What is the Canada Mortgage and Housing Corporation (CMHC)?
Answer
A federal Crown corporation founded in 1946 that insures mortgages, runs federal housing programmes, and is Canada's authoritative housing-market data source.
Explanation
Canada Mortgage and Housing Corporation (CMHC) is the federal Crown corporation responsible for federal housing policy, mortgage insurance, and housing market data. It was established in January 1946 as Central Mortgage and Housing Corporation, originally to manage post-Second World War housing for returning veterans. The corporation reports to Parliament through the Minister of Housing, Infrastructure and Communities.
CMHC's largest commercial activity is insuring high-ratio residential mortgages (those with down payments below 20 per cent of the home value). Federal regulation requires high-ratio mortgages from federally regulated lenders to be insured. CMHC competes with private mortgage insurers Sagen (formerly Genworth Canada) and Canada Guaranty. Together the three insurers cover the bulk of Canadian high-ratio mortgages, with insurance premiums paid up front by the borrower and the federal government guaranteeing CMHC's obligations.
CMHC also delivers federal housing programmes. The National Housing Strategy, launched in November 2017 with $40 billion (later expanded to $82 billion) over ten years, runs through CMHC's Affordable Housing Fund, Rapid Housing Initiative, Apartment Construction Loan Programme, Canada-Ontario, Canada-Quebec, and other bilateral housing agreements, the National Housing Co-Investment Fund, the Federal Lands Initiative, and the Reaching Home homelessness strategy. The Housing Accelerator Fund of $4 billion (2023) and the Apartment Construction Loan Programme of $55 billion (2024) target purpose-built rental supply.
CMHC's Housing Market Information Portal is the most authoritative source of Canadian housing market data, including starts, completions, sales, rental vacancy rates, and price indices. The corporation publishes the annual Housing Market Outlook, the Rental Market Report, the Mortgage and Consumer Credit Trends, and the Housing Supply Report. CMHC's research estimated in 2022 that Canada needs about 3.5 million additional housing units by 2030 to restore affordability, a target that has shaped federal and provincial housing policy ever since.
Why this matters for your test
CMHC sits behind almost every Canadian mortgage with a small down payment. Recognising the 1946 founding and the National Housing Strategy gives candidates two specific anchors.
Source: Canada Mortgage and Housing Corporation; Department of Finance Canada
