The federal budget was tabled on November 5, 2026. For housing, three things stand out. Ottawa wants to keep the foreign buyer ban on existing homes for two more years. It wants to let foreign buyers purchase new homes. And it wants to widen a type of mortgage insurance so more buyers can get a 30-year amortization. All three are proposals. None is law yet.
What the budget proposes
- Foreign buyer ban on existing homes: extended two years, to January 1, 2029. The ban was set to expire on January 1, 2027.
- New homes exempt: the budget says the ban would continue “while exempting new residential properties.” Ottawa says legislation and regulations will follow. No start date has been given, and “new” has not yet been defined. We do not know yet how presales or completed condos that have never been lived in will be treated.
- Optional mortgage insurance: the home price limit would rise from $1 million to $1.5 million. These insured mortgages could have a 30-year amortization if at least one borrower is a first-time buyer or the home is newly built. No start date has been given.
- Multiplexes: from February 1, 2027, insured construction loans for three- and four-unit homes will have no maximum property value and no requirement to live in one of the units. Private insurers will also be able to insure five- to fifty-unit properties.
- Mortgage rate information: the Bank of Canada would publish insured mortgage rates. Ottawa will also consult on making prepayment penalties more transparent.
The budget does not change the stress test, the FHSA, the RRSP Home Buyers’ Plan or the First-Time Home Buyers’ GST rebate.
Why it matters in the Lower Mainland
Presale condo sales have been slow here, and many new units are sitting unsold. The new-home exemption is aimed at that kind of inventory. Keep in mind that BC’s 20% additional property transfer tax on foreign buyers still applies in Metro Vancouver and the Fraser Valley. That will limit how much demand comes back.
Rates matter too. The Bank of Canada raised its rate to 2.50% on October 28. On November 9, Ratehub’s lowest 5-year fixed rate was 4.44% and its lowest variable was 3.65%. The next rate decision is December 9.
What buyers should do
If you are a first-time buyer with 20% or more down, or you are buying a newly built home, ask your lender or broker whether the $1.5 million optional insurance limit and a 30-year amortization could apply to you once the change takes effect. Do not count on it in your budget until there is a start date.
What sellers and developers should do
If you own a resale home, nothing changes. Foreign buyers remain shut out of existing homes until at least 2029. If you are selling a presale assignment or a new home, watch for the final definition of “new.” Until it is written, I would not market to foreign buyers.
What homeowners should do
If your lot allows a triplex or fourplex, the February 1, 2027 financing changes could make a build easier to fund. Talk to a lender and the City before you plan around it.
I have been in real estate for more than 20 years, and rule changes like these are always clearer once the details are written. If you want to talk through what this means for your move, call or text me at 604-785-5555 or send me a message.
Muzaffar Manghat, REALTOR®, Sutton Premier Realty
Sources
- Government of Canada, Budget 2026, Chapter 3
- Canadian Mortgage Trends, November 5, 2026
- The Hub, November 9, 2026
- Ratehub, best 5-year fixed rates, November 9, 2026
This article is general information, not financial, mortgage or legal advice. Statistics are believed reliable but not guaranteed. This is not intended to solicit buyers or sellers currently under contract with a brokerage.
