OTTAWA, May 3, 2018 — Canada Mortgage and Housing Corporation (CMHC) today released its 2017 Annual Report highlighting its contributions to the stability of housing markets and the financial system while also providing support for Canadians in housing need.
CMHC also published supplemental data on its Mortgage Loan Insurance, Assisted Housing, Securitization and Covered Bonds activities.
Helping Canadians in housing need gain access to suitable housing they can afford
- Invested $3.2 billion to create much-needed housing units for low- and middle-income Canadians across the country. Through Budget 2016 investments, we have supported more than 250,000 households since April 2016.
- Announced Canada’s first-ever National Housing Strategy, with the goal of reducing chronic homelessness by 50% and removing 530,000 households from housing need.
Contributing to the stability of the financial system and facilitating access to housing
- Provided mortgage loan insurance for more than 250,000 homes. Of our approved homeowner applications, 14% were in rural areas and some 65% supported first time home buyers.
- Insured close to 120,000 rental units during the year — a five-year high.
- Provided guarantees for $167 billion in securities to support residential mortgage financing. This includes $127 billion in National Housing Act Mortgage-Backed Securities and $40 billion in Canada Mortgage Bonds.
Delivering results for Canadians
CMHC’s mortgage loan insurance and securitization guarantee programs operate on a commercial basis without funding from the Government. As a result of these activities, in 2017 we generated net income of $1.8 billion.
In 2017, we also declared dividends totalling $4.7 billion to our shareholder, the Government of Canada. An additional dividend of $1 billion was approved by CMHC’s Board of Directors on March 22, 2018.
The dividend balances returning excess capital to our shareholder while retaining sufficient capital to protect against housing market risks. We intend to continue to return excess capital to the Government while establishing a consistent dividend that allows us to maintain capital in line with our long-term capital needs.
As at December 31, 2017, we remained fully capitalized with $15.2 billion in total mortgage insurance capital available, representing 184 % of the minimum regulatory capital target.
|Total Assets||$267.1 B|
|Total Liabilities||$249.3 B|
|Total Equity||$17.7 B|
|Net Income||$1.8 B|
|Amount provided by the federal government through CMHC for housing programs||$3.2 B|
|Mortgage Loan Insurance|
|Number of units insured (2017)||254,252|
|Insurance-in-force (as at Dec. 31, 2017)||$480 B|
|Average equity: transactional homeowner (2017)||7.6%|
|Average credit score: transactional homeowner loans (2017)||752|
|Average insured loan amount: transactional homeowner (2017)||$261,187|
|Average arrears rate (as at Dec. 31)||0.29%|
|Total guarantees-in-force (as at Dec. 31, 2017)||$477 B|
|Annual securities guaranteed (2017)||$167 B|
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.
In 2017, we continued to transform the way we work to become a more agile organization that Canadians can be proud of. This positioned us for a historic accomplishment: announcing Canada’s first-ever National Housing Strategy (NHS). Through the NHS and continued responsible management of our commercial activities, we will help ensure more Canadians can access housing that meets their needs.
We saw strong performance in all of our business lines in 2017. We invested $3.2 billion to create much-needed housing units for low- and middle-income Canadians across the country while generating $1.8 billion in net income from our mortgage loan insurance and securitization activities.
Information on this release: