If you’ve been dreaming of owning your first home but felt completely shut out of the market over the past few years… you’re not alone. Between soaring prices, stress-test hurdles, and high borrowing costs, 2023–2025 were some of the toughest years for first-time homebuyers in Canada.
But now, as we head into 2026, things are shifting, and finally in a way that might give new buyers a better shot.
Let’s break down what’s changing, what it means for you, and whether 2026 might actually be the year you get the keys to your first home.
Mortgage Rates Are Finally Trending Down
This is the most significant and promising change.
After years of painful rate hikes, 2025 brought the early signs of relief, and experts expect more cuts in 2026. Lower rates mean:
- Lower monthly mortgage payments
- Higher approval amounts
- More flexibility with fixed and variable options
- A better chance to pass the stress test
For first-time buyers who couldn’t qualify before, even a small rate drop can make the math more realistic.
Slower Price Growth = Breathing Room
While home prices aren’t “cheap,” they’re no longer skyrocketing the way they did during the pandemic years.
Most forecasts suggest:
- Moderate, steady price growth, not explosive jumps
- More inventory, meaning more choice
- Less pressure on bidding wars
In many markets, buyers will finally have time to think, not throw in offers within hours.
The Stress Test May Get Friendlier
Talks around modernizing the mortgage stress test have been growing, especially as market conditions shift.
Even a small adjustment could help first-time buyers qualify more easily without compromising safety. Nothing is confirmed yet, but this is one of the key factors to watch in 2026.
More Support for First-Time Buyers
Governments know the affordability crisis isn’t going away, and 2026 is expected to bring:
- New or improved buyer incentive programs
- Adjustments to tax credits
- More support aimed at younger buyers and newcomers
- Possible expansions to down payment assistance
These programs don’t solve everything, but they can make a meaningful difference for someone trying to get into the market sooner.
Rent Is More Expensive Than Ever
With rent hitting record highs across major cities, many first-time buyers are doing the math and realising:
“My rent payment is almost the same as a mortgage payment.”
As rates ease and mortgage approvals improve, more renters may find that buying in 2026 is actually less costly long-term than renewing expensive leases.
So… Will 2026 Actually Be Easier?
Short answer: Yes, it looks a lot better than the last few years.
Long answer: It depends on your situation, but here’s what first-time buyers can expect:
Easier
✔ Lower rates
✔ More programs + support
✔ Less competition
✔ A more balanced market
✔ More negotiation power
Still challenging
– High home prices in major cities
– Stress test requirements (unless revised)
– Saving for a down payment
– Income verification hurdles for self-employed buyers
But compared to 2023–2025? 2026 is shaping up to be the best opportunity first-time buyers have seen in years.
How Cannect Can Help You Buy Your First Home in 2026
Buying your first home is overwhelming, but it doesn’t have to be. Cannect helps first-time buyers by offering:
- The lowest mortgage rates available
- Faster approvals, often within 24 hours
- Guidance from experts who aren’t paid commission
- Options banks don’t offer
- Creative solutions for self-employed or thin-credit borrowers
Whether you want to run the numbers, check your approval amount, or explore rates, our team can help you understand your options clearly, without pressure.
Ready to See if 2026 Could Be Your Year?
Getting started is easier than you think.
Book a free consultation with a Cannect mortgage expert today.
You’ll get personalized advice, real numbers, and a clear idea of the steps to get you closer to your first home.
Watch our Make Money Count videos to gain more insights.