Ottawa: Canada Mortgage and Housing Corporation (CMHC) generated strong financial results for the quarter ending June 30, 2021, as indicated in the Q2 2021 quarterly financial report released last week..
Pre-tax income increased $253 million for the six months ended June 30, 2021 as insurance claims expense decreased $355 million or 122% as a result of the continued favourable economic conditions compared to the same period last year during the onset of COVID-19.
Loans that were in deferral did not materialize into paid claims as originally expected, and the arrears rate has remained low. CMHC capital position remains strong with approximately $3 billion in excess capital above our operating targets.
Additional quarterly report highlights for three-month period ending June 30, 2021 A statement issued by CMHC said: “We insured 49,105 multiunit residential units in Q2, an increase of 13,353 units (37%) over Q1 of this year and up from 4,906 units (112%) for the same period in 2020 driven by increases in new construction and purchases.
• Currently at 45.6%, our homeowner insurance portfolio has experienced a consistent increase in average homeowner equity — up from 42.6% at the end of Q1, and from 40.7% one year ago.
• Insurance-in-force decreased by $13 billion dollars from the end of the previous quarter.
• Arrears overall have remained stable at 0.31%. CMHC has also published business supplements on its Mortgage Insurance, Mortgage Funding and Covered Bonds activities, providing additional depth and insights on each. Progress on the National Housing Strategy is reported quarterly online.
CMHC supports the housing market and financial system stability by providing support for Canadians in housing need, and by offering housing research and advice to all levels of Canadian government, consumers and the housing industry. For more information, interested parties can follow CMHC on social media: Twitter, YouTube, LinkedIn, Facebook and Instagram.
