Buyer · Financing
It is the step that must come before showings, not after. Here is exactly what the federal rules of 2026 let you buy.
A mortgage pre-approval sets your purchase range and holds a rate, generally for 90 to 120 days depending on the lender. It does not, however, guarantee final financing: your situation must remain unchanged until disbursement. Three federal rules determine what you can buy in 2026. First, the stress test, still in force: you must qualify at the higher of your contract rate plus two percentage points and 5.25%. Then the minimum down payment: 5% up to $500,000, 10% on the portion above, and 20% from $1.5 million. Finally, amortization, capped at 25 years with insurance, except for first-time buyers and buyers of newly built properties, eligible for 30 years since December 2024.
A pre-approval does two things: it gives you a realistic price range and it holds a rate, generally for 90 to 120 days depending on the institution. What it does not do is guarantee final financing. The lender will revalidate your file before disbursement, and the rate hold expires if the transaction is not completed within the delay. In practice, between your pre-approval and the signing at the notary, keep your situation stable: no job change, no new car loan, no major purchase on credit, no massive withdrawal of your cash. It is the moment where files derail most often, almost always for avoidable reasons.
It is still there. You must show you could carry your payments at the minimum qualifying rate, that is the higher of your contract rate plus 2 percentage points and 5.25%. A useful distinction: the Office of the Superintendent of Financial Institutions sets this rule for uninsured loans, while the Department of Finance Canada sets it for insured loans. An important relaxation took effect on November 21, 2024 and concerns renewals: when a borrower simply transfers an uninsured loan from one federally regulated institution to another, without increasing the amount or lengthening the amortization, the stress test no longer applies. Shopping your renewal at a competitor no longer forces you to requalify, which restores your bargaining power with your current lender. For insured loans, switching lenders at renewal without a new test was already possible.
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% |
| $500,000 to $1.5 million | 5% on the first $500,000 plus 10% on the excess |
| $1.5 million or more | 20% (uninsurable loan) |
The insurability cap rose from $1 million to $1.5 million on December 15, 2024, widening access to reduced down payments in the pricier segments of the market. To build the down payment, the FHSA and the HBP remain the strongest tools.
Since December 15, 2024, the maximum amortization of an insured loan went from 25 to 30 years for two categories of borrowers: all first-time home buyers, whatever the type of property, new or existing, and all buyers of a newly built property, even if it is not their first purchase. The effect is double. The longer amortization lowers the monthly payment and therefore improves qualification under the stress test, increasing the accessible amount. It also increases the total interest paid over the life of the loan and comes with a 0.20% insurance surcharge. It is a trade-off between buying power today and total cost tomorrow, not a gift.
If your down payment is under 20%, your loan must be insured and a premium is added, calculated as a percentage of the amount borrowed: 0.60% with 35% down or more, 1.70% at 25%, 2.40% at 20%, 2.80% at 15%, 3.10% at 10%, 4.00% at 5%. Add 0.20% if the amortization exceeds 25 years: a 5% down payment over 30 years therefore gives 4.20%. And here is the trap almost nobody anticipates: in Quebec, the premium is subject to the 9.975% QST, and that tax must be paid in cash at closing. It cannot be added to the loan. On a premium of several thousand dollars, that is a few hundred dollars to set aside in cash, on top of your other closing costs.
Pre-approval first, showings second. It is the only sequence that lets you choose rather than hope, and the only one that makes you credible when a seller receives several offers.
Generally 90 to 120 days depending on the lender, which is the length of the rate hold. The lender revalidates the file before disbursement.
The higher of your contract rate plus 2 percentage points and 5.25%. Since November 21, 2024, it no longer applies when you switch lenders at renewal on an uninsured loan without increasing the amount or the amortization.
Since December 15, 2024, first-time buyers of any property and buyers of newly built properties, on insured loans, with a 0.20% insurance surcharge.
Also available in French: version française de ce guide.
Published September 1, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
Équipe no 1 de RE/MAX Platine en 2024 et en 2025, 6e au Québec, 15e au Canada et dans le top 50 mondial au classement officiel RE/MAX. Réponse en moins de 24 heures, sept jours sur sept.