OTTAWA, Nov. 29, 2018 /CNW/ - Canada Mortgage and Housing Corporation (CMHC) today released its third quarter financial report demonstrating its contributions to the stability of housing markets and the financial system while providing support for Canadians in housing need.
CMHC also published reports on its Assisted Housing, Mortgage Insurance, Securitization and Covered Bonds activities, providing additional insights into each.
Facilitating access to housing while contributing to financial stability
CMHC helps Canadians gain access to suitable housing they can afford. Through the first nine months of 2018 CMHC:
- Delivered more than $1.9 billion to create and support much-needed housing units for low- and middle-income Canadians, including on-reserve;
- Provided mortgage insurance for 171,173 homes across the country, supporting over 94,000 homebuyers and more than 77,000 rental units;
- Provided more than $118 billion in guarantees through its securitization programs, benefiting homebuyers and the entire Canadian housing industry by providing lenders with an affordable and reliable source of mortgage financing
CMHC also continues to implement National Housing Strategy (NHS) initiatives and, during the third quarter, launched both the Collaborative Housing Research Network and the Federal Lands Initiative. The research network will build research capacity in the housing and academic sectors while the Federal Lands Initiative will make surplus federal lands and buildings available for affordable housing.
A lens into Canadian homebuyers
As Canada's largest mortgage insurer, CMHC provides valuable insights into current Canadian homebuyers.
Through the first three quarters of 2018, the average CMHC-insured homebuyer purchased their home for nearly $276, 000, making a down payment of 7.7% while having an average credit score of 754. Despite the highest average purchase prices, homebuyers in British Columbia and Ontario also made the highest average down payments at 8.8% and 8.7% respectively.
Nearly all CMHC-insured homebuyers continue to choose a 25 year amortization however an increasing percentage of homebuyers are opting for a variable rate mortgage (31%) over a fixed alternative.
CMHC-insured homebuyers continue to demonstrate a strong ability to repay their mortgages which is reflected in the low overall arrears rate of 0.29%.
Delivering results for Canadians
Through the first nine months of 2018, CMHC generated revenues of nearly $3.8 billion and a net income of nearly $1.1 billion. On the strength of its performance, CMHC has now declared $4.175 billion in dividends, payable to its shareholder, the Government of Canada so far this year.
As at September 30, 2018, CMHC's total insurance-in-force was $453 billion while its total guarantees-in-force were $484 billion.
As a responsible risk manager, CMHC holds capital for these activities in line with its risk profile and with regulatory capital requirements. For its mortgage insurance portfolio, CMHC had $12.8 billion in capital available (175% of the minimum regulatory capital required) with an additional $2.5 billion in capital available (149% of the minimum required) for its securitization operations.
"Through the first nine months of 2018, we have continued to deliver results for Canadians, contributing to market stability and implementing initiatives under the National Housing Strategy while helping people from all across the country meet their housing needs." – Lisa Williams, Chief Financial Officer
As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry.
SOURCE Canada Mortgage and Housing Corporation
For further information: Audrey-Anne Coulombe, Media Relations, 613-748-2573, [email protected]