Latest news with #CanadaMortgageandHousingCorporation
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
Hamilton Spectator
24-05-2025
- Business
- Hamilton Spectator
Wesgroup proposes significantly more density at Coronation Park site to offset new Metro Vancouver fees, affordable housing
Wesgroup approached Port Moody council on Tuesday with a multi-pronged proposal to keep its long-planned Coronation Park development on track – including significant density increases, alternative financial securities, and support tied to a federal financing program. Spanning 15 acres, the development was set to include six residential towers between 26 and 31 storeys and 100,000 square feet of commercial space following council approval in 2023. Of the 2,587 units, 101 were set to offered as rentals. The May 10 delegation from Wesgroup follows a 2023 letter of intent the developer submitted to explore affordable housing options in exchange for increased density after concerns were raised about the complete absence of below-market units in the project. The proposal will require another OCP amendment and rezoning to allow for another tower to be built on site, as well increasing the height of three other towers. Dean Johnson, Wesgroup's senior vice president of development, said the amount of density is needed to offset costs related to recent increases to Metro Vancouver developer cost charges (DCCs) hurting the project's bottom line, and building market rentals under the Canada Mortgage and Housing Corporation's (CMHC) Apartment Construction Loan Program (ACLP). 'The CMHC's ACLP is the only viable path forward in today's financial environment,' Johnson said. 'We have two options in front of us: additional density to offset the cost, or decrease the amenity package we previously agreed to with the community. We do not want to go down that path.' Wesgroup's proposal would add an additional 35-storey tower, as well as 13 storeys on three other towers. In exchange, Wesgroup would convert one of the 26-storey towers fronting Ioco Road to 100 percent rental housing. Of its 288 units, 72 would be secured at below-market rates for 25 years. CMHC's $55-billion ACLP provides low-cost financing to developers in exchange for rental and affordable housing commitments. But the 2025 funds have already been claimed, and the 2026 intake window is nearly full. In order to qualify, Wesgroup needed municipal confirmation that Port Moody supports the project's alignment with CMHC affordability goals. While council only received the proposal for information, it unanimously approved the issuance of a 'comfort letter' needed to advance Wesgroup's application to the CMHC. Offsetting costs Shortly after Port Moody council approved Coronation Park in October 2023 , Metro Vancouver's Mayor's Council approved steep increases to regional DCCs, resulting in a $30 million in unplanned fees, according to Johnson. He said the DCC spike is a significant cost burden on the project, and without the added density, Wesgroup may have to scale back the amenity package approved for the development. 'There was a substantial increase – once in a lifetime, really, for many of us – and this cost is going to be something that we have to deal with on this project,' Johnson said. Additional density is also needed due to the value difference between market condominiums and market rental. Most of the additional square footage, however, is being used to offset Metro Vancouver's DCC increases, which account for approximately 77 percent of the increase in density. Johnson noted that one of the benefits of using the CMHC program is that both towers facing Ioco Road would be built simultaneously, while much of the density would be added in later phases of the project. Surety bonds Wesgroup's final request was for the city to consider accepting surety bonds as an alternative to letters of credit when developers post financial securities tied to development permits. A surety bond offers municipalities a secure financial guarantee that a developer will complete their obligations, while giving the developer more financial flexibility compared to traditional bank-issued letters of credit. 'Letters of credit tie up millions of dollars in equity,' Johnson said. 'Surety bonds are insured, regulated, and already accepted in municipalities like Burnaby, Surrey, and Vancouver.' He noted Wesgroup currently faces a $15.8 million letter of credit due in July, which it is seeking to defer until building permits are issued in March 2026. The company is still in the pre-sale phase and has not yet secured final project financing, making the immediate issuance of such a large letter of credit 'challenging,' Johnson said. Council response Coun. Haven Lurbiecki was sharply critical of the amount of density being proposed, and questioned whether the CMHC proposal was even related. She accused Wesgroup of 'shifting the goalposts' by asking the public to essentially subsidize an already massive project. Lurbiecki noted the original plan includes mostly studios and one-bedroom units at a time when the city needs affordable family-sized housing, townhomes, co-ops, four-plexes, and seniors housing. 'Anything but more condos,' she said. 'To even consider this request for more density, I just find it irresponsible and inexplicable.' Other councillors took a more supportive approach. Coun. Kyla Knowles welcomed the affordable housing plan and said the financial pressures facing developers must be understood if homes are to be delivered. 'We need homes. So let's build the homes,' Knowles said. 'If there's an extra $30 million in DCCs, you could say, 'Great, the developer makes less.' But that cost falls on end users.' She also supported Wesgroup's request to explore surety bonds as an alternative to letters of credit for financial security deposits. 'Financing has changed. It's gotten more challenging,' Knowles said. 'To not have any understanding of that means you are worsening the crisis.' Coun. Callan Morrison said he supported the comfort letter but wanted more information before weighing in on the broader density and financial deferral requests. 'I appreciate this is going to need a bigger discussion,' he said. Mayor Meghan Lahti emphasized the comfort letter was only to allow Wesgroup to begin its CMHC application – not an endorsement of all its future asks. 'We may support them sending in the application, but we may not support it at the end of the day,' she said. 'This is helping them get to the next step.' In principle, however, the mayor supported the rental housing proposal. 'If all things were equal, would we be supportive of a CMHC project happening on that site in the second tower? My answer is a resounding yes,' Lahti said. 'But obviously, there are multi-faceted levels of conversation that need to take place.' Staff will return with a report on the broader proposal – including the OCP amendment, rezoning, and requests related to financial securities and density.
Yahoo
23-05-2025
- Business
- Yahoo
The distant dream of owning a home: Canada sees growing inequality in home ownership
Home ownership is often seen as a symbol of success and is linked to various life opportunities, like starting a family or growing your wealth. It's also often seen as the ultimate housing goal, while renting is seen as transitional. Eventually, everyone is expected to climb up the housing ladder from renting to owning. Promoting home ownership is therefore at the centre of housing policy in many countries, including Canada. As of 2021, 67 per cent of Canadian households owned their home. However, deteriorating affordability in recent years has placed home ownership out of reach for many and called into question the ideal of home ownership. In a recent study, colleagues and I examined access to home ownership for different groups using census data from 1986 to 2021 in five metropolitan areas: Montréal, Toronto, Calgary, Edmonton and Vancouver. Our findings suggest that, for many, owning a home has become a distant dream. Based on statistical models that accounted for individual and household characteristics, we found that the probability of an average Canadian household owning a home (with or without a mortgage) improved steadily from 1991 to 2011, then dropped in 2016 and 2021, while the likelihood of owning with a mortgage substantially increased. This means growth in home ownership was primarily driven by mortgage debt. This trend was happening at the same time as a shift started in the 1990s towards financialization that treated housing more as an investment than a social good. Read more: The federal government stopped funding social housing programs, commercialized the Canada Mortgage and Housing Corporation (CMHC) and expanded its mortgage securitization programs. In other words, mortgage liberation successfully promoted home ownership for some time until 2011. All five metropolitan areas saw a decline in the number of renter households until 2011 (2016 for Montréal), when the number began increasing. In addition, outright ownership has become less prevalent over time. These findings defy the expected sustained growth of home ownership that commodification and financialization were supposed to bring. Another tenet of the home ownership narrative is that a free market provides equal opportunities for owning a home through two processes: the filtering process and mortgage liberalization. The filtering model suggests that homes built for higher-income families slowly deteriorate and depreciate, and can become affordable for lower-income people. This process, coupled with the increased access to mortgages, is expected to eventually grant home ownership opportunities to all. However, this mechanism is less likely to work for home ownership than for rentals. Owner-occupied homes often take a long time, sometimes decades, to depreciate. By the time they become available and affordable, the unit may require major and costly renovations. In practice, many owner-occupied units often 'filter up' rather than downward, through gentrification or acquisition by financial investors. The increased access to mortgages does not benefit everyone either. Many low-income people or those without stable jobs do not qualify for mortgages, and racialized people are more likely to be denied access to credit due to discrimination. Substantiating these counter-arguments are growing inter-generational and income inequalities in home ownership. All age cohorts saw improved access to home ownership up until 2021. However, the three age groups under 45 — 15-24, 25-34 and 35-44 — saw steady declines in home ownership rates. These were mostly millennials and Gen Zers who face disproportionate affordability pressure compared to older generations. Homeowners over 55 are also reckoning with affordability. We found the share of older homeowners holding a mortgage rose between 1986 and 2021 from 24 to 40 per cent for those 55 to 64, and from 10 to 26 per cent for the 65-74 age group. In other words, more people are having to rely on larger loans and longer amortization periods to buy and maintain their homes, making it harder to pay back their mortgage before retirement. The disparities in home ownership opportunities among different incomes have also increased. While the top 20th percentile income group witnessed increased probability of owning a home between 2011 and 2016, other income groups experienced stagnant or decreased chances. Among owner households, Canadians across all incomes saw increased mortgaged ownership from 1996 to 2016. The lowest income group saw the fastest growth in mortgaged home ownership but were still the least likely to own with a mortgage due to low income or discrimination. Rising house prices coupled with loosening mortgage lending regulations may have pushed them into mortgaged ownership. A final compelling narrative is that home ownership affords better well-being and financial security due to higher perceived social status and a stronger sense of autonomy and stability. The financial security associated with home ownership is supported by the idea of 'housing asset-based welfare.' This model conceptualizes home ownership as a means for young people to build assets for financial security in times of need and old age. However, this approach encourages early-life debt, and may only work if mortgage loans remain affordable until they are paid off. Paradoxically, this asset-building mindset drives speculative investment and house prices, making outright home ownership more difficult and mortgaged ownership less affordable. The well-being associated with home ownership is debatable as well. My colleagues and I have shown elsewhere that perceived benefits to a person's well-being are not intrinsic to home ownership. Rather, they are created and normalized by a system that makes home ownership more secure and appealing than alternatives like renting. In reality, the financial security associated with home ownership has been undermined by rising housing costs, especially for low- and moderate-income homeowners with mortgages. Mortgaged homeowners with below-median incomes have seen their housing costs increase 25 per cent faster than their income over the study period, compared to five per cent for higher income families at the top 60th percentile. Manual Aalbers, a human geography professor at Belgium's University of Leuven, has argued that home ownership today has slowly changed 'from a policy goal into pure rhetoric … a means to an end. Mortgaged home ownership increasingly is there to keep mortgage and financial markets going.' To say the least, the broken promises of home ownership point to the failures of our current housing system that creates a hierarchy of tenures and two tiers of social class — homeowners and renters. Policies aimed at creating a fairer housing market are essential. These include improving home ownership affordability by providing more diverse types of housing for ownership and discouraging speculative investment. Such policies should also include enhancing housing security and asset-building opportunities for renters, and supporting the role of non-profits and social enterprises in meeting the needs of a broad range of income groups. This article is republished from The Conversation, a nonprofit, independent news organisation bringing you facts and trustworthy analysis to help you make sense of our complex world. It was written by: Yushu Zhu, Simon Fraser University Read more: How Canada can turn tariff tensions into a global affordable housing alliance Debunking myths about community housing: What governments and the public should know Victoria's planning reforms could help solve the housing crisis. But they are under threat This research project was funded by the Social Sciences and Humanities Council of Canada (SSHRC) through its Insight Development Grant and Partnership Grant. The project was part of the Community Housing Canada project, co-funded by Canada Mortgage and Housing Corporation (CMHC) and SSHRC.
Canada Standard
22-05-2025
- Business
- Canada Standard
The distant dream of owning a home: Canada sees growing inequality in home ownership
Home ownership is often seen as a symbol of success and is linked to various life opportunities, like starting a family or growing your wealth. It's also often seen as the ultimate housing goal, while renting is seen as transitional. Eventually, everyone is expected to climb up the housing ladder from renting to owning. Promoting home ownership is therefore at the centre of housing policy in many countries, including Canada. As of 2021, 67 per cent of Canadian households owned their home. However, deteriorating affordability in recent years has placed home ownership out of reach for many and called into question the ideal of home ownership. In a recent study, colleagues and I examined access to home ownership for different groups using census data from 1986 to 2021 in five metropolitan areas: Montreal, Toronto, Calgary, Edmonton and Vancouver. Our findings suggest that, for many, owning a home has become a distant dream. Based on statistical models that accounted for individual and household characteristics, we found that the probability of an average Canadian household owning a home (with or without a mortgage) improved steadily from 1991 to 2011, then dropped in 2016 and 2021, while the likelihood of owning with a mortgage substantially increased. This means growth in home ownership was primarily driven by mortgage debt. This trend was happening at the same time as a shift started in the 1990s towards financialization that treated housing more as an investment than a social good. Read more: Financial firms are driving up rent in Toronto - and targeting the most vulnerable tenants The federal government stopped funding social housing programs, commercialized the Canada Mortgage and Housing Corporation (CMHC) and expanded its mortgage securitization programs. In other words, mortgage liberation successfully promoted home ownership for some time until 2011. All five metropolitan areas saw a decline in the number of renter households until 2011 (2016 for Montreal), when the number began increasing. In addition, outright ownership has become less prevalent over time. These findings defy the expected sustained growth of home ownership that commodification and financialization were supposed to bring. Another tenet of the home ownership narrative is that a free market provides equal opportunities for owning a home through two processes: the filtering process and mortgage liberalization. The filtering model suggests that homes built for higher-income families slowly deteriorate and depreciate, and can become affordable for lower-income people. This process, coupled with the increased access to mortgages, is expected to eventually grant home ownership opportunities to all. However, this mechanism is less likely to work for home ownership than for rentals. Owner-occupied homes often take a long time, sometimes decades, to depreciate. By the time they become available and affordable, the unit may require major and costly renovations. In practice, many owner-occupied units often "filter up" rather than downward, through gentrification or acquisition by financial investors. The increased access to mortgages does not benefit everyone either. Many low-income people or those without stable jobs do not qualify for mortgages, and racialized people are more likely to be denied access to credit due to discrimination. Substantiating these counter-arguments are growing inter-generational and income inequalities in home ownership. All age cohorts saw improved access to home ownership up until 2021. However, the three age groups under 45 - 15-24, 25-34 and 35-44 - saw steady declines in home ownership rates. These were mostly millennials and Gen Zers who face disproportionate affordability pressure compared to older generations. Homeowners over 55 are also reckoning with affordability. We found the share of older homeowners holding a mortgage rose between 1986 and 2021 from 24 to 40 per cent for those 55 to 64, and from 10 to 26 per cent for the 65-74 age group. In other words, more people are having to rely on larger loans and longer amortization periods to buy and maintain their homes, making it harder to pay back their mortgage before retirement. The disparities in home ownership opportunities among different incomes have also increased. While the top 20th percentile income group witnessed increased probability of owning a home between 2011 and 2016, other income groups experienced stagnant or decreased chances. Among owner households, Canadians across all incomes saw increased mortgaged ownership from 1996 to 2016. The lowest income group saw the fastest growth in mortgaged home ownership but were still the least likely to own with a mortgage due to low income or discrimination. Rising house prices coupled with loosening mortgage lending regulations may have pushed them into mortgaged ownership. A final compelling narrative is that home ownership affords better well-being and financial security due to higher perceived social status and a stronger sense of autonomy and stability. The financial security associated with home ownership is supported by the idea of "housing asset-based welfare." This model conceptualizes home ownership as a means for young people to build assets for financial security in times of need and old age. However, this approach encourages early-life debt, and may only work if mortgage loans remain affordable until they are paid off. Paradoxically, this asset-building mindset drives speculative investment and house prices, making outright home ownership more difficult and mortgaged ownership less affordable. The well-being associated with home ownership is debatable as well. My colleagues and I have shown elsewhere that perceived benefits to a person's well-being are not intrinsic to home ownership. Rather, they are created and normalized by a system that makes home ownership more secure and appealing than alternatives like renting. In reality, the financial security associated with home ownership has been undermined by rising housing costs, especially for low- and moderate-income homeowners with mortgages. Mortgaged homeowners with below-median incomes have seen their housing costs increase 25 per cent faster than their income over the study period, compared to five per cent for higher income families at the top 60th percentile. Manual Aalbers, a human geography professor at Belgium's University of Leuven, has argued that home ownership today has slowly changed "from a policy goal into pure rhetoric ... a means to an end. Mortgaged home ownership increasingly is there to keep mortgage and financial markets going." To say the least, the broken promises of home ownership point to the failures of our current housing system that creates a hierarchy of tenures and two tiers of social class - homeowners and renters. Policies aimed at creating a fairer housing market are essential. These include improving home ownership affordability by providing more diverse types of housing for ownership and discouraging speculative investment. Such policies should also include enhancing housing security and asset-building opportunities for renters, and supporting the role of non-profits and social enterprises in meeting the needs of a broad range of income groups.
