OTTAWA — Canada Mortgage and Housing Corporation (CMHC) today released its 2013 Annual Report, focusing on how the Corporation contributes to market efficiency, a sound and stable housing finance system for Canada, increased housing quality and sustainability, while continuing to deliver federal investments in assisted housing.

“CMHC’s 2013 Annual Report details how CMHC’s mortgage loan insurance and securitization activities have promoted the stability of the housing market and the financial system,” said Evan Siddall, President and Chief Executive Officer of CMHC. “The quality of the loans in our insured portfolio underscores our ongoing commitment to robust risk management practices that help support market discipline in mortgage lending, while minimizing taxpayer exposure to the housing sector.”

In 2013, the mortgage loan insurance and securitization activities accounted for $1.7 billion of the Corporation’s net income. Over the past 10 years, CMHC has contributed $18 billion toward improving the government’s fiscal position.

CMHC’s strong underwriting practices and sound mortgage loan insurance portfolio are reflected in the 2013 results. Total insurance-in-force, which represents the aggregate exposure of the mortgage loan insurance activity, stood at $557 billion as at December 31, 2013, down approximately $9 billion from the beginning of the year.

Most borrowers with homeowner loans have high credit scores, and the average borrower equity in CMHC’s insurance portfolio has remained stable at 45%, the same as last year. Other key figures show mortgage loan insurance claims paid during the year were $436 million, a $96 million or 18.0% decrease from last year. In addition, the arrears rate of 0.34% continued its downward trend, a 0.01 point decrease compared to 2012.

CMHC follows risk management practices as set out by the Office of the Superintendent of Financial Institutions (OSFI), with CMHC maintaining more than twice the minimum capital required by OSFI for its mortgage loan insurance activities.

Another cornerstone of Canada’s stable financial system in 2013 was CMHC’s $123 billion in securities guaranteed through its securitization programs, which helped both small and large lenders access funds for residential mortgage lending, thereby promoting competition in the mortgage market.

The federal government, through CMHC, also provided investments of some $2 billion for housing in 2013, including $1.7 billion in federal funding in support of close to 600,000 households living in existing social housing, including Aboriginal peoples both on and off reserve, and approximately $250 million in new affordable housing.

From April 2011 to the end of December 2013, federal funding delivered under the Investment in Affordable Housing totalled more than $635 million, and since the inception of the Investment in Affordable Housing Framework more than 177,544 households are no longer in housing need.

CMHC provided objective housing research and advice to Canadian governments, consumers and the housing industry. CMHC’s 2013 Annual Report, entitled “Experience that Matters” is available online at or by calling 1-800-668-26421-800-668-2642 .

As Canada’s national housing agency, CMHC draws on over 67 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable housing solutions that will continue to create vibrant and healthy communities and cities across the country.

Follow CMHC on Twitter @CMHC_ca

Annual Report Highlights — CMHC in 2013

Financial Highlights
Total Assets ($M) 270,051
Total Liabilities ($M) 254,213
Total Equity ($M) 15,838
Net Income ($M) 1,829
Assisted Housing
Amount provided by the Federal government through CMHC for housing programs in 2013 ($M) 2,071
Aboriginal Housing
Number of new units committed on-reserve 546
Number of units renovated on-reserve 1,068
Per cent of housing programs and services delivered by First Nations or Aboriginal organizations 90
Mortgage Loan Insurance  
Number of units insured 343,773
Insurance-in-force ($B)  557
Average equity in CMHC’s insured homeowner portfolio (per cent) 45
Average credit score for CMHC’s transactional homeowner loans approved in 2013 741
Average outstanding loan amount per household ($) 140,781
Total guarantees-in-force ($B) 398
Annual securities guaranteed ($B)




Have something to say? Share your thoughts with us in the comments below.