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The government-backed Canada Mortgage and Housing Corp. is raising its prices for home mortgage insurance.
The government-backed Canada Mortgage and Housing Corp. is raising its prices for home mortgage insurance.
(Ryan McVay/©PHOTODISC)

CMHC’s capital was soaring even before price hike

Canada Mortgage and Housing Corp. says it needs to raise prices for mortgage insurance to reflect higher capital targets – even though its stockpile of capital is already growing quickly under the old prices. That suggests there is more at play with this move.

The public line for the price increases announced Friday is that they “reflect higher capital targets.” That’s a good thing because it reduces the exposure of taxpayers, who own CMHC, to any losses at the insurer.