Archived - Department of Finance Canada Launches Consultations on Lender Risk Sharing for Government-Backed Insured Mortgages

October 21, 2016 – Ottawa, Ontario – Department of Finance Canada

The Government of Canada is committed to supporting a healthy, competitive and stable housing market and economy for all Canadians. In this context, Finance Minister Bill Morneau announced new measures on October 3 that were designed to reinforce the Canadian housing market, help protect the long-term financial security of borrowers and all Canadians, and improve tax fairness for Canadian homeowners.

In addition, the Government of Canada is taking a long-term view of the way the mortgage market functions by reviewing the distribution of risk in Canada’s housing finance system. As the economic environment continues to evolve, a system that supports the appropriate assessment and pricing of risks by all parties could serve to further strengthen the stability and resiliency of the housing sector, so that it continues to meet the needs of Canadians and support a strong economy.

Today, the Department of Finance Canada launched consultations to help determine whether modifying the distribution of risk in the housing finance system, by requiring mortgage lenders to manage a modest portion of loan losses on insured mortgages that default, would enhance the current system. The consultations are also seeking input on the key elements that should be considered in the development of a lender risk sharing policy with a view to better protect taxpayers by ensuring that the distribution of risk in the housing finance system is appropriately balanced.

Individuals or organizations interested in submitting their views are invited to review the consultation document at the link below.

Written comments should be forwarded by February 28, 2017 to or to:

Capital Markets Division
Financial Sector Policy Branch
Department of Finance Canada
James Michael Flaherty Building
90 Elgin Street
Ottawa, Canada
K1A 0G5

Annie Donolo
Press Secretary
Office of the Minister of Finance

Media Relations
Department of Finance Canada

Page details

Date modified: