Mortgage Loan Insurance
Supporting Canada’s Housing Finance System
CMHC’s mortgage loan insurance products facilitate access to a range of housing options for Canadians and promote and contribute to the stability of the financial system. Our mortgage insurance business operates on a commercial basis, at no cost to taxpayers. CMHC’s commercial operations contribute to improving the Government of Canada’s fiscal position through its net income and income taxes paid.
Mortgage Loan Insurance
Mortgage loan insurance is mandatory for federally regulated lenders in Canada when the buyer of a home has less than a 20 per cent down payment. This insurance protects the mortgage lender against loss if a borrower defaults, and allows qualified borrowers to access homeownership at interest rates comparable to those offered to buyers with larger down payments.
As a public mortgage insurer, CMHC has a mandate to provide service in all parts of the country and for a range of housing forms. A significant portion of CMHC’s mortgage loan insurance business is in markets or for housing options that are not served or less served by private mortgage insurers. In addition to being the primary insurer for housing in small and rural communities, CMHC is the only insurer of mortgages for multi-unit residential properties, including large rental buildings, student housing and nursing and retirement homes. Our exclusive support for these forms of housing helps ensure that Canadians have access to a range of housing options.
CMHC’s prudent underwriting standards and market presence serve to minimize risk to taxpayers and contribute to stable and efficient housing markets across the country. Our commitment to prudent risk management is reflected in the strength of our insured loan portfolio. CMHC follows capital and other risk management practices set out by the Office of the Superintendent of Financial Institutions.
CMHC provides mortgage professionals with support, expertise, and the tools they need to effectively meet the needs of their clients.
Advancing Knowledge About Mortgage Loan Insurance
To further support the stability of Canada’s financial system, CMHC works closely with stakeholders to promote professional development in the mortgage industry, prevent mortgage fraud and increase Canadians’ mortgage literacy to help them make informed housing decisions.
CMHC is Canada's provider of mortgage loan insurance for the construction, purchase and refinancing of multi unit residential properties, including rental buildings, licensed care facilities and retirement homes.
Whether it be renting, buying or renovating a home, CMHC is committed to supporting Canadians throughout their decision making process.
CMHC offers a number of online resources and tools for mortgage professionals to help them stay informed and become trusted advisors to Canadians and support them in making informed and responsible decisions regarding housing. These tools include The RESOURCE, a contentsharing tool that allows mortgage professionals to easily share short housing articles with their clients; the CMHC Mobile Kit, providing mobile access to a range of information on insurance products and premiums; a comprehensive suite of free training material to help them navigate a variety of mortgage and housing industry topics to enhance what they can offer Canadians; and several calculators to help homebuyers evaluate their financial situation and understand how much they can comfortably afford to spend on a mortgage. These calculators include:
For More Information
For more information about CMHC and how it makes a difference in the lives of Canadians, call 1-800-668-2642.