CMHC, also known as the Canada Mortgage and Housing Corporation, is a federal government agency in Canada that provides mortgage insurance, helps Canadians access affordable housing, and promotes a stable and sustainable housing market. It operates under the authorities of the National Housing Act and serves as the country's leading authority on housing and mortgage markets.
The primary role of CMHC is to provide mortgage loan insurance to financial institutions, which enables them to lend to homebuyers who may have low down payments. This insurance protects lenders in case a borrower defaults on their mortgage, reducing the risk associated with these loans. By making homeownership more accessible to a wider range of Canadians, CMHC aims to contribute to the stability of the housing market and assist in the growth of the economy.
Additionally, CMHC conducts extensive research and analysis on housing markets, trends, and affordability issues across Canada. They provide valuable information to policymakers, consumers, and the real estate industry, aiding in making informed decisions related to housing and mortgage markets.
CMHC also plays a crucial role in promoting affordable and sustainable housing by working with different stakeholders, including government entities, non-profit organizations, and communities. They facilitate the development of affordable housing projects and provide financial assistance and innovative solutions to address housing challenges faced by vulnerable populations.
Overall, CMHC's mandate revolves around improving access to affordable housing, promoting housing market stability, and ensuring the availability of mortgage financing to Canadians.
