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Canada Mortgage and Housing Corporation (CMHC) today released its Quarterly Financial Report for Q1 2024 showing a strong, stable quarter with an increase in net income, which directly reduces the Government of Canada's annual deficit.
Our net income for the first three months of 2024 was $374 million, up 13 % from $331 million in the same quarter in 2023. The increase is largely due to additional volumes in multi-unit insurance products, mortgage funding and higher investment income.
Multi-unit insurance insured volumes increased by almost $6 billion over the same quarter last year, amounting to nearly 20,000 more housing units insured than in Q1 2023. We provided multi-unit insurance for just over 63,000 units in Q1 2024 and of those, close to 25,000 were for new construction. This was largely driven by take-up of our MLI Select product which directly contributes to adding new supply of housing, once construction is complete.
Quote:
“We are pleased with the success of our multi-unit insurance products. An increase of nearly 42% in units and 72% in insured volumes is encouraging and very positive for the housing market. We are also very happy to see the investments in housing announced by the Government of Canada in Budget 2024 and will continue to work diligently to deliver these important initiatives for Canadians.”
Additional highlights for the three-month period ending March 31, 2024:
- Arrears for mortgages insured by CMHC remain low at 0.29%, resulting in low levels of claims paid. The arrears rate increased slightly, up from 0.28% in the same quarter last year, and remain below historical trends.
- Transactional homeowner unit volumes increased by 2.9% to 7,295 compared to 7,090 in Q1 2023.
- We guaranteed $52 billion in new securities, an increase from $43 billion in Q1 2023, resulting from increased guarantee limits announced in September 2023 by the Government of Canada.
- The new home construction market began 2024 strongly, marking one of its strongest first quarters on record. Housing starts reached 252,124 SAAR units, up 15% from the first quarter of 2023, and exceeding the average level of 2023.
- Canada’s average MLS® price was $668,559 in the first three months of 2024, 4% higher than the same period in 2023. According to our recently released Housing Market Outlook report, prices are likely to further rebound, indicating a lack of short-term affordability improvement.
- In Q1 2024, our Board of Directors declared a $145 million dividend to our shareholder, the Government of Canada.
| Q1 Highlights | Three months ended March 31, 2024 |
|---|---|
| Net income ($M) | 374 |
| Government funding ($M) | 2,000 |
| New securities guaranteed ($B) | 52 |
| New securities guaranteed: National Housing Act Mortgage-Backed Securities (NHA MBS) ($B) | 36 |
| New Securities Guaranteed: Canada Mortgage Bonds ($B) | 16 |
| Insured volumes (units): Transactional homeowner insurance | 7,295 |
| Insured volumes (units): Portfolio insurance | 1,991 |
| Insured volumes (units): Multi-unit residential insurance | 63,256 |
| Capital management | As at 31 March 2024 |
|---|---|
| Total Mortgage Insurance capital ($B) | 10.5 |
| Mortgage Insurance capital available to minimum capital required (%) | 185% |
| Total Mortgage Funding capital available ($B) | 1.5 |
| Economic capital available to capital required (Mortgage Funding) (%) | 109% |
| Insurance-in-force ($B) | 418 |
| Guarantees-in-force ($B) | 524 |
| Canadian residential mortgages with CMHC insurance coverage (%) | 19.4% |
| National arrears rate for CMHC-insured mortgages (%) | 0.29% |
The full Quarterly Financial Report is available online.
CMHC continues to deliver the National Housing Strategy (NHS), a 10-year initiative with investments of more than $82 billion, giving more Canadians a place to call home. The NHS covers the entire housing continuum, from shelters and transitional housing to community and affordable housing, to market rental and homeownership. CMHC reports progress on the achievement of NHS targets quarterly online.
CMHC supports the housing market and financial system stability by providing support for Canadians in housing need, and by offering housing research and advice to all levels of government, consumers, and the housing industry in Canada. Follow us on Twitter, YouTube, LinkedIn, Facebook and Instagram.
For more information contact:
CMHC Media Relations
media@cmhc-schl.gc.ca
