Last Friday Finance Minister Jim Flaherty had suggested Canada Mortgage and Housing Corporation could be pulled out the mortgage insurance business. No timetable was offered, 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”.
Interest rates haven’t moved much over the past week. Most of the current best rates are still available, although there are fewer lenders offering the lowest rates available.
Todays Top Rates
Fixed – 1 year
Fixed – 3 year
Fixed – 5 year
Lee Welbanks is a Mortgage Broker with Welbanks Financial Group, Lee will be posting these informative “Market Minutes” each Wednesday for you to enjoy. Please remember to subscribe to the Spring Realty Insider list to receive new blog post notifications, featured properties and insider access to Toronto’s hottest new developments right to your inbox.