The short version for Canadian buyers
- The insured-mortgage cap is $1.5 million. Minimum down payment is 5% on the first $500,000 of the price, plus 10% on the portion between $500,000 and $1,499,999.
- Insured mortgages are typically capped at a 25-year amortization. First-time home buyers and buyers of newly built homes may qualify for 30 years.
- Qualification typically requires a minimum credit score of 600, Gross Debt Service (GDS) at or below 39%, and Total Debt Service (TDS) at or below 44%.
- You also need to pass the federal stress test — qualifying at the higher of your contract rate plus 2% or 5.25%.
Why these rules matter more in 2026
You have probably heard that "the mortgage rules changed." What you may not know is exactly what changed, or whether it helps you.
In December 2024, the federal government raised the insured-mortgage cap from $1 million to $1.5 million and expanded access to 30-year amortizations. On March 12, 2026, the First-Time Home Buyers’ GST/HST rebate received Royal Assent, offering eligible buyers of new-build homes up to $50,000 back. Together, these changes have rewritten the playbook for anyone buying with less than 20% down.
This guide walks through the current CMHC framework in plain English. If you are new to buying, our first-time home buyer guide is a useful companion read.
Quick start: find the rules that apply to you
The rules often get explained as one long block. In practice, only a few apply to you. Pick the path below that matches your situation.
First-time buyer · under $1M
Put down as little as 5%, qualify for a 30-year amortization, and may qualify for the new GST rebate on a new build.
First-time buyer · $1M–$1.5M
Tiered down payment (5% plus 10%), 30-year amortization available, and may receive a partial GST rebate up to $50,000.
Move-up or repeat buyer
CMHC insurance available up to $1.5 million, but 30-year amortization is typically only available on newly built homes.
Buying at or above $1.5M
CMHC insurance is not available. Minimum 20% down payment required. Mortgage will be conventional.
Not sure how much home your income supports? The mortgage affordability calculator is a good first sanity check.
Minimum down payment: the 5% and 10% tier explained
The rule is simpler than it sounds. Apply 5% to the first $500,000, then 10% to whatever is left, up to the $1.5 million ceiling. Two quick examples (illustrative only):
A $600,000 home requires $35,000 down — 5% of $500,000 ($25,000) plus 10% of the remaining $100,000 ($10,000). An $850,000 home requires $60,000 down, using the same formula.
The jump at $1.5 million is the threshold to watch. A $1,499,999 home may qualify for insurance with $125,000 down. A $1,500,000 home requires $300,000, because the 20% minimum kicks in and insurance is no longer available. Run your numbers in the down payment calculator.
Amortization: when you qualify for 30 years instead of 25
This is the single most misunderstood rule in the 2026 framework. "You can get a 30-year mortgage now" only tells half the story.
If you are a first-time home buyer, you may qualify for a 30-year amortization on any eligible insured purchase, new or resale. If you are not a first-time buyer, 30-year amortization is typically only available when the home is newly constructed.
The trade-off is real: a 30-year amortization lowers your monthly payment but increases total interest paid over the loan’s life. The insurance premium also carries approximately a 20-basis-point surcharge with the longer amortization. Our deep-dive on the truth about 25 vs. 30-year amortization walks through the math.
What CMHC insurance actually costs
Mortgage default insurance is paid by you but protects the lender, not you. The premium is a percentage of your mortgage amount, and the smaller your down payment, the higher the rate.
Premium rates typically fall into three bands, published by CMHC and mirrored closely by Sagen and Canada Guaranty. Each insurer maintains its own schedule, which can change.
Most borrowers roll the premium into the mortgage balance rather than paying it at closing — convenient, but you pay interest on it over the full term. On a $500,000 mortgage with 5% down, a 4% premium adds roughly $20,000 to your principal. The CMHC insurance calculator will run your exact numbers.
How lenders check if you can afford it: GDS, TDS, and the stress test
Lenders use two ratios. Gross Debt Service (GDS) is the share of gross income spent on housing — mortgage principal and interest, property taxes, heating, and 50% of condo fees. Total Debt Service (TDS) adds every other debt payment — car loans, credit cards, student loans, lines of credit. Insured-mortgage ceilings: 39% and 44%.
The mortgage stress test is a federally mandated qualification rule requiring Canadian borrowers to prove they can afford payments at a rate higher than their contract rate. The qualifying rate is currently the higher of your contract rate plus 2% or 5.25%.
Since November 21, 2024, uninsured borrowers doing a straight switch to a new lender at renewal no longer need to re-qualify at the stress-test rate. Our Canadian mortgage stress test guide covers the mechanics.
Step-by-step: getting an insured mortgage in 2026
The process is shorter than most first-time buyers assume. Five steps, broker-led:
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1
Confirm your buyer category First-time buyer? New construction? Near the $1.5 million threshold? Your category determines which rules apply.
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2
Calculate your tiered minimum down payment Apply the 5% and 10% bands. Keep closing costs (1.5% to 4%) separate from the down payment.
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3
Run the GDS and TDS math against your income This tells you whether your target price is actually serviceable on paper.
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4
Shop all three insurers and multiple lenders CMHC, Sagen, and Canada Guaranty have aligned rules but different preferences. A broker files to more than one and compares.
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5
Secure a pre-approval certificate This is the document you bring to offers. Pegasus can typically issue an instant pre-approval certificate in minutes.
The 2026 update most buyers haven’t heard yet: FTHB GST/HST rebate
The rebate applies to purchase agreements entered into on or after March 20, 2025 and before 2031, for new-build or substantially renovated homes used as a primary residence.
The "first-time buyer" definition uses a four-year look-back: neither you nor your spouse or common-law partner can have lived in a home either of you owned in the current calendar year or the four preceding years. Neither of you can have previously claimed this rebate.
One point worth flagging: in its 2026 budget, Ontario announced a proposed provincial HST rebate that would stack on top of the federal rebate. As of this writing, the Ontario proposal has not yet received Royal Assent.
Common mistakes buyers make with CMHC rules
- ✗Confusing CMHC with mortgage protection insurance. CMHC default insurance protects the lender. Mortgage life insurance is a separate product that protects your family.
- ✗Assuming 20% down always beats 5% down. Insured mortgages often carry lower rates; a one-time premium can cost less than delaying to reach 20%.
- ✗Expecting 30-year amortization without checking buyer category. A non-first-time buyer purchasing resale is typically on the 25-year cap.
- ✗Budgeting to $1.5M without confirming GDS/TDS fit. A $1.2M mortgage may require household income well above $170,000.
- ✗Borrowing the down payment from an unapproved source. CMHC and Sagen generally require your own savings or a gift from an immediate relative.
- ✗Forgetting the premium earns interest. Rolling it into the mortgage is standard, but you pay interest on it for the full amortization.
Complex files: when the rules don’t cover your situation
Self-employed borrowers using stated-income products, applicants repairing credit after a consumer proposal, and investors structuring Individual Producer-Related Residential Exposures (IPRRE) each hit edge cases the GDS/TDS framework doesn’t handle cleanly. Most of these files can still be placed — but they typically need alternative lenders, B-lenders, or private solutions instead of the major banks.
That is where a broker with specific complex-file experience earns their fee. Razi Khan, Founder and Mortgage Broker at Pegasus, has spent more than two decades on alternative and self-employed files specifically, and files that other brokers declined to take on.
Frequently asked questions about CMHC rules in 2026
What is the maximum home price I can buy with CMHC insurance in 2026?
How much do I need to put down on a $1.2 million home in Canada?
Do I qualify for a 30-year mortgage if I’m not a first-time buyer?
What credit score do I need to get approved for an insured mortgage?
Is CMHC insurance still required if I put down 20% or more?
What’s the difference between CMHC, Sagen, and Canada Guaranty?
Can I use a gift from my parents for my down payment?
Do the new 2026 rules apply to renewals or only new purchases?
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About the author
Razi Khan
Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479
Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.
Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.
Learn more about Razi Khan →Sources & References
- Canada Mortgage and Housing Corporation — CMHC Mortgage Loan Insurance Explained. https://www.cmhc-schl.gc.ca/consumers/home-buying/mortgage-loan-insurance-for-consumers
- CMHC — Purchase Mortgage Loan Insurance (professional guidance). https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/mortgage-loan-insurance-homeownership-programs/purchase
- CMHC — Calculating GDS / TDS. https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/calculating-gds-tds
- Department of Finance Canada — Government of Canada raises insured mortgage limit to $1.5 million and expands 30-year amortizations (September 16, 2024).
- Canada Revenue Agency — First-Time Home Buyers’ (FTHB) GST/HST Rebate. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html
- Office of the Superintendent of Financial Institutions — Minimum qualifying rate for uninsured mortgages. https://www.osfi-bsif.gc.ca/en/supervision/financial-institutions/banks/minimum-qualifying-rate-uninsured-mortgages
- OSFI — Guideline B-20: Residential Mortgage Underwriting Practices and Procedures.
- OSFI — OSFI exempts uninsured mortgage straight switches from the prescribed MQR (November 21, 2024).
- Government of Canada — Homebuyer Incentives and Rebates. https://www.cmhc-schl.gc.ca/consumers/home-buying/government-of-canada-programs-to-support-homebuyers