Why do we need CMHC?

If you are getting a mortgage and putting less than 20% down on that home purchase you were required to get mortgage insurance. This insurance is provided through two companies, one being CMHC.

Array

If you are getting a mortgage and putting less than 20% down on that home purchase you were required to get mortgage insurance. This insurance is provided through two companies, one being CMHC.

Who is CMHC?

Canada Mortgage and Housing Corporation (CMHC) is Canada’s national housing agency. Established as a government-owned corporation in 1946 to address Canada’s post-war housing shortage, the agency has grown into a major national institution. CMHC is Canada’s premier provider of mortgage loan insurance, mortgage-backed securities, housing policy and programs, and housing research.

On January 1, 1946, the Central Mortgage and Housing Corporation was created (changed to “Canada” Mortgage and Housing Corporation in 1979) to house returning war veterans and to lead the nation’s housing programs.

CMHC’s basic functions were to administer the National Housing Act and the Home Improvement Loans Guarantee Act, and provide discounting facilities for loan and mortgage companies. The capital of the Corporation was set at $25 million (a substantial amount for the times), and a reserve fund of $5 million authorized to be accumulated from profits. This requirement and capital structure are still in effect today.

National Housing Act

The purpose of the Act is to promote the construction of new houses, the repair and modernization of existing houses, and the improvement of housing and living conditions.

Canada Mortgage and Housing Corporation Act

The purpose of the Act is to incorporate the Canada Mortgage and Housing Corporation, Canada’s national housing agency, and provides the objects and powers of the Corporation

Should we be concerned about the sustainability of CMHC?

Lately there has been increasing numbers of announcements of CMHC spending. Some are grants some are loan guarantees to different sources other than home owners. All those premiums paid by home owners being used to build affordable housing is great, but at what cost? Are we at risk that CMHC will not have money to save the banks from a collapse of American proportions?

• Click here to see Patrick’s complete blog ‘Why do we need CMHC’

Just Posted

Avid Penhold climber Catlin Hannah’s death a reminder of the dangers of scrambling

Hannah never returned from his Mount Smuts attempt on Aug. 12.

Children, elderly at risk as smoke from distant fires hangs over parts of B.C.

VANCOUVER — Thick smoke blanketing British Columbia communities far from any flames… Continue reading

Trudeau: no apologies for heckler encounter, pledges to call out ‘hate speech’

OTTAWA — Hate speech and the politics of division are creating a… Continue reading

Rocky Mountain House RCMP charge woman with drug trafficking

Rocky Mountain House RCMP have charged a woman with drug trafficking after… Continue reading

WATCH: Medicine River Wildlife Centre opens new playground

The grand opening of the playground was Saturday morning

Police chiefs want new data-sharing treaty with U.S. as privacy questions linger

OTTAWA — Canada’s police chiefs are pressing the Trudeau government to sign… Continue reading

Pope on sex abuse: “We showed no care for the little ones”

VATICAN CITY — Pope Francis issued a letter to Catholics around the… Continue reading

Ottawa announces $189M to extend employment insurance for seasonal workers

ESCUMINAC, N.B. — Ottawa has announced $189 million for an employment insurance… Continue reading

Trudeau formally announces he’ll run again in next year’s election

MONTREAL — Justin Trudeau will run again in the 2019 federal election.… Continue reading

Smoke from B.C. wildfires prompts air quality advisories across Western Canada

VANCOUVER — More smoky, hazy air is expected to blanket much of… Continue reading

Anti-pipeline protesters released days before weeklong jail sentences end

MAPLE RIDGE, B.C. — Several pipeline protesters were released from a British… Continue reading

All eyes on Andrew Scheer as Conservative convention set for Halifax

OTTAWA — After a week of internal caucus squabbles, Conservative Leader Andrew… Continue reading

Trump says his White House counsel not a ‘RAT’ like Nixon’s

BRIDGEWATER, N.J. — President Donald Trump insisted Sunday that his White House… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month