Tag Archives: Insurance Cap

CMHC Confirms Housing Market Strength

Canada Mortgage and Housing Corporation (CMHC) dropped their provisions for claims by $19 million dollars during the third quarter citing lower expectations for bad loans.  Loan loss provisions which now stand at $895 million are sufficient to withstand a catastrophic market downturn. According to Brian Naish, CMHC’s CFO, “We have seen improvement in the economic indicators that underlie all of that, so for example, unemployment has improved and home price … Read More

Posted in Blog, Canadian Housing Market, Government Policy | Tagged , , , , , , | Leave a comment

Government Not Budging on Insurance Cap

As CMHC approaches its $600 Billion cap on insured mortgages, industry observers have been watching Ottawa closely.  In previous situations where the National Mortgage insurer has approached its cap, the ministry of finance has consistently raised the limit to keep up with the growing economy.  The difference today is the government’s focus on reducing consumer debt.  Late last week Jim Flaherty suggested that this time they would hold firm forcing … Read More

Posted in Blog, Canadian Housing Market, Government Policy | Tagged , , | Leave a comment