23 November 2010
The deal is that Canada Housing is benefiting from international confidence in the country’s economy – foreign investors prefer not to risk and buy U.S. bonds, but they tend to choose Canadian stability for their investments.
In addition to it, CMHC, through Canada Housing Trust, keeps on financing banks and other mortgage companies and non-bank lenders in order to lower their costs and increase the competition.
Canada Housing Trust started selling bonds in 2001. Today it has about $189.5 billion of debt outstanding: $171 billion – in fixed-rate bonds and $18.5 billion – in floating-rate notes.
Speaking about the recent 0.25% hikes concerning five-year fixed rates, implemented by some of the banks, some believe it’s just a temporary decision.