Consultation on Financial Tools for Citizen-Led Homebuilding and for Infill Housing
Current status: Closed
In the Spring Economic Update 2026, the government announced its intention to amend mortgage insurance rules to help lower financing costs to build residential properties with up to eight units.
This consultation process provided an opportunity for all interested Canadians and stakeholders to submit feedback on these proposed changes. The consultation ran from June 2, 2026, to July 2, 2026. Thank you to everyone who participated.
Key questions for consideration
This consultation sought feedback on the government’s intention to:
- Amend mortgage insurance rules to permit private mortgage insurers to offer multi-unit mortgage loan insurance on five to eight-unit residential properties to promote competition and offer lenders more choice.
- Amend mortgage insurance rules to increase flexibilities for mortgage insurers to offer products to borrowers building new three and four-unit housing, helping unlock financing for “missing middle” homes such as triplexes and fourplexes—an important step toward increasing housing supply and addressing Canada’s housing shortage.
What’s next?
The Department of Finance Canada will review input received from this consultation, to inform changes which would be implemented through technical amendments to the Eligible Mortgage Loan Regulations and the Insurable Housing Loan Regulations.
While this formal consultation has now concluded, Canadians are welcome to share their ideas and comments with the Department of Finance Canada at any time.