CMHC Releases 2017 Third Quarter Financial Report


CMHC Releases 2017 Third Quarter Financial Report

Canada Mortgage and Housing Corporation (CMHC) has released its 2017 third quarter financial report, as well as supplemental data on its Mortgage Loan Insurance, Securitization, and Covered Bonds business activities. New this quarter is the addition of Assisted Housing supplemental data.

“CMHC continues to deliver results for Canadians. The Government, through CMHC, is making unprecedented investments to help Canadians in housing need as part of the National Housing Strategy. Commercially, we continue to manage our mortgage loan insurance and securitization operations in the best interests of long-term financial stability.”

Wojo Zielonka, Chief Financial Officer and Senior Vice-President, Capital Markets


CMHC provides federal funding in support of housing programs for Canadians in need, including on-reserve. During the quarter, CMHC provided some $520 millionfor housing programs on behalf of the Government of Canada. During the nine months ending September 30, 2017, CMHC has:

  • Provided more than $2.6 billion for housing programs on behalf of the Government of Canada to help Canadians in need.
  • Supported more than 122,500 households across Canada since April 2016 in affordable and social housing through the Social Infrastructure Fund, which targets programs such as the renovation and retrofit of social housing, seniors’ housing and shelters for victims of family violence.
  • Signed the first commitment under the Rental Construction Financing Initiative


Mortgage loan insurance enables Canadians to purchase homes with a down payment starting at 5%. CMHC is also Canada’s only provider of mortgage loan insurance for multi-unit residential properties, facilitating the creation of rental housing for Canadians.

CMHC provided mortgage loan insurance for more than 63,500 new units in the third quarter, for a total of more than 189,000 new units year-to-date. Volumes have decreased largely as a result of the new regulations announced in the fourth quarter of 2016. As a result, CMHC’s total insurance-in-force decreased to $484 billion as at September 30, 2017, a decrease of $28 billion from the end of 2016.

The quality of CMHC’s mortgage loan insurance portfolio remains strong, which is reflected in an overall arrears rate of 0.30%. As well, for the nine months ending September 30, 2017, the typical CMHC-insured borrow had, on average:

  • Loan amount of $260,577
  • Credit score of 752
  • Total debt service (TDS) ratios of 36.6%

CMHC’s securitization programs enable Canadians to better access mortgage financing by facilitating access to funds for residential mortgage lending by approved financial institutions. They also provide investors with opportunities to hold high quality, secure investments that support the Canadian residential mortgage market.

For the nine months ending September 30, 2017, new securities guaranteed totalled $113 billion. This consists of:

  • $82.8 billion for National Housing Act Mortgage-Backed Securities.
  • $30.2 billion for Canada Mortgage Bonds.


CMHC’s mortgage loan insurance and securitization guarantee programs operate on a commercial basis without the need for funding from the Government. As a result of these activities, CMHC has:

  • Generated third quarter net income (after taxes) of $467 million.
  • Approved a dividend of $290 million, payable to the shareholder, the Government of Canada.

The dividend balances returning excess capital to our shareholder while retaining sufficient capital to protect against housing market risks. CMHC remains well capitalized with current capital holdings of 179% of OSFI’s regulatory capital requirements for mortgage insurers.

CMHC helps Canadians meet their housing needs. As Canada’s authority on housing, we contribute to the stability of the housing market and financial system, provide support for Canadians in housing need, and offer objective housing research and advice to Canadian governments, consumers and the housing industry. Prudent risk management, strong corporate governance and transparency are cornerstones of our operations.

SOURCE Canada Mortgage and Housing Corporation

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