lenders and private lenders work under different limits. There's usually more than one path.

How Gold Lion Mortgages Can Help

Rules are the easy part. The hard part is knowing which ones apply to your file, and which lender reads them in your favour. Two people with the same income can get very different answers at two different lenders.

Surinderpal starts with your full picture: your income, your debts, your down payment and your plans, then matches you with a lender that fits. We work with banks, credit unions, alternative lenders and private lenders, so you see your options side by side. We'll also tell you straight when a rule works against you and what you can do about it.

Call (587) 740-0048 or visit goldlionmortgages.com/apply.

Frequently Asked Questions

What are the new mortgage rules in Canada for 2026?

The biggest recent changes took effect in late 2024 and are still in place in 2026. You can switch lenders at renewal without the stress test, first-time buyers and new-build buyers can get a 30-year insured amortization, and insured mortgages are allowed on homes under $1.5 million. The stress test itself did not change.

Will Canada get rid of the mortgage stress test?

As of 2026, no. The federal regulator reviews the qualifying rate at least once a year and has kept it at the higher of your contract rate plus 2% or 5.25%. The one big change was removing the test for straight switches at renewal.

Do I have to pass the stress test when I renew my mortgage?

Not if you stay with your lender or do a straight switch to a new lender with the same loan amount and amortization. If you borrow more or stretch your amortization, you'll be qualified again, which includes the stress test.

What is the minimum down payment for a house in Canada?

It's 5% on the first $500,000 of the price and 10% on the part between $500,000 and $1.5 million. Homes priced at $1.5 million or more need at least 20% down. A rental property you won't live in also needs at least 20% down.

Who qualifies for a 30-year mortgage in Canada?

With less than 20% down, a 30-year amortization is open to first-time buyers and to anyone buying a newly built home. Everyone else with an insured mortgage is limited to 25 years. With 20% or more down, many lenders offer up to 30 years.

Have a question about a rule we didn't cover? Call Gold Lion Mortgages at (587) 740-0048 or apply online at goldlionmortgages.com/apply.

Published: October 21, 2026. Mortgage guidelines, lender programs, and qualifying requirements change. Contact Gold Lion Mortgages to confirm current requirements for your file.

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