Canada Mortgage and Housing Corporation (CMHC)
The Canada Mortgage and Housing Corporation (or CMHC for short) is Canada’s first countrywide housing agency. They began operation over 60 years ago. Their aim is to provide housing solutions and housing research. They also hold Canada’s top spot in the provision of mortgage insurance and mortgage-backed securities.
A government-owned corporation, the CMHC began back in 1946. Their creation was out of demand for post-war housing. Six decades later, they are the premier nation housing agency. They formulate housing policies, work to expand housing operations, and assist Canadians that can’t afford housing in the private market. The aim of the CMHC is to improve housing standards and offer a beneficial policy to the Canadian housing market.
The CMHC manages just less than $2 billion annually. These are federal funds in support of around 625,000 Canadian households. The agency also aims to use these funds to increase affordable housing. They also want to raise housing standards across Canada, including residents of First Nation reserves.
The CMHC Reports Monthly on the Canadian Housing Market
Each month, the CMHC issues housing reports, provides analysis, trends, and statistical data that reflects the current Canadian housing market. They also issue an annual report of their own performance, with results and objectives as well.
The CMHC is also Canada’s leading provider in mortgage loan insurance. This enables Canadians that can’t put 20 percent down to still qualify for financing they need for a home. That insurance also allows them to qualify for revenue or commercial property if they meet other requirements.
Mortgage loan insurance is what gives lenders protection if the borrower defaults on their loan. This insurance also means that lenders can provide financing without having to charge borrowers with limited down payments and higher interest rates. They are the lone issuer in Canada for insurance on loans for retirement homes, nursing homes, and large scale rental properties.
About the Canadian Mortgage and Housing Corporation
CMHC has the aim of extending its housing reach throughout all of Canada. This includes First Nations communities as well. The CMHC also tries to encourage energy-efficient housing and/or renovations while providing CMHC insurance products and rebates. These rebates are on insurance premiums can be met based on energy-efficiency criteria.
In the years to come, the CMHC hopes to increase environmentally stable and affordable housing solutions. They also hope to support financially sustainable housing for Canadians to improve the quality of living standards and provide employment opportunities and economic growth.