OTTAWA, March 26, 2020 /CNW/ - As Canada's national housing agency, Canada Mortgage and Housing Corporation (CMHC) plays an important role within the Canadian financial system. In support of the Government of Canada's measures to help stabilize the economy amid the COVID-19 pandemic, we have announced a number of measures to support homeowners, multi-unit borrowers and housing providers experiencing financial difficulty and have implemented measures to strengthen the financial system. To this end, we stand ready to do more, if needed. As a result, the Board of Directors for CMHC is temporarily suspending dividend payments.
"Temporarily suspending the dividend is a prudent measure that allows us to conserve capital to support Canadians and the economic recovery through the crisis should the need arise. As a key stabilizing component of the Canadian financial system, we will be substantially increasing our appetite for risk as we and other institutions absorb the impacts of these events."
At December 31, 2019, our capital position remains strong with approximately $3 billion in excess capital for our mortgage insurance and mortgage funding activities. Temporarily suspending our dividend allows us to conserve our financial strength to take further action, if needed.
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.