OTTAWA, March 16, 2020 /CNW/ - The Government of Canada, through Canada Mortgage and Housing Corporation (CMHC), is taking immediate, significant and effective action to support Canadian individuals and businesses facing financial hardship as a result of the global COVID-19 virus pandemic.
Today, as a further proactive and coordinated measure to bolster the financial system and the Canadian economy, the government is launching a revised Insured Mortgage Purchase Program (IMPP). Under this program, the government will purchase up to $50 billion of insured mortgage pools through CMHC. This action will provide stable funding to banks and mortgage lenders in order to ensure continued lending to Canadian consumers and businesses. Details of the terms of the purchase operations will be provided to lenders later this week.
As insured mortgage pools in Canada already carry Government of Canada backing, there is no additional risk to taxpayers. These purchased insured mortgage pools will earn a rate of return for the government that is above its own cost of borrowing. The IMPP enhances the already substantial set of measures announced on March 13 by the Government of Canada to support the economy and the financial sector.
The Bank of Canada has also announced it will adjust its market liquidity operations to maintain market functioning and credit availability during the current period of uncertainty in which conditions are evolving rapidly.
CMHC stands ready to further support liquidity and the stability of the financial markets through its mortgage funding programs as necessary.
Quote: These events remind us all how crucial it is to have a safe and affordable place to live. CMHC exists in part to buffer the effects of events such as the COVID-19 virus pandemic, which affect the health and stability of Canada's financial system. This is what we do. We are part of a federal team that is working hard together to ease the impacts on Canadians.
Evan Siddall President and CEO
Associated links: 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. For more information, follow us on Twitter, YouTube, LinkedIn, Instagram and Facebook.
SOURCE Canada Mortgage and Housing Corporation
For further information: Leonard Catling, Canada Mortgage and Housing Corporation, Media Relations, 604-737-4029, [email protected]