Government of Canada Announces Additional Measures to Support Continued Lending to Canadian Consumers and Businesses
“These are extraordinary times and we are taking extraordinary measures. As a result of this measure, banks and lenders will have more liquidity—which, in turn, will enable them to work on a case by case basis with Canadian businesses and individuals who face hardship at this time. A co-ordinated approach is critical for making sure our economy remains strong and stable. The government will do whatever it takes to support Canadians and we are prepared to take further action as necessary to meet the challenges ahead.”
- Bill Morneau, Minister of Finance
Federal statutes require federally regulated lenders to obtain mortgage default insurance (“mortgage insurance”) for homebuyers who make a down payment of less than 20 per cent of the property purchase price, known as “high loan-to-value” or “high-ratio” insurance. Lenders also have the option to purchase mortgage insurance for homebuyers who make a down payment of at least 20 per cent of the property purchase price, known as “low-ratio” insurance because the loan amounts are generally low in relation to the value of the home.
Under the IMPP, CMHC will purchase insured mortgages in the form of National Housing Act Mortgage-Backed Securities—a securitization product that pools insured mortgages for resale as marketable securities.
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- Government of Canada Announces Further Measures to Support Continued Lending to Canadian Consumers and Businesses
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Media may contact:
Office of the Minister of Finance
Department of Finance Canada
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