CMHC Housing Exposure Reduced to $520 Billion
CBJ — Canada’s national housing agency says it managed to ratchet down its exposure to the country’s mortgage market in the first quarter of the year.
The Canada Mortgage and Housing Corporation had $520 billion worth of mortgages on its books as of the end of March. That’s a slight reduction from $526 billion at the end of 2015.
By law, the CMHC can’t hold any more than $600 billion and last year the agency said it would take steps to reduce its exposure as it got near the threshold.
Anyone looking to buy a home in Canada with less than 20 per cent down must get CMHC insurance, which is paid for by the borrowers but pays out to the lender in case of default. All in all, the agency says 38% of all outstanding Canadian mortgages had CMHC insurance on them at the end of March.