Overview
The federal government of Canada has made housing affordability a central policy priority in recent years, implementing a series of measures aimed at increasing supply, reducing speculative demand, and improving affordability for first-time buyers and renters. This summary covers the major federal housing policies in effect in 2026 and their implications for buyers, renters, and investors.
Housing Accelerator Fund
The federal Housing Accelerator Fund, with over $4 billion in committed funding, provides financial incentives to municipalities that agree to implement zoning reforms and streamline development approvals to accelerate housing construction. Eligible municipalities that meet housing growth targets receive funding for infrastructure, affordable housing construction, and community amenities. As of 2026, a significant number of municipalities have signed Housing Accelerator Fund agreements and are implementing the required reforms.
Changes to Mortgage Rules
The federal government has made several adjustments to mortgage rules in recent years aimed at improving accessibility for first-time buyers. The maximum amortization period for insured mortgages was extended to 30 years for first-time buyers of new construction, reducing monthly payment requirements. The FHSA program continues to provide first-time buyers with up to $40,000 in tax-free savings capacity, and the Home Buyers’ Plan withdrawal limit was raised to $60,000 per individual.
Prohibition on Non-Canadians
The Prohibition on the Purchase of Residential Property by Non-Canadians, initially introduced in January 2023, has been extended into 2026. The policy prohibits foreign nationals and foreign commercial enterprises from purchasing residential real estate in Canada, with exemptions for permanent residents, certain work permit holders, and specific other circumstances. The policy’s effectiveness in improving affordability has been debated, but it remains in force.
Affordable Housing Investment
The federal National Housing Strategy continues to fund the construction and maintenance of affordable housing through a combination of direct investment, loan programs, and partnerships with provinces, municipalities, and non-profit housing providers. The strategy has a commitment of over $82 billion over ten years, representing one of Canada’s largest ever investments in housing. Progress in delivering new affordable units has been slower than targeted, reflecting the complexity of housing construction and development.
