OTTAWA, Nov. 28, 2019 /CNW/ - The Board of Directors for Canada Mortgage and Housing Corporation (CMHC) has approved a dividend of $505 million to its shareholder, the Government of Canada. The dividend is payable by December 31, 2019.
We manage our mortgage insurance and mortgage funding activities on a commercial basis. The premiums and fees collected from these activities cover all related expenses while generating a reasonable return for our shareholder, the Government of Canada.
The dividend balances returning excess capital to the Government, while retaining sufficient capital to protect against housing market risks. Our dividend framework is informed by our risk appetite, stress testing and scenarios analysis. Subject to approval by our Board of Directors, we intend to continue to return excess capital to the Government while establishing a dividend that allows us to maintain capital in line with our long-term capital needs.
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.