Latest news with #CMHC
Associated Press
2 days ago
- Business
- Associated Press
CMHC releases results for first quarter of 2025
OTTAWA, ON, May 30, 2025 /CNW/ - Canada Mortgage and Housing Corporation (CMHC) today released its Quarterly Financial Report showing strong first quarter results despite a volatile economic environment due to global political factors including rising trade tensions. For the three months ended March 31, 2025, we insured 10,030 transactional homeowner units, an increase of 37% over 7,295 in Q1 2024 supported by decreasing interest rates which lower the cost of borrowing as well as a mortgage rule change, which now allows 30-year insured mortgage amortization. CMHC continues to see strong multi-unit residential volumes, which totaled $14,171 million in the first three quarters of 2025, up from $13,861 million during the same period last year – a 2% increase. The increase continues to be largely driven by the MLI Select product which allows for longer amortizations and higher loan to value, accessibility, and climate compatibility. In Q1, CMHC insured $10,476 million for MLI Select, an increase of 11% over $9,474 million during the same quarter of 2024. CMHC also delivers housing programs and initiatives on behalf of the Government of Canada. An initial $2.63 billion for the Canada Greener Homes Loan Program was fully committed due to high demand. The program received a top-up in Q1 2025 for CMHC to deliver an additional $600 million in interest-free loans for a total of nearly $3.23 billion, supporting 15,000 to 24,000 more homeowners. 'We will continue to assess the impact that economic factors could have on housing affordability, our financial outlook and our financial results. We are fully committed to being an organization Canadians can count on.' – Michel Tremblay, Chief Financial Officer and Senior Vice-President, Corporate Services Additional highlights for the three-month period ending March 31, 2025: The full Quarterly Financial Report is available online. CMHC plays a critical role as a national convenor to promote stability and sustainability in Canada's housing finance system. Its mortgage insurance products support access to home ownership and the creation and maintenance of rental supply. CMHC research and data help inform housing policy. By facilitating cooperation between all levels of government, private and non-profit sectors, it contributes to advancing housing affordability, equity, and climate compatibility. CMHC actively supports the Government of Canada in delivering on its commitment to make housing more affordable. Follow us on X (formerly Twitter), YouTube, LinkedIn, Facebook and Instagram. SOURCE Canada Mortgage and Housing Corporation (CMHC)
Cision Canada
2 days ago
- Business
- Cision Canada
CMHC releases results for first quarter of 2025 Français
OTTAWA, ON, May 30, 2025 /CNW/ - Canada Mortgage and Housing Corporation (CMHC) today released its Quarterly Financial Report showing strong first quarter results despite a volatile economic environment due to global political factors including rising trade tensions. For the three months ended March 31, 2025, we insured 10,030 transactional homeowner units, an increase of 37% over 7,295 in Q1 2024 supported by decreasing interest rates which lower the cost of borrowing as well as a mortgage rule change, which now allows 30-year insured mortgage amortization. CMHC continues to see strong multi-unit residential volumes, which totaled $14,171 million in the first three quarters of 2025, up from $13,861 million during the same period last year – a 2% increase. The increase continues to be largely driven by the MLI Select product which allows for longer amortizations and higher loan to value, accessibility, and climate compatibility. In Q1, CMHC insured $10,476 million for MLI Select, an increase of 11% over $9,474 million during the same quarter of 2024. CMHC also delivers housing programs and initiatives on behalf of the Government of Canada. An initial $2.63 billion for the Canada Greener Homes Loan Program was fully committed due to high demand. The program received a top-up in Q1 2025 for CMHC to deliver an additional $600 million in interest-free loans for a total of nearly $3.23 billion, supporting 15,000 to 24,000 more homeowners. "We will continue to assess the impact that economic factors could have on housing affordability, our financial outlook and our financial results. We are fully committed to being an organization Canadians can count on." – Michel Tremblay, Chief Financial Officer and Senior Vice-President, Corporate Services Additional highlights for the three-month period ending March 31, 2025: Arrears for mortgages insured by CMHC remain low at 0.30%, resulting in low levels of claims paid. The arrears rate increased slightly, up from 0.29% in the same quarter last year, and remain below historical trends. CMHC guaranteed $54 billion in new securities in Q1, 2025 an increase from $52 billion in Q1 2024 resulting from higher NHS MBS volumes compared to last year. Government funding and housing programs expenses are up compared to the same quarter in 2024, mainly driven by an increase of $447 million for the Housing Accelerator Fund program, $295 million for the Canada Community Housing Initiative. This was partially offset by a decrease of $85 million for the Affordable Housing Fund. Due to the nature of many housing programs, funding patterns may vary significantly year over year. The full Quarterly Financial Report is available online. CMHC plays a critical role as a national convenor to promote stability and sustainability in Canada's housing finance system. Its mortgage insurance products support access to home ownership and the creation and maintenance of rental supply. CMHC research and data help inform housing policy. By facilitating cooperation between all levels of government, private and non-profit sectors, it contributes to advancing housing affordability, equity, and climate compatibility. CMHC actively supports the Government of Canada in delivering on its commitment to make housing more affordable.
Yahoo
2 days ago
- Business
- Yahoo
CMHC releases results for first quarter of 2025
OTTAWA, ON, May 30, 2025 /CNW/ - Canada Mortgage and Housing Corporation (CMHC) today released its Quarterly Financial Report showing strong first quarter results despite a volatile economic environment due to global political factors including rising trade tensions. For the three months ended March 31, 2025, we insured 10,030 transactional homeowner units, an increase of 37% over 7,295 in Q1 2024 supported by decreasing interest rates which lower the cost of borrowing as well as a mortgage rule change, which now allows 30-year insured mortgage amortization. CMHC continues to see strong multi-unit residential volumes, which totaled $14,171 million in the first three quarters of 2025, up from $13,861 million during the same period last year – a 2% increase. The increase continues to be largely driven by the MLI Select product which allows for longer amortizations and higher loan to value, accessibility, and climate compatibility. In Q1, CMHC insured $10,476 million for MLI Select, an increase of 11% over $9,474 million during the same quarter of 2024. CMHC also delivers housing programs and initiatives on behalf of the Government of Canada. An initial $2.63 billion for the Canada Greener Homes Loan Program was fully committed due to high demand. The program received a top-up in Q1 2025 for CMHC to deliver an additional $600 million in interest-free loans for a total of nearly $3.23 billion, supporting 15,000 to 24,000 more homeowners. "We will continue to assess the impact that economic factors could have on housing affordability, our financial outlook and our financial results. We are fully committed to being an organization Canadians can count on." – Michel Tremblay, Chief Financial Officer and Senior Vice-President, Corporate Services Additional highlights for the three-month period ending March 31, 2025: Arrears for mortgages insured by CMHC remain low at 0.30%, resulting in low levels of claims paid. The arrears rate increased slightly, up from 0.29% in the same quarter last year, and remain below historical trends. CMHC guaranteed $54 billion in new securities in Q1, 2025 an increase from $52 billion in Q1 2024 resulting from higher NHS MBS volumes compared to last year. Government funding and housing programs expenses are up compared to the same quarter in 2024, mainly driven by an increase of $447 million for the Housing Accelerator Fund program, $295 million for the Canada Community Housing Initiative. This was partially offset by a decrease of $85 million for the Affordable Housing Fund. Due to the nature of many housing programs, funding patterns may vary significantly year over year. Q1 Highlights Three months ended March 31, 2025 Net income ($M) 434 Government funding ($M) 2,658 New securities guaranteed ($B) 54 New securities guaranteed: National Housing Act Mortgage-Backed Securities (NHA MBS) ($B) 38 New Securities Guaranteed: Canada Mortgage Bonds ($B) 16 Insured volumes (units): Transactional homeowner insurance 10,030 Insured volumes (units): Portfolio insurance 747 Insured volumes (units): Multi-unit residential insurance 55,383 Capital Management As at 31 March 2025 Total Mortgage Insurance capital ($B) 11.4 Mortgage Insurance capital available to minimum capital required (%) 193 % Total Mortgage Funding capital available ($B) 1.5 Economic capital available to capital required (Mortgage Funding) (%) 109 % Insurance-in-force ($B) 442 Guarantees-in-force ($B) 561 Canadian residential mortgages with CMHC insurance coverage (%) 19.6 % National arrears rate for CMHC-insured mortgages (%) 0.30 % The full Quarterly Financial Report is available online. CMHC plays a critical role as a national convenor to promote stability and sustainability in Canada's housing finance system. Its mortgage insurance products support access to home ownership and the creation and maintenance of rental supply. CMHC research and data help inform housing policy. By facilitating cooperation between all levels of government, private and non-profit sectors, it contributes to advancing housing affordability, equity, and climate compatibility. CMHC actively supports the Government of Canada in delivering on its commitment to make housing more affordable. Follow us on X (formerly Twitter), YouTube, LinkedIn, Facebook and Instagram. SOURCE Canada Mortgage and Housing Corporation (CMHC) View original content to download multimedia: Sign in to access your portfolio
CTV News
6 days ago
- Business
- CTV News
What's happening to Montreal's downtown condo market?
Although it may be faring better than Toronto's, the downtown Montreal condo market is facing headwinds. The median price of a condo jumped 3 per cent on the island in the past year, but it's fueled mostly by sales in the suburbs. The downtown market is much slower. 'One developer was telling me as a joke that his biggest competition in the new condo market was not other developers, but it was a condo he built five years ago,' Francis Cortellino, an economist with the Canada Mortgage and Housing Corporation, said. Recent numbers from the CMHC show just how tough the downtown condo market is. The CMHC says 25 per cent of recently built condos in downtown and Griffintown would now sell at a loss. If the owner decides to rent it out, the CMHC says the majority of landlords would not cover their expenses. 'If you take into account, monthly mortgage payments, insurance, taxes, condo fees, the rent that you're asking on the market would not be able to cover those losses,' Cortellino said. Real estate broker Amy Assaad says there are a number of reasons for that. One of them is the ban on foreign investors. 'The people who were buying these types of properties were investors, and we don't have these investors anymore, and that's what's affecting the market,' Assaad said. Not to mention oversupply, with a lot of units looking exactly the same. 'You're competing with thousands and thousands of units that are on the market at the same time,' Assaad said. According to the CMHC, Montreal faces many of the same challenges as Toronto, but the impact is different. 'The volume of condos in Toronto is way higher than Montreal,' Cortellino said. 'I would say there's investors in Montreal for the condo market, but that market is way larger in Toronto.' For Montreal, it results in a lot of downtown condos sitting on the market. Assaad says bigger units with more than one bedroom and more than one bathroom that also include parking tend to have higher resale value. 'A condo that was selling ten years ago is selling for less sometimes than what the person paid for it,' Assaad said. 'Whereas a single-family home downtown Montreal has tripled in value.'
Hamilton Spectator
25-05-2025
- Business
- Hamilton Spectator
Tempted to stretch the truth on a mortgage application to qualify for that home? Here's how it could haunt you for life
Mortgage fraud can take different forms — from impersonating a homeowner to faking your income to buy your dream home — and experts say lenders have become increasingly aware it's a problem. A recent Equifax report found that mortgage fraud, or providing false information on a mortgage application, decreased in 2024. However, steadily decreasing interest rates could attract more first-time homebuyers to the market, potentially leading to 'increased fraudulent activity in mortgage credit applications,' the report said. Additionally, more than a million homeowners are facing mortgage renewal this year at interest rates higher than when their term began, meaning they could have a harder time qualifying — and some experts say they could be tempted to stretch the truth. According to the Canadian Mortgage and Housing Corp . (CMHC), mortgage fraud includes misstating your work position or the amount of time you've had a job, saying you're a full-time employee if you're not, not disclosing other mortgages or debts, and other misrepresentations of your financial situation. The Equifax report noted falsified financial documents, such as bank statements and down payment information, are detected in more than 90 per cent of mortgage fraud cases. 'These are people who are paying others to create entirely false income documents that are totally fraudulent,' explains mortgage broker Ron Butler. Other cases could include applicants having someone lie on their behalf about where they're employed or how many hours a week they typically work, Butler says. A prospective homebuyer or a homeowner might engage in mortgage fraud because they're struggling to qualify for a home or because they want a cheaper mortgage. Experts say they're most likely getting bad advice from bad-acting professionals who would falsify documents for them because they have something to gain, like a commission on a sale or a fee for helping them to commit fraud. Butler says there's been 'ongoing recognition' among banks in recent years that fraud is a problem, and they've improved their detection techniques as a result. Buyers should know that whether or not a lender detects fraud, there can be serious consequences. 'The person who the banks are protecting by making you qualify at a certain rate is you,' says Leah Zlatkin, licensed mortgage broker and expert. Protect yourself by identifying bad actors Zlatkin says people should look out for 'predatory players' who may target first-time homebuyers. People looking to buy — rather than renew — are those most likely to come across 'conspirators,' Butler says, as 'there's a whole industry set up' to entice them. Crooked professionals won't outright suggest mortgage fraud; instead, Butler says, they'll probably make it sound like it's not a big deal to fake financials and say 'everyone does it' or 'you couldn't buy a house unless you did this.' Butler says some realtors may encourage homebuyers to falsify their financial documents because they, in particular, have a 'huge vested interest' in getting clients to qualify and purchase a property that would yield tens of thousands of dollars in commission. If they're showing a house that's out of a client's budget, the realtor might say something like, 'You can afford this house; we'll just put a little salt and pepper on the mortgage,' or, 'I'll look after that for you,' Butler adds. At that point, the professional would be creating fake documents for the application. Experts say bank representatives, bank employees or, less often, mortgage brokers, have also been known to facilitate the fraud. Zlatkin says it might sound like someone suggesting you 'bump your salary' or document a second job when you don't have one. 'You should never be changing any document that you're providing to a mortgage professional, whether it be in the branch or in a mortgage broker environment,' Zlatkin says. Phrases like 'creative financing,' 'easy mortgages' and 'no qualification necessary' are red flags, she says, adding everyone has to qualify for a mortgage. The professionals engaging in fraud might ask for some sort of payment on the side, such as cash, a transferred 'fee' or a gift card, according to Zlatkin. 'That wouldn't be happening in a normal mortgage circumstance,' Zlatkin says, adding any legitimate fees would be disclosed in the paperwork. Mortgage brokers are far less likely to engage in fraud because they're 'heavily scrutinized' and regulated by the Financial Services Regulatory Authority of Ontario, she says. Any documents they work on would be reviewed by the lender and a designated compliance officer, so there are 'three sets of eyes on paperwork when you're a mortgage broker.' And while it's most often legitimate professionals in legitimate establishments facilitating fraud, Zlatkin says it's sometimes done by a fraudster posing as a mortgage broker or other professional. She recommends homebuyers ensure the agent they're working with is a real broker and has a physical licence. Faking your documents on a mortgage application could have serious consequences — whether or not a lender picks up on fraud. 'If you are biting off more than you can chew, affordability can become a real problem for you,' Zlatkin says. And in the event that you can't pay the mortgage, you could go into default and lose your home, she adds. 'When you lose the home, you're going to be paying fees to the lender, who you didn't pay for months and months and months. They get extra fees for every time you default on your payments,' Zlatkin explains. 'Then by the time the fees are taken care of, by the time the sheriff kicks you out of the house, by the time there's all these consequences, the reality is that the equity in your home, even if you put down a healthy down payment, the equity in your home is deteriorated, because the lender has to make themselves right,' she says. That could also impact your credit, which could make it difficult to qualify for a credit card or another mortgage, Zlatkin adds. If a lender does detect fraud, they could cancel the mortgage at the last minute, preventing the buyer from being able to close the deal, explains real estate lawyer John Zinati. 'This buyer now can't complete the purchase,' Zinati says. 'This buyer might get sued by the seller. This buyer might lose their deposit. This buyer could be in a whole lot of trouble on the transaction — aside from what kind of marks will be flagged against them for fraud or possible fraud on a mortgage.' Legally, if a buyer doesn't close on a deal, the seller could keep their deposit as stated in the contract, Zinati explains. Additionally, if the seller goes on to sell the property for less than the price in the original deal, they can sue for the difference, he adds. A bank can also cancel a mortgage even if it was already approved and the purchase was finalized. 'The bank can send a letter that says, 'You have 30 days to pay us back, or we're gonna put your house up for sale,' ' Butler says. Additionally, the fraud could create problems for the homebuyer in the future, for things as simple as opening a chequing account or taking out a credit card, Butler adds. Depending on how 'absolutely incredibly obvious the fraud was,' the bank could alert other banks about the person, too.
