Nov 10, 2026 7:33 PM - Connect Newsroom - Ramandeep Kaur
Canada’s major banks and real estate developers are urging the federal government to ease mortgage rules and introduce down payment assistance programs for young, first-time homebuyers purchasing newly built homes.
The group includes major financial institutions such as the Royal Bank of Canada (RBC), BMO, TD, CIBC and Scotiabank, along with 10 major homebuilders, including Minto and Brookfield.
They are recommending that the government make the mortgage stress test less restrictive and lower down payment requirements for young first-time buyers.
The group says the ongoing slowdown in Canada's real estate market, particularly the sharp decline in pre-construction condominium sales, is severely affecting new housing construction. It believes these measures are needed to help revive the housing sector.
To further reduce the financial burden on homebuyers, the group has also proposed allowing homeowners to deduct mortgage interest payments from their taxable income.

