3 February 2011
“It’s obvious that the Canadian market is stable. Reduced lending and mortgage insurance together with the strict banking regulations helped to keep the Canada’s banking system at the necessary level”.
It was also noted that CMHC follows the guidelines of the Office of the Superintendent of Financial Institutions concerning the capital reserves – they are kept at close to double the minimum amount required.
“The quality of CMHC’s services is very high,” – the statement says. “At the end of 2009 homeowners with CMHC insured mortgages, on average, had 45% of equity in their homes”.
At the same time, CMHC’s capital level for the insurance business was $8.2 billion. In addition to it, there were additional $6.7 billion in unearned premiums.