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Tuesday, 1 May 2012

Is CMHC history?

On Friday Finance Minister Jim Flaherty has suggested Canada Mortgage and Housing Corporation could be pulled out the mortgage insurance business. Flaherty didn’t offer a timetable, but said as long as “affordable mortgage insurance is available” it’s “not essential” it be offered by the government.
This comes as Ottawa puts CMHC under closer scrutiny and tighter control, in light of how big a player the agency really is in the overall Canadian economy. Through CMHC and its two private-sector competitors (backed 90% by the government) Canadians are approaching $1 Trillion in exposure to insured mortgages.
Oversight of CMHC is being moved to the country’s top banking regulator, The Office of the Superintendent of Financial Institutions. Control shifts from the federal human resources department to the finance department, which gets representation on the agency’s board through a deputy minister.
Finance Minister Jim Flaherty said that this will “contribute to the stability of the housing market and benefit all Canadians” 

Now there is more than ever you need a professional mortgage broker to help you to make sure you get the right mortgage rate and the product.