CMHC expanding insured mortgage purchase program to $150B, up from $50B
Real estate for sale signs are shown in Oakville, Ont. on Dec.1, 2018. (Richard Buchan / THE CANADIAN PRESS)
The Canadian Press
Published Thursday, March 26, 2020 10:22AM EDT
OTTAWA - Canada Mortgage and Housing Corp. is expanding its insured mortgage purchase program to $150 billion as part of its response to the COVID-19 crisis.
The move to help bolster the financial system is an increase from an initial plan for $50 billion announced March 16.
The expansion is part of the emergency measures passed by the government to deal with the fallout of the novel coronavirus and the steps taken to slow its spread.
CMHC has said the insured mortgage pools already carry government backing, so there is no additional risk to taxpayers.
Ottawa had a similar program to buy insured mortgages during the 2008-09 financial crisis.
In buying the insured mortgages, CMHC helps provide funding for the banks that they can then use for other loans to help businesses and other borrowers.
This report by The Canadian Press was first published March 26, 2020.