27 February 2014

Today CMHC has only two competitors in the private sector: Genworth MI Canada Inc., and Canada Guaranty Mortgage Insurance Co. Generally, they try to match CMHC’s prices, as it’s the largest competitor for them. According to certain sources, the private-sector players don’t want to be the first to raise prices, as they’re afraid of loosing clients. Meanwhile, they would like to see CMHC raising its premiums.

During the first 9 months of 2013 CMHC earned almost $1.28-billion.

And though we don’t know yet whether the Corporation will raise its premiums, such a change may fit with Mr. Flaherty’s plans to keep the mortgage market under control, as additional expenses for home buyers will have cooling effect on the real estate market.