Canada enters 2026 with a housing landscape that looks very different from the one earlier in the decade. Rising inventory, regional divergence, and a wave of higher-cost renewals are shaping how buyers, sellers, and investors prepare for the year ahead.

Inventory Is Rising in Key Provinces

The most significant shift heading into 2026 is the increase in resale listings. Ontario and British Columbia now show their highest inventory levels in more than a decade. Homes are spending more time on the market and buyers have more negotiating room.
This does not mean Canada has excess housing. It signals a more balanced environment that creates opportunities for households who struggled during the peak bidding years.

Construction Patterns Are Rebalancing

Developers are reacting to the new conditions. Some overheated markets are seeing fewer new starts, while other regions are experiencing more purpose-built rental and mid-density projects.
These changes affect how quickly new supply becomes available, how affordability evolves, and how regional markets absorb the units already underway.

Renewals Become a Major Financial Pressure Point

Many borrowers who secured very low rates earlier in the decade now face higher payments at renewal. The size of the reset varies by product type, household income, and region.
Some owners may decide to list properties they can no longer comfortably carry. Others will manage the increase by extending amortizations or choosing a different mortgage structure.

Investors Are Repositioning for Stability

Investor behaviour is also shifting. Some are pausing acquisitions in high-priced metropolitan areas and focusing on secondary markets with stronger rent fundamentals and more predictable long-term demand.
Regions that attract young families, skilled workers, and new arrivals continue to show the most resilient potential. Population stability supports both rental performance and resale activity.

Affordability Depends on Local Fundamentals

Affordability is improving in some parts of the country but remains challenging in others. Wage growth, easing inflation, and modest rate relief help, but conditions vary from region to region.
The factors shaping price stability in Halifax look different from those shaping Calgary, Toronto, or Vancouver. Understanding local fundamentals matters more than it has at any point in the past five years.

A More Segmented Market Emerges

Canada is not heading toward a single national outcome in 2026. It is moving toward a more segmented environment where performance depends on regional supply, migration patterns, labour conditions, and renewal exposure.
Those who understand these underlying forces will be better positioned to navigate the year ahead.

Written by the team at BBM

You’ve got two choices:

• Save for years to hit 20% down.
• Buy with 5% down and get in the market now.

Both come with baggage. One delays your wealth. The other costs more to build it.

If you’re staring down today’s home prices thinking “I’ll never save enough”—you’re not alone. But before you jump into a 5% down mortgage, understand this:

Getting in early isn’t free. It just feels like it.

Let’s break down exactly how low-down payment mortgages work, where they help, and where they bite you.

⚙️ The Mechanics: How 5% Down Works in Canada

Here’s what CMHC and the other insurers allow:

• Under $500,000? Minimum 5% down.
• $500K to $999K? 5% on the first $500K + 10% on the rest.
• Up to $1.5 million? As of December 15, 2024, you can now qualify for an insured mortgage—with the same down payment structure: 5% on the first $500K and 10% on the portion between $500K and $1.5 million.

This new $1.5M cap opens the door for more buyers in high-cost markets to enter the game with a smaller upfront investment.

And if you put down less than 20%, you’re taking on default insurance—a premium tacked onto your mortgage. That cost? Between 2.8% and 4% of the loan, depending on your down payment. And yes, it’s usually rolled in, which means you pay interest on the insurance too.

✅ What You Gain by Putting Down Less

1. Faster Market Access Waiting to save 20% while home prices climb is like trying to fill a leaky bucket. A 5% down payment gets you in the game now, not 3 years from now when prices are higher and you’re still behind.

2. Insured Mortgage = Lower Rates Lenders love insured mortgages. The risk’s off their books. That means they’ll often give you better interest rates than someone with 20% down and no insurance.

3. Optionality Buying with 5% down doesn’t lock up your liquidity. You keep cash in the bank. And if life happens—job change, relationship shift, whatever—you’re not deep underwater.

❌ What You Sacrifice (and It’s Not Small)

1. Higher Monthly Payments You’re borrowing more. And adding insurance to your loan. That’s a double whammy. The monthly hit is higher—no way around it.

2. More Interest Over Time Bigger mortgage = more interest. Even if your rate is sharper, the total interest paid is higher because your loan balance is bloated.

3. Slower Equity Buildup In the first few years, you’re barely touching principal. Most of your payment feeds the bank. Add that to the higher balance and you’re building wealth at a crawl.

4. Less Refinance Flexibility Insured mortgages restrict your options. Want to pull equity out later? Refinance with a different lender? Good luck. Your flexibility is capped unless you re-qualify and re-insure (if even allowed).

📈 The Power of Leverage: Turning 5% into 20%

With 5% down, you’re getting 20x leverage on your money. That means for every 1% the property value increases, you get a 20% return on your initial investment.

Let’s break it down:

• Purchase Price: $300,000
• Down Payment (5%): $15,000
• If the property value rises 1% to $303,000, that’s a $3,000 gain.
• Return on your $15,000 down payment? 20% ($3,000 ÷ $15,000)

This is one of the reasons homeownership often outpaces renting in the long run. Even modest price increases can significantly boost your equity when you’re highly leveraged.

Think about it: If you had to save 100% of the cash to buy the property, do you realistically believe you would ever be able to own a home? Depending on market conditions, the longer you wait, the more ground you could lose.

🛡️ Default Insurance: Your Hidden Safety Net

Most people think mortgage default insurance only protects the lender. But it can also protect you.

Some insurers offer support programs to help homeowners through temporary financial troubles—like a job loss, illness, divorce, or natural disaster. These programs typically work by:

• Offering payment deferrals during a tough period
• Extending amortization periods to lower payments
• Setting up shared payment plans (where the insurer covers part of the mortgage payment)
• Adding missed payments to the loan balance (capitalizing arrears)
• Restructuring mortgage terms to fit a new financial reality

For example, Sagen’s Homeowner Assistance Program (HOAP) has helped over 63,000 Canadian families avoid losing their homes, with a success rate of over 90% .

Knowing that your default insurance can act as a safety net if unexpected hardships arise can provide extra peace of mind.

🎯 The Real Question

Do you want in now—knowing the trade-offs—or do you want to wait, save more, and potentially miss out?

There’s no right answer.

If your income is stable, you’re staying put for 5+ years, and you’ve stress-tested your budget? 5% down might be a smart move.

But if you’re stretching, or banking on appreciation to bail you out? Be careful. A hot market can cool. And higher payments don’t feel so hot when rates jump or life gets messy.

Final Take

Buying with 5% down is like using a credit card to grab a seat at the wealth table. You’ll pay for it—but you’ll own something.

It’s not free. It’s not cheap. But it might be smarter than waiting—depending on your market, your goals, and your risk tolerance.

So don’t ask, “Can I buy with 5%?” Ask: “What will it cost me if I don’t?”

Then run the numbers. Talk to a real mortgage strategist. And make the move that sets you up, not sets you back.

Written by the team at BBM

For many Canadians, income no longer comes from a single source. Between side hustles, rental suites, investments, and government benefits, household income today is more diverse than ever, and that can actually strengthen your mortgage application.

Most people assume lenders only care about their job salary. In reality, many lenders consider other steady and verifiable income sources when determining how much you qualify for. The key is in how your income is documented and presented, which is where an experienced broker becomes essential.

Why It Matters

Expanding your income story can increase your qualifying amount or help you secure better terms. Lenders need proof that your income is consistent and reliable. This could include:

• Two years of tax returns for freelance or seasonal work
• CRA notices confirming Canada Child Benefit or CPP income
• Lease agreements and deposit history for a suite or rental property

The stronger your documentation, the better your chances of having every dollar count toward your approval.

Income Sources That May Qualify

Here are some of the most common income types lenders may include in their assessment:

• Rental or Suite Income. Many lenders allow 50 to 100 percent of rental income if supported by a lease and market rent letter.
• Government Benefits. CPP, OAS, and the Canada Child Benefit often qualify if supported by CRA documentation.
• Pension and Disability Payments. Steady payments supported by T-slips or bank records are often accepted.
• Investment Income. Dividends or interest income can qualify if they are consistent and declared on your tax return.
• Side Hustle or Freelance Work. Qualifies when supported by at least two years of verifiable income history.

Documentation Is Key

Mortgage approval depends on proof of income. A clear paper trail of tax returns, benefit statements, or lease agreements shows lenders that your income is both real and stable. Every piece of documentation strengthens your application and helps lenders see your full financial picture.

The Broker Advantage

Not all lenders view income the same way. Some will count all rental income, while others use only a portion. Certain lenders include child benefits or pension income, while others do not. A knowledgeable broker understands these differences and knows which lenders are most flexible. By matching your income mix to the right policy, they help you qualify with confidence and avoid unnecessary setbacks.

The Bottom Line

If you earn money outside your main job, do not overlook its potential. With proper documentation and expert guidance, those extra earnings could turn into buying power that helps you secure your next home.

Written by the team at BB