The Mark Carney government’s second federal budget mixes large social-housing commitments with targeted changes intended to make it easier to finance, approve, and purchase new market housing. Budget 2026 contains several significant housing measures, including a ten-year target to end homelessness and substantial funding for supportive and transitional housing.

Here’s a rundown of major budget initiatives affecting housing in BC and across the country.

Foreign Buyer Ban Updates

Perhaps the biggest shift for market housing is Ottawa’s decision to extend the Foreign Buyer Ban on existing homes to January 1, 2029, while exempting new residential properties. The approach draws on the so-called Australia model, which directs foreign investment toward new dwellings that add supply while generally restricting purchases of established homes.

The Canadian Real Estate Association and the BC Real Estate Association have advocated for this specific revision to the ban. Rather than directing investment into a fixed stock of existing homes, the exemption for new builds aims to direct additional capital and buyers only to pre-construction projects.

In BC, however, the provincial additional property transfer tax for foreign buyers remains in place. So, unless BC adjusts its rules, the federal exemption may have limited practical effect in the province.

Mortgage Rules

One potentially underappreciated proposal would raise the price limit for optional mortgage insurance from $1 million to $1.5 million. It would also permit 30-year amortizations when at least one borrower is a first-time buyer or the home is newly built.

By improving financing options for new construction, the proposal could give buyers another reason to choose a new home while helping projects proceed in challenging market conditions. Longer amortizations can reduce monthly payments, although buyers may pay more interest over the life of the mortgage.

Missing Middle and More

The budget also targets the “missing middle.” Beginning February 1, 2027, new mortgage-insurance flexibilities would support three- and four-unit homes, while private insurers would be permitted to insure residential properties containing between five and 50 units. These changes could help smaller multi-unit projects secure financing and add more diverse ownership and rental options.

The budget also proposes $100 million over three years to help municipalities modernize permitting and streamline housing approvals, including e-permitting and artificial intelligence. Other investments are intended to improve housing data, establish common standards for modern construction methods, and support more timely updates to the National Model Codes.

Anti-Money Laundering

Finally, proposed changes to Canada’s anti-money-laundering framework could affect real estate compliance. Expanded information sharing, examination powers, and access to beneficial-ownership information may mean stronger scrutiny and evolving obligations for regulated sectors.

The overall direction is encouraging, with the potential to improve financing, modernize approvals and direct investment toward adding homes. The real test will be whether these proposals are implemented quickly and coordinated with provincial policies so they produce measurable new supply in BC.

To subscribe to receive BCREA publications such as this one, or to update your email address or current subscriptions, click here.