OTTAWA, Nov. 5, 2026: Finance Minister François-Philippe Champagne tabled Budget 2026: Masters of our destiny on November 5, 2026. For landlords and tenants across Canada, its housing measures add money for homelessness and non-market housing, renew the Canada Housing Benefit and change mortgage insurance for small rental buildings. Most measures are proposals that still need legislation or regulations.
What is in Budget 2026 for housing?
Budget 2026 puts $44.7 billion over 11 years, on a cash basis, into housing, according to the Department of Finance's key measures. Chapter 3.2 ("Building the homes Canada needs") sets out three pillars:
- Homelessness: $11.2 billion over four years from 2027-28, and $17.8 billion in future years, toward a goal of ending homelessness within 10 years. This includes a new $1.8 billion Integrated Supports Fund and $3.6 billion for supportive and transitional housing, both through Build Canada Homes, and a 10-year renewal of Reaching Home.
- Non-market housing: an additional $13 billion over ten years from 2028-29 for Build Canada Homes, bringing its total capitalisation to $45 billion. The budget says this puts it on a path to 200,000 new homes over the next decade.
- Federal land: $1.5 billion over four years from 2027-28 for water, wastewater, roads and other infrastructure to prepare federal land for housing.
What it means for landlords
For landlords, Budget 2026's main changes are in mortgage insurance for small and mid-size rental buildings. The government published the parameters in a technical backgrounder, and they take effect February 1, 2027:
- New three- and four-unit homes: insured loans of up to 90% of the projected value for building or buying a newly built triplex or fourplex. There is no owner-occupancy requirement and no maximum property value, and amortisation can run up to 30 years.
- Five to fifty units: private mortgage insurers may insure loans on these properties. The loan can be up to 90% of value for new construction and 85% otherwise, with amortisation of up to 50 years for new construction and 40 years otherwise.
Other measures that touch rental owners:
- Interest deductibility: the tax annex proposes to widen the planned purpose-built rental exception to the interest limitation (EIFEL) rules. It would also cover borrowings used by an affiliated corporation, trust or partnership (Tax measures: Supplementary information, "Interest Deductibility Limits").
- Instalments and filing dates: the threshold for quarterly tax instalments, which can apply to rental income, would rise from $3,000 to $7,500 for taxation years beginning on or after January 1, 2028 (outside Quebec). The T1 filing and balance-due date would move to May 15, starting with the 2027 taxation year.
- Foreign buyers: the ban on foreign purchases of existing residential property would be extended for two years, to January 1, 2029. New residential properties would be exempt (Chapter 3.2).
The tax annex does not include changes to how rental income is reported, to capital cost allowance rates for rental buildings, or to how a gain on selling a rental property is taxed. Chapter 3.2 lists the GST rebate on purpose-built rental as an existing program, and the documents do not change its terms. These were items on our pre-budget watch list.
What it means for tenants
For tenants, Budget 2026's main measure is the renewal of the Canada Housing Benefit for 10 years: $1.7 billion over three years starting in 2028-29, and $3.9 billion in future years. The benefit gives low-income renters direct monthly rental assistance (Chapter 3.2). The budget documents do not include a federal renters' tax credit. The budget lists landlord and tenant rights, including rent control, as provincial and territorial responsibilities. Tenant guides are collected in the Canadian Tenant Resource Center.
The budget also restates the National Heat Pump Rebate announced October 8 (more than $2 billion over eight years, for up to 820,000 households).
What to do now
- Change nothing yet. Tax proposals apply only once enacted, and the mortgage insurance products start February 1, 2027.
- Planning a triplex, fourplex or larger rental? Read the backgrounder's loan-to-value, amortisation and debt-coverage terms before talking to a lender.
- Keep records current. Rental income and expenses still go on the T776; note the proposed May 15 filing date for 2027 returns.
- Follow the legislation. We will update our guides in the Canadian Landlord Resource Center as the measures move through Parliament.
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