CMHC released its Q1 2026 numbers: 49,206 new housing starts in Canada, a 9% increase versus Q1 2025. Good news for supply, despite Trump's 50% tariffs weighing on costs. Here's the concrete impact on your down payment in 2026.
1. CMHC Q1 2026 numbers
49,206
Housing starts Q1 2026
+9%
vs Q1 2025
~22%
Quebec share
Growth is driven by urban multiplex (condos, plex 4-12 units) in major cities. Single-family homes stagnate due to land costs and densified zoning constraints.
2. Minimum down payment — CMHC 2026 rules
- 5% on the first $500,000
- 10% on the $500,000 to $1,500,000 portion
- 20% above $1,500,000 (CMHC insurance not available)
Example: new condo at $600,000:
- 5% × $500,000 = $25,000
- 10% × $100,000 = $10,000
- Total down payment: $35,000
3. CMHC insurance premiums 2026
CMHC premiums are identical between new and resale, based solely on down payment percentage:
Down 5-9.99%
4.00%
Down 10-14.99%
3.10%
Down 15-19.99%
2.80%
Down 20%+
0%
Premium is added to borrowed capital and amortized over the mortgage duration.
4. Impact of Trump 50% tariffs
Trump 50% tariffs on imported steel and aluminum (June 2025) raised construction costs by 8 to 12% in Quebec. For a new condo that would have sold for $600,000 pre-tariff, the price now hovers around $660,000.
Effect on your down payment
- Pre-tariff ($600K): minimum down $35,000
- Post-tariff ($660K): minimum down $41,000 (+17%)
- CMHC premium also proportionally higher
5. Strategies for 2026
- Increase down payment to 20% — eliminate CMHC premium (~3% of capital).
- Combine FHSA + HBP + first-time buyer credit — up to $100,000 in tax tools.
- Prefer resale if you want to minimize entry ticket and tariff exposure.
- Choose new projects outside downtown where construction cost pressure is lower.
Calculate your real down payment in 2 minutes
Our calculator integrates CMHC 2026 rules, insurance premium and the effect of Trump tariffs on new projects. Instant answer.
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