A Commitment to Affordability: CMHC releases 2019 Annual Report
Earlier this month, Canada Mortgage and Housing Corporation (CMHC) released its 2019 Annual Report, demonstrating its contributions to the stability of housing markets and the financial system while providing support for Canadians in housing need. In this way, CMHC has moved forward with its restated strategy of promoting housing affordability for all.
“For many Canadians, affordability is the key factor in finding a home. Our responsibilities on behalf of Canadians mean that we must manage risk responsibly and maintain financial stability so that we can continue to deliver results, and that’s what we have done in 2019,” said Evan Siddall, President and Chief Executive Officer. “That has put us on solid ground so that today –amid the evolving COVID-19 crisis ‒ we are not losing sight of our ultimate goal: that by 2030 everyone in Canada has a home they can afford and that meets their needs.”
CMHC also published business supplements on its Assisted Housing, Mortgage Insurance, Mortgage Funding, and Covered Bonds activities, providing additional depth and insights on each. As well, the 2019 stress test results are included in the annual report.
“In 2019 we have demonstrated commitment to the sound management of resources. This enables us to pay dividends to the Government while helping to create new and affordable housing for Canadians as well as promote market functioning through our Mortgage Insurance and Mortgage Funding activities,” said Lisa Williams, CMHC’s Chief Financial Officer.
Highlighted results below are as at December 31, 2019:
Facilitating access to housing while contributing to financial stability
- Invested more than $2 billion on behalf of the Government of Canada to create and support much-needed housing units for low- and middle-income Canadians, including on-reserve;
- Provided mortgage insurance for nearly 100,000Canadians, and for more than 127,000 rental units; and
- Provided guarantees for more than $170 billion in mortgage-backed securities. These guarantees benefit the Canadian housing industry by providing lenders with a reliable source of mortgage financing.
Delivering the National Housing Strategy (NHS) Initiatives
- Commited some $56 million to help Canadians buyhomes more affordably through the First-Time Home Buyer Incentive;
- Committed funding for more than 6,000 new affordable homes and for the repairs to 60,000 homes across the country through the National Housing Co-investment Fund; and
- Supported the construction of more than 15,900 new homes for renters through the Rental Construction Financing initiative.
Delivering results for Canadians
- Generated revenues and government funding of $4.7 billion and a net income of nearly $1.6 billion.
- Declared more than $2 billion in dividends, payable to our shareholder, the Government of Canada.
- We hold capital for these activities in line with our risk profile and with regulatory capital requirements. For our mortgage insurance portfolio, we had $12 billion in capital available (195% of the minimum regulatory capital required) with an additional $2.3 billion in capital available in our mortgage funding operations.