CMHC considers sharing risk with banks

The CEO of the CMHC is saying that although some Canadian house prices are certainly too high, they aren’t worried about a market collapse at this point.

One option they are considering as a way to help cool an overheated market is sharing mortgage loan risk with the banks that are handing out loans.

The mortgage insurance that CMHC and its two competitors sell repays banks when consumers default on their mortgages. At the moment it makes the banks whole. The OECD has called for changes to the system to ensure that lenders take on more of the risk. In other countries with mortgage insurance, the product tends to only cover 10 to 30 per cent of the losses. In his speech, Mr. Siddall said that CMHC is evaluating “risk-sharing with lenders to further confront moral hazard” and is advising the government about its thoughts.

Read the full article here.

Hat-tip to southseacompany.

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@Just Jack,
Nothing is wrong yet. CMHC is raking in huge sums of money for now…. but they know how much risk they are carrying and they are getting nervous.

Heard Herd selling

Again yet another day with cmhc, housing etc in the news, overpriced, no bubble, bubble, worry, don’t worry. This is in the news every single damn day, if there wasn’t an issue you wouldn’t here about the this crap , it’s quite obvious that the writing has been all over the walls, the floors and ceilings for several years, ain’t Nothn going hit the fan until after the election, theyare releasing all these warnings, only to cover their asses once it gets ugly ie after the election. Next year BEWARE

Best place on meth


Looks like the blue-clad locust at the 3:00 mark didn’t get an iPhone.

“You people ever heard of soap?”

Son of Ponzi

#25 VMD
Thanks for all the investigative work.
This is great information that most people would not be aware of.


Heavy HAM buying in West Van again today.
4/6 SFH
Can you read Garth?


Further on the 5 tax sales on Scratchley Cres.
All 5 were advertised on craigslist in July 2014
“5 BRAND NEW LUXURY Single Houses OPEN … – Craigslist
Jul 5, 2014 – 3411, 3431, 3451, 3471, 3491 Scratchley Cres in Central Richmond. OPEN HOUSE every Saturday and Sunday afternoon from 2-4pm.”

They were also marketed in various Chinese RE sites on Aug 22, 2014. This is the sales pitch (in Chinese)”This property is Top Choice to either live in yourself or hold for appreciation. This opportunity will not last. If you want to buy better act fast! Better yet, buy all 5 with your relatives and friends to make great neighbors”


@13 Re: the tax sales in Richmond
Here is the link (pg 6)

Here is what the tax sales on Scratchley Cres looked like on Google Maps in June 2012

Note sign on lawn “For Sale: 8 Luxurious Family Homes”

Bull! Bull! Bull!

China’s IPhone 6 Craving Leads to Fistfight in Connecticut

HAM has a world wide impact that crosses all purchase categories


New Listings 242
Price Changes 107
Sold Listings 162


Quotes from the irish property bubble…

Son of Ponzi

CMCH and banks sharing risk?
That’s like two junkies sharing needles.

Son of Ponzi

page 6, Richmond Review, Sep 19, 2014


forgive me for making a simple comparison. but, when home prices are rising and those that have homes are enjoying the great expansion in their assets, to the point of re-financing continuously to extract equity to Live the Life… we don’t see any call for SHARING. Y’know, i’ve got mine, and f@ck you, won’t be seeing you in Cabo or Mazatlan renter boy. however, now when prices stall, and reversal of fortune looms on the horizon… well, do we Hear about SHARING of risk amongst the heavily indebted, and a rejigging amongst lending institutions to mitigate their profligate lending ways? of course we do… The ship is going down, and only so many life jackets.. but it won’t stop them from making a deal to cut up the lifejackets and make more, of dubious and poor quality… that’s the way… Read more »


@13 – Link please!?!

So basically the idea is to buy and then get money back with a nice rate of interest (taxable??) when the property tax is paid after the sale? If that’s the case, should you just offer higher and earn more interest cuz you aren’t expected to actually take possession of the property?


Oh wait…woops…I guess that was a tad racists…I mean generalizing and making up stuff based on one line in a news story…

I’m sorry, I should replace India with China, and imply it is the mainland Chinese, maybe add in words like filthy, locust, etc. That will make it all ok! It is not racist if it is about mainland Chinese, even if everything is purely conjecture with no backing of facts or anything…just blind hatred will do!


Risk your life visiting hospitals, especially Surrey ones.

Nightmare bacteria resistent to even anti-biotics of last resort are being brought back to Canada from India. What this article didn’t say is that most of the carriers likely aren’t visiting India for work. Most likely they aer parasites who never paid any taxes in Canada and are now sucking the generous Canadians welfare and health system dry. This is so deplorable and need to stop now!

Bull! Bull! Bull!

iphone 6 for sale!

support your friendly neighborhood flipper!

Son of Ponzi

City of Richmond Tax Sale
About 150 properties for Sale.
6 properties on Scratchley Cres.
Someone must be getting burnt big time here.

Just Jack

“If it ain’t broke don’t fix it”

Obviously something is going wrong with CMHC. I would suspect that it is similar to what happened to Fannie Mae. There is more money going out of CMHC that is coming in.

Many Franks

…and Rob McLister on CMHC risk premiums:

With lenders passing those added costs to consumers, Canadians would immediately pay more for mortgages.

The unquestioned assumption is, of course, that risk premiums would drive house prices *up*, not *down*.


Low interest rates in Canada…forever! Yeah, even after Flaherty and Carney fixed everything, it looks like Canada *still* can’t survive without permanently low interest rates….due to structural changes. 😉 By “structural changes” I guess they mean the Government’s policy of replacing manufacturing jobs with condo construction jobs. 😀 Bank of Canada sees neutral interest rate one and a half points lower:–business.html “OTTAWA (Reuters) – Interest rates may have to be about 1-1/2 percentage points lower than they used to be historically to enable the Canadian economy to operate at full capacity, the Bank of Canada said on Monday in a major policy pronouncement. The central bank estimated that the neutral rate of interest, at which the economy can work at full capacity with stable inflation, is 3 to 4 percent, down from 4-1/2 to 5-1/2 percent in the mid-2000s.… Read more »

Many Franks

I missed a follow-up article on the Bates House fire in Strathcona a while back. The relevant bits: At the time of the fire the 1894 home, which was not under heritage protection, was in the process of being sold, but the sale was not completed until about a week after. It is believed one developer now owns both lots, according to some sources. […] Vancouver police now are leading a suspicious-fire investigation, after collaborating with fire department investigators. According to sources familiar with the investigations, it is believed the Aug. 2 fire was an arson, but police and fire department spokespeople told The Province they can’t confirm this or comment on details of the investigation. […] “In cases involving heritage homes, a key aspect of the investigation will be to confirm or discount whether the property would be worth… Read more »

Son of Ponzi
Ford Prefect

#3, southseacompany, #6, Crabman: “…no bubble”

One of my favourite quotes: “it is never officially confirmed until it is officially denied”.