If you’ve ever watched or read a news report on the Canadian housing and mortgage industry, you’ve probably heard the CMHC mentioned. You may have even dealt with them personally to insure your own mortgage.
The CMHC play a very important role in the Canadian lending landscape with good reason: they help people meet their housing needs.
The letters are an acronym for Canada Mortgage and Housing Corporation. They act as Canada’s authority on all matters of housing and help contribute to the strength of the market by helping lenders and borrowers alike.
The head office of the Canada Mortgage and Housing Corporation is in our nation’s capital. The Ottawa office is where the majority of dealings occur; however, they do have regional locations across Canada.
As the leading power for housing in Canada, the CMHC wears many hats. They provide:
Nowadays, the CMHC’s main function is to provide mortgage insurance to borrowers and help regulate the housing industry. When they were first created on January 1st, 1946, they had an entirely different role.
The National Housing Act, passed by the Parliament of Canada in 1938, was intended to promote the construction of new dwellings, repair and modernize existing homes and improve living conditions for all Canadians. Once the act was in place, the government needed a body to help enforce it. Thus, the CMHC was born.
In the period following the Second World War soldiers were returning to Canada in dire need of affordable housing for their families. The CMHC, then known as the Central Mortgage and Housing Corporation was shaped to house returning soldiers and give them quality homes at an affordable price. The CMHC further expanded to offer aid to loan and mortgage companies, and with the government, deliver a social housing program to assist low-income families.Back
Your home is your most valuable asset. It is probably the single largest investment you will make in your lifetime. Your home is more than a place to rest your head and raise a family. Your home contains equity. It is a treasured resource and in some cases, can even be used as an ATM (aka cash back mortgages and HELOCs – don’t worry we’ll get there).
Everyone who is looking to purchase a home will need a mortgage. But, what is a mortgage exactly and why do you need it? Besides being the term to describe a loan secured by real estate, a mortgage allows you to access funding to procure your dream home.
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