CREA's Response to Federal Government's Spring Economic Update
On April 28, 2026, the Honourable François-Philippe Champagne, Minister of Finance, delivered the Spring Economic Update (SEU) providing Canadians with an update on the state of Canada’s economy, the federal government’s fiscal position and progress in delivering on the key priorities it was elected on one year ago, in 2025.
The update reflects progress on recommendations REALTORS® have been advancing for years—a clear signal the Government of Canada is now hearing what Canadians have been saying: they want to own homes, and the missing middle is how we make that dream a reality. The SEU contains several housing-related measures the Canadian Real Estate Association (CREA) has previously advocated for, including:
- improved mortgage insurance flexibility to unlock financing for missing middle homes;
- a modernized regulatory pathway for innovative and factory-built housing;
improved housing data collection and sharing; and - a skilled trades strategy to build the workforce Canada's housing ambitions require.
The fundamentals for housing are moving in the right direction, and CREA remains cautiously optimistic as we welcome this new momentum.
However, there’s still much work to do, particularly on attainable ownership financing. CREA looks forward to the consultations ahead as the government looks to pass and implement the proposals below.
New proposed measures specifically related to housing supply and affordability include:
Amendments to mortgage insurance rules to improve flexibility and financing around missing middle housing, including an upcoming 30-day consultation on both proposals:
- Permitting private mortgage insurers to offer multi-unit mortgage loan insurance for five-to-eight-unit residential properties to promote competition and offer lenders more choice.
- Increased flexibility 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.
A new investment of $41.9 million over five years to modernize the regulatory environment for innovative homebuilding, strengthen innovation capacity, and improve housing data collection and sharing, including by:
- Modernizing the regulatory environment via regulatory streamlining, including updates to the National Model Codes in collaboration with provinces and territories, eliminating redundant inspections, and improving consistency in how building code requirements are interpreted across jurisdictions.
- Improving productivity and reducing costs by mobilizing private research and development to support the adoption of modern technologies and practices at construction firms, including by accelerating the review and approval processes, allowing for more flexible building (i.e. engineered wood), and better assessing the costs and impacts on housing affordability.
- Modernizing how housing data is collected, tracked, monitored and shared across Canada, to better evaluate and respond to market conditions.
Accelerating $7 billion in low-cost loans under the Apartment Construction Loan Program to speed up the construction of 16,500 rental homes.
An upcoming consultation on “possible additional financing measures to support the continued supply of more owner-occupied homes” in advance of the fall budget.
Extending the grace period for money withdrawn under the Home Buyers’ Plan (HBP) from two years to five years for withdrawals made between January 1, 2026, and December 31, 2028, aligning with the extension previously made for those withdrawing between 2022 and 2025.
A red-seal trades strategy to provide a pipeline of domestic trades workers needed for a robust building industry—and to help build the infrastructure and housing supply needed now and in the future.
Looking ahead to the fall budget, CREA remains committed to advocating for further structural financing reforms and modern tools to help restore the pathway to attainable homeownership for more Canadians.
A key piece of the puzzle for the Government of Canada to address moving forward will be outlining clearly defined, outcome-driven mandates for both Build Canada Homes (BCH) and Canada Mortgage and Housing Corporation (CMHC). While the SEU helpfully illustrates where each entity sits and operates along the housing continuum—mapping BCH to affordable and community housing, and CMHC to market functions—clarity alone is not enough.
A deliberate, collaborative framework between the two entities is still needed. One that ensures the missing middle of that continuum—attainable ownership housing—doesn't fall through the cracks.
With the existing National Housing Strategy sunsetting in 2027, there’s an immediate opportunity to align jurisdictions on a renewed national housing framework. A national crisis necessitates a national solution, and CREA is calling on the Government of Canada to work with provinces and territories on a National Housing Strategy 2.0 that prioritizes housing choice across the full continuum, establishes clearly defined, outcome-driven mandates for both BCH and CMHC (including structural collaboration between the two), and makes an explicit commitment to restoring an attainable pathway to homeownership for middle-class Canadians.
CREA thanks our board and association Political Action Committee (PAC) representatives for delivering a clear message during PAC at Home this spring—that true housing choice includes attainable homeownership—and for their ongoing collaboration and support via on-the-ground advocacy for missing middle housing stock.
Together, we are making progress.
