Supporting access to rental housing: CMHC results for third quarter 2019

OTTAWA, Nov. 29, 2019 /CNW/ - The number of rental housing units insured by Canada Mortgage and Housing Corporation (CMHC) rose by 35% during the third financial quarter of 2019 compared to the same period in 2018. The results are part of CMHC's quarterly financial report released today, which demonstrates contributions to the stability of housing markets and Canada's financial system, and continued support for Canadians in housing need.

"We've seen increased demand in rental housing, which remains an important housing solution for many Canadians. We have continued to provide support for this option through our commercial activities and National Housing Strategy initiatives," says Lisa Williams, CHMC's Chief Financial Officer. "Our Q3 results also indicate that we are continuing to contribute to the stability of Canada's financial system with the prudent management of our resources."

CMHC facilitates access to rental housing through both funding opportunities and mortgage insurance products to support the construction, purchase and refinancing of rental properties. CMHC also published supplemental reports with additional insights on its assisted housing, mortgage insurance, mortgage funding, and covered bonds activities.

Additional quarterly report highlights for three-month period ending September 30, 2019:

• CMHC provided mortgage insurance for more than 69,000 homes across the country, supporting over 31,000 homebuyers and more than 38,000 rental units.
• CMHC signed bilateral agreements with Nova Scotia and Nunavut under the new Housing Partnership Framework to support the delivery of key National Housing Strategy initiatives.
• CMHC maintained the quality of our portfolio with an overall arrears rate of 0.30%. The typical CMHC-insured borrower had (on average) 7.6% in equity; a credit score of 756; and a home purchase price of $294,689.
• As at 30 September 2019, total insurance-in-force was at $433 billion, while total guarantees-in-force were at $488 billion.

Q3 Highlights	Three months ended 30 September 2019	Nine months ended 30 September 2019
Net income ($M)	383	1,156
Government funding for housing programs ($M)	393	1,550
New securities guaranteed ($B)	43	124
Insured volumes (units): Transactional homeowner	29,477	74,697
Insured volumes (units): Portfolio	4,997 *	23,908 *
Insured volumes (units): Multi-unit residential	38,208	90,640

*Portfolio substitutions were 3,048 units for the three months ended 30 September 2019 and 8,216 units for the nine months ended 30 September 2019

Capital management	As at 30 September 2019
Total Mortgage Insurance capital ($B)	12.2
Mortgage Insurance capital available to minimum capital required (%)	197
Total Mortgage Funding capital available ($B)	2.4
Mortgage Funding capital available to capital required (%)	198

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.
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SOURCE Canada Mortgage and Housing Corporation

Leonard Catling, Media Relations, Canada Mortgage and Housing Corporation, 604-787-1787, [email protected]