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Canada Mortgage and Housing Corporation (CMHC) today released its Quarterly Financial Report showing continued strong demand for multi-unit insurance products. The increases have been largely driven by our MLI Select product which allows for longer amortizations and higher loan to value, accessibility, and climate compatibility.
For the three months ended September 30, 2024, we insured 64,979 multi-unit residential units of which 29,878 are new construction, an increase of 26% over 51,443 units insured during the same quarter of 2023. We are seeing continued strong growth in our multi-unit insurance products, in both insured units and dollars. In total, we insured 206,157 units through our multi-unit products in the first three quarters of 2024, up from 156,419 during the same period in 2023. Insured volumes totaled $47,624 million in the first three quarters of 2024, up from $29,911 million during the same period last year – a 59% increase.
CMHC is Canada’s only provider of mortgage loan insurance for multi-unit residential properties. Our insurance facilitates access to preferred interest rates, lowering borrowing costs for the construction, purchase and refinance of multi-unit residential properties, and facilitates renewals throughout the life of the mortgage.
CMHC’s mandate includes our commercial insurance products as well as delivering housing programs and initiatives on behalf of the Government of Canada. This includes the new Co-Op Housing Development Program (CHDP) launched in Q3. Starting this year, the program will provide $1.5 billion in loans to support the development of thousands of affordable rental co-operative housing units in Canada. CMHC will fund up to 100% of the eligible project costs, on residential space and up to 75% of eligible non-residential project costs.
Quote:
“Facilitating the construction of purpose-built rentals remains a key factor in tackling the country’s housing supply and affordability challenges. We are pleased to see such consistent and increasing uptake in our multi-unit insurance products, which are an important factor in supporting the creation of rental supply in Canada.”
Additional highlights for the three-month period ending September 30, 2024:
- High house prices and interest rates continue to impact transactional homeowner unit volumes with 13,749 units insured in Q3 2024, down from 15,623 in Q3 2023.
- During Q3, the Government of Canada announced a suite of reforms to mortgage rules to make mortgages more affordable for Canadians and help put homeownership within reach. These include:
- Increasing the $1 million price cap for insured mortgages to $1.5 million, effective 15 December 2024, to reflect current housing market realities and help more Canadians qualify for a mortgage with a downpayment below 20 per cent.
- Expanding eligibility for 30-year mortgage amortizations to all first-time homebuyers and to all buyers of new builds, effective 15 December 2024, to reduce the cost of monthly mortgage payments and help more Canadians buy a home.
- Additionally, starting January 15, 2025, homeowners will be able to refinance their insured mortgages to access the equity in their homes and help pay for the construction of a secondary suite.
These new measures may increase volumes and lead to a change in composition of our transactional homeowner insurance business, however the magnitude is not currently known.
- Additionally, arrears for mortgages insured by CMHC remain low at 0.30% which is below historical levels, resulting in low levels of claims paid.
| Q3 Highlights | Three months ended 30 September 2024 | Year-to date September 30, 2024 |
|---|---|---|
| Net income ($M) | 366 | 1,104 |
| Government funding ($M) | 980 | 3,688 |
| New securities guaranteed ($B) | 60 | 164 |
| Insured volumes (units): Transactional homeowner insurance | 13,749 | 35,787 |
| Insured volumes (units): Portfolio insurance | 1,000 | 5,676 |
| Insured volumes (units): Multi-unit residential insurance | 64,979 | 206,157 |
| Capital management | As at 30 September 2024 |
|---|---|
| Total Mortgage Insurance capital ($B) | 11.2 |
| Mortgage Insurance capital available to minimum capital required (%) | 191% |
| Total Mortgage Funding capital available ($B) | 1.8 |
| Economic capital available to economic capital required (Mortgage Funding) (%) | 120% |
| Insurance-in-force ($B) | 431 |
| Guarantees-in-force ($B) | 539 |
| Canadian residential mortgages with CMHC insurance coverage (%) | 19.5% |
| National mortgage arrears rate (%) | 0.30% |
The full Quarterly Financial Report is available online.
CMHC plays a critical role as a national convenor to promote stability and sustainability in Canada’s housing finance system. Our mortgage insurance products support access to home ownership and the creation and maintenance of rental supply. Our research and data help inform housing policy. By facilitating cooperation between all levels of government, private and non-profit sectors, we contribute to advancing housing affordability, equity, and climate compatibility. And we actively support the Government of Canada in delivering on its commitment to make housing more affordable.
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For more information contact:
CMHC Media Relations
media@cmhc-schl.gc.ca
