On November 5, the federal government tabled Budget 2026, Masters of Our Destiny. It promises Canadians “a boost today and a bridge to tomorrow” on the cost of living. At VCF, we read every budget the same way: does it help people afford a home, stay housed and make ends meet? 

This year, VCF also had three specific asks: 

1. Federal help for community housing providers to get projects ready to build. 

2. Federal investment to grow proven rent bank models across Canada. 

3. The renewal of Reaching Home, the federal program that funds community-led homelessness prevention. 

Here’s our honest read of what the budget means for the programs we run and the people they serve. 

Building homes people can afford: Vancity Affordable Community Housing Program 

Non-market housing makes up only about 4% of Canada’s homes. Budget 2026 aims to triple non-market housing starts to 24,000 a year over the next decade (p. 201). 

To get there, Build Canada Homes will receive an additional $13 billion over the next ten years. Its total capitalization will reach $45 billion, with a target of 200,000 homes built. At least 10% of the new funding is set aside for Indigenous housing (p. 201). Build Canada Homes also now includes the Canada Rental Protection Fund, which buys existing rental buildings so they stay affordable (p. 196). Another $1.5 billion over four years will prepare federal land for housing (p. 202). 

This lines up closely with the Vancity Affordable Community Housing Program. Together with Vancity credit union, the program has helped enable close to 13,000 affordable rental homes across B.C. We’re especially encouraged to see the budget name philanthropic investment as part of its plan for non-market housing (p. 201). 

But there’s a gap. Build Canada Homes is designed to fund projects once they’re ready to build. Non-profit, co-op and Indigenous housing providers usually need three to five years of early-stage work (and the money to pay for it) before they reach that point. 

Last year we received 114 funding requests, and our pre-development funds were fully committed by August. Budget 2026 doesn’t include specific mention of the dedicated pre-development fund we proposed, but we’ll keep making the case that some of this new spending needs to be directed there. Early-stage capital is what turns these federal commitments into homes faster. 

The budget also helps renters and first-time home buyers in the wider market: 

• Keeping existing homes for Canadians. The ban on foreign buyers of existing homes is extended to January 1, 2029 (p. 203). However, the ban is being lifted for new construction, and that’s something to keep an eye on to see if it raises home prices. 

• More “missing middle” homes. Starting February 1, 2027, new mortgage insurance rules will make it easier to finance three- and four-unit homes and rental buildings of up to 50 units (p. 203). 

• 30-year mortgages for first-time buyers. The price limit for insured mortgages will rise from $1 million to $1.5 million. Thirty-year amortizations will be allowed when at least one borrower is a first-time buyer or the home is newly built (p. 208). 

Keeping people housed: BC Rent Bank 

Budget 2026 commits to ending homelessness within 10 years with $11.2 billion over four years (p. 198). A new Integrated Supports Fund ($1.8 billion over four years) will combine housing with health, mental health and addictions supports, and it is designed to bring in philanthropic capital.  

Another $3.6 billion will go to supportive and transitional housing, and $2 billion will build community mental health and addictions facilities (p. 198). 

Rent banks are not named in the budget, but that doesn’t mean some of this new spending can’t be directed towards them. BC Rent Bank has prevented homelessness for more than 15,000 British Columbians. Nearly 80% of recipients are still housed a year later, and the program returns about $7 in avoided public costs for every $1 invested. 

The cheapest way to end homelessness is to stop it before it starts. Ottawa will rework its housing agreements with the provinces before the 2027 Spring Economic Update. Those agreements will focus on ending homelessness and protecting existing non-market homes (p. 199). We’ll be working with both levels of government to make sure rent banks are part of that conversation. 

Community-led homelessness prevention: Reaching Home 

Reaching Home is renewed for another 10 years with $2.1 billion over three years beginning in 2028–29. Continued funding will depend on rigorous reporting including real-time data, and details are expected early in the new year (p. 199). 

This is a win. Renewing Reaching Home was one of our asks, and as an organization that helps deliver Reaching Home in partnership with Lu’ma Native Housing Society, we welcome the long-term certainty this gives community partners and the people they serve. 

The Canada Housing Benefit is also renewed for 10 years, giving low-income renters direct monthly help with rent (p. 199). We’ll be watching to see what the new reporting requirements ask of community partners. 

Making ends meet: Living Wage BC 

Living Wage BC calculates what families actually need to make in order to cover basic costs. Several measures in this budget help close the gap between what people earn and what life costs: 

• Low-wage workers. The new Build Canada Workers Benefit lowers the minimum earnings needed to qualify from $3,000 to $500. It raises maximum payments to $1,859 for individuals and $3,143 for families, reaching 180,000 new recipients. But there’s a trade-off: advance payments will drop by half in 2027 and end in 2028 (p. 191). Workers who counted on that money during the year will now have to wait until tax time. 

• Groceries and essentials. A one-time 50% top-up to the Canada Groceries and Essentials Benefit brings total support this year to up to $2,570 for a family of four (p. 190). 

• Caregivers. The Canada Caregiver Credit becomes fully refundable, worth up to $1,260 a year. That reaches 180,000 caregivers who currently get nothing (p. 192). 

• Energy bills. A heat pump rebate will help up to 820,000 households cut heating and cooling costs, with more support for lower-income households (p. 194). Retrofit support also includes rental and multi-unit buildings, so renters aren’t left out (pp. 42, 194). 

These measures make a real difference. But one-time payments aren’t the same as wages that keep up with the cost of living. Lasting affordability depends on both. 

The smaller things that add up 

Beyond the big-ticket items, the budget includes a long list of smaller measures. Each one is modest, but together they can make day-to-day life a bit more affordable: 

• Free museums for young people. Admission to Canada’s national museums will be free year-round for children and youth under 25, permanently (p. 229). 

• Canada Strong Pass is back. The pass is renewed for summer 2027, with expanded discounted access to Indigenous-led museums and cultural centres (p. 228). 

• Cheaper phone plans. New rules end fees to activate, change or cancel a phone or internet plan, which the government estimates will save Canadians about $100 million a year (p. 3). 

• Fairer banking. Banks will have to give customers a clear annual statement of the fees they paid, and credit card payments above the minimum will go to the highest-interest balance first (p. 210). 

• Safer payday loans. Payday loans will have a minimum repayment period of 42 days, paid in instalments, and lenders will no longer be allowed to charge for credit insurance on them (p. 210). 

• Support for food banks. The Local Food Infrastructure Fund, which helps food banks and community groups buy food and invest in kitchens, storage and transportation, is renewed with $124 million (p. 209). 

• Free menstrual products. The Menstrual Equity Fund receives $70 million over two years to continue providing free menstrual products (p. 245). 

What’s next 

Budget 2026 is ambitious about building homes and ending homelessness. Whether it makes life more affordable will depend on two things. First, whether the money reaches community-led projects quickly. Second, whether keeping people housed gets the same attention as building new homes. 

VCF is ready to partner with Ottawa on both. We know how to get community housing projects ready to build, and how to keep renters in the homes they already have.