The Canadian government-owned Canada Mortgage & Housing Corp. (CMHC), which guarantees investors in securitized pools of mortgages receive principle and interest payments if there’s a default, is capping the amount of new loans it insures in August, a move that will raise rates 15 to 45 basis points, the news service Bloomberg reported.

The $337 million per-lender cap by CMHC in August is an attempt by the agency, which has insured $64.4 billion so far this year, to curb it from approaching its $81.6 billion year-end limit too fast.

Source: Bloomberg

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