Minister Flaherty – Thinks the CMHC is more grand than it was intended to be.

Finance Minister, Minister Jim Flaherty vowed on Friday December 6th, 2013 to take additional measures if a reduction in the amount of government insurance on mortgages is needed. “additional” meaning the added to or on top of the two sets of changes that were made to CMHC policies already,that included a  reduction in maximum amortizations, the initiating of Qualifying rates, the introduction of cap limits on refinances, and the additional premium fee that is currently in discussions that will see a fee charged by the government to CMHC. Speculators believe this may also be the first steps in the beginning of eventually privatizing the CMHC which is currently a Crown Corporation.

This could also be in response to comments made in late November by the International Monetary Fund (IMF) contained in the recommendation section of the IMF’s latest economic report card inwhich the IMF stated that Canada was exposing itself to risk by insuring mortgages  the CMHC  and recommended scaling back the Crown Corporation.

 

 

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