Canada Expands Homeownership Programs

The Canada Mortgage and Housing Corp. (CMHC) serves as Canada’s federal housing authority, extending mortgage financing to prospective buyers and delivering programs aimed at making home purchase more affordable for additional Canadians.

CMHC was established after World War II as a crown corporation, with the initial mandate of creating affordable housing for returning war veterans and low-income families.

In the 1950s, it began underwriting mortgage loans for Canadian banks and issuing mortgage loan insurance, and in the ’60s, built the country’s first cooperative housing as well as a number of multiunit residential buildings.

Today, CMHC continues to make homeownership accessible to Canadians who could not otherwise purchase properties, through mortgage insurance and financial assistance programs.

Mortgage insurance is required in Canada for buyers making down payments of less than 20%, and as a public mortgage insurer, CMHC helps buyers achieve homeownership with smaller down payments at fair interest rates, as well as protects lenders from buyers who default on their mortgage repayments.

CMHC also assists with payment deferral plans and other forms of assistance for buyers and renters facing financial hardship, and offers housing programs for First Nations and Indigenous communities.

Additionally, CMHC conducts research and provides analysis into real estate trends to help shape housing policy, and serves as a resource for Canadians seeking information about buying or renting property.

CMHC’s National Housing Strategy, introduced in 2017, is a 10-year, C$70 billion plan that includes a program to reduce first-time home buyers’ down payment size, expand the housing supply, renovate existing affordable housing and reduce homelessness.