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Canadians can expect greater oversight of CMHC in the future

We were warned earlier in the year that the Canadian Mortgage and Housing Corporation (CMHC) would be backing fewer Canadian home loansmoving forward, but little seems to have changed on the ground.


Now, the new federal budget is planning for greater oversight of the federal crown corporation, which was founded to provide insurance on Canadian mortgages where buyers are unable to produce a down payment of 20 percent or more.


“The government will propose legislative amendments to strengthen oversight of CMHC and to ensure its commercial activities are managed in a manner that promotes the stability of the financial system,” the budget said.


Banks are required to insure mortgages that don’t meet the minimum 20-percent down payment threshold. Apparently, in recent years, banks have been insuring mortgages that are eligible to be processed without the insurance. Given that purchasers bear the burden of the insurance cost, it’s no wonder that this approach seems attractive to lenders. No additional cost to them – substantial decrease in potential risk of loss.


Three years ago, CMHC reached the ceiling for mortgages that it was allowed to insure, by law, at $450 billion. That number was adjusted to $600 billion at that time. By the end of 2011, CMHC was insuring $541-billion in Canadian mortgage loans.


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Norm Fisher
Royal LePage Saskatoon Real Estate

Norm Fisher, Author of the TeamFisher Saskatoon Real Estate Blog

About Norm

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.Less...

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.

Norm is known for his passion for technology and can most often be found exploring and experimenting with the next big thing in real estate marketing. He was the first Saskatoon real estate agent to promote a home online and has been an early adopter of new technologies ever since. “Everything about this business has changed over the past 20 years, and it will happen again in the next ten. An open mind and a curious attitude are all that’s needed to continue to find new ways to serve our clients by delivering a faster, smoother, worry-free transaction,” says Norm.

In his spare time, Norm enjoys Crossfit and cycling, some years accumulating over 2,000 kilometres on the road. He’s a strong supporter of the Royal LePage Shelter Foundation and enjoys raising funds by joining fun, fitness-related initiatives like the Grouse Grind for Shelter. In 2015, he trekked the Peruvian Andes to Machu Picchu. In 2017 he walked the southern highlands of Iceland across mountains, sand, snow, ice, lava fields and forest for seven days. Collectively those initiatives raised over a million dollars for Canadian women's shelters.
 

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