Canadian mortgage rules and stress test thresholds are set by the federal government and the Office of the Superintendent of Financial Institutions (OSFI) and change periodically. Flowers Team Real Estate always connects clients with up-to-date mortgage professionals to ensure you are working with current information.

Key mortgage rules in Canada as of early 2026 — verify current details with your mortgage broker:

• Stress test — borrowers must qualify at the greater of their contract rate plus 2%, or 5.25%. This applies to both insured and uninsured mortgages at federally regulated lenders. Set by OSFI Guideline B-20.
• Maximum amortization — insured mortgages have been extended to a 30-year amortization for first-time buyers purchasing new construction. Other scenarios may still be capped at 25 years. Verify current eligibility rules with your broker.
• CMHC eligibility extended — the maximum purchase price eligible for CMHC-insured mortgages was raised to $1.5 million in late 2024, expanding options for buyers in higher-priced markets like Milton.
• Residential Property Flipping Rule — properties sold within 365 days of purchase are treated as business income (100% taxable), not capital gains.
• Foreign Buyer Ban — the Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts foreign nationals from purchasing residential property in Canada, with specific exceptions.

Mortgage rules in Canada change regularly. The most important step is working with a qualified, independent mortgage broker who is current on all federal and provincial rules. Flowers Team Real Estate can connect you with trusted partners. Contact us today.