8 November 2019

CMHC says any market weakness will improve during the next few years due to these factors. Overall, such tendencies support the central bank’s recent decision to keep the rates unchanged.

Leaving rates at current levels may prevent a rebound of credit growth, which the Bank of Canada has seen as an economic risk earlier. Nevertheless, CMHC noted that falling global interest rates may reactivate mortgage credit growth next year.

CMHC says Mortgage Investment Corporations represented $13 billion in market volume at the end of the previous year. Such firms, which do not fall under the rules of chartered banks, are expected to grow by 10% annually, while the average increase of other mortgage institutions is only 2%.