Flaherty: privatized CMHC doable

"Is it inevitable that the government, the people of Canada, will always own the residential mortgage insurance company?" Flaherty told the Senate banking committee “The answer to that is no, it's not inevitable that that will be forever owned by the people of Canada because it's not an essential service.”
The hint of sorts follows on the heels of another dropped at the tail end of April.
"I think there is a role to regulate but whether we, the Canadian people, have to be the owners and shareholders of a financial institution to do this is a question,” Flaherty told reporters. “Over time, I don't think it's essential that a government financial institution provide mortgage insurance in Canada.”
Wednesday’s comments amplify speculation that the Conservatives are intent upon eventually creating a CMHC that operates entirely without government backing. Flaherty is also echoing the suggestions of economists from the right-leaning CD Howe Institute, long-time advocates the government abandon its role as CMHC back-stop.
That kind of step back would end the Crown corp’s six-decades-long history in that position at the same time, charge some brokers, threatens the ability of qualified Canadians – especially first-time buyers -- to get into their own homes.

To the extent that move makes it harder for Canadians to buy, say analysts, is the extent to which landlords will benefit from an expansion of the rental market.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release


Do you invest in commercial properties?