OTTAWA, ON, Nov. 29, 2022 /CNW/ - Inflation and other economic conditions including higher interest rates continue to impact financial results for Canada Mortgage and Housing Corporation (CMHC) in the third quarter, as indicated in the Q3 2022 report released today.
The impacts of inflation and movements in interest rates are seen through declines in our investment portfolio and actuarial gains on our defined benefit plans. Unit volumes have decreased from the previous quarter for transactional homeowner and multi-unit products, as the market continues to adjust to higher interest rates.
"Despite some economic volatility, mortgage arrears remain low, supported by continued low unemployment," said Michel Tremblay, CMHC's Chief Financial Officer and Senior Vice-President, Corporate Services. "We remain in a stable position to withstand further interest rate volatility and will continue to monitor the impacts of evolving market conditions on our business."
Additional highlights for the three-month period ending September 30, 2022:
- Paid claims remain low for all products, and the national mortgage arrears rate decreased slightly to 0.24% this quarter, from 0.25% in Q2.
- Our net income for Q3 was $433 million, up from $414 million in the same quarter last year.
- Our total revenues and government funding increased by $57 million (5%) from the same quarter last year mainly due to a $16 million increase in premiums and fees earned due to higher volumes from prior years being recognized in the Mortgage Insurance Activity as a result of reversing our underwriting criteria in July 2021, as well as other factors.
- Our total expenses increased by $30 million (6%) from the same quarter last year mainly due to a $22 million increase in insurance claims expense. While insurance claims expense in the quarter continues to be low combined with a lower provision for claims, there was a larger decrease in the same quarter last year when the provision for claims was reduced due to favourable conditions as the economy recovered from COVID-19.
Q3 Highlights |
Three months ended 30 |
Net income ($M) |
433 |
Government funding ($M) |
454 |
New securities guaranteed ($B) |
50 |
Insured volumes (units): Transactional homeowner insurance |
17,383 |
Insured volumes (units): Portfolio insurance |
14,691 |
Insured volumes (units): Multi-unit residential insurance |
43,457 |
Capital management |
As at 30 September |
Total Mortgage Insurance capital ($B) |
9.8 |
Mortgage Insurance capital available to minimum capital required (%) |
183 % |
Total Mortgage Funding capital available ($B) |
1.3 |
Mortgage Funding capital available to capital required (%) |
147 % |
Insurance-in-force ($B) |
397 |
Guarantees-in-force ($B) |
463 |
Canadian residential mortgages with CMHC insurance coverage (%) |
19.4 % |
National mortgage arrears rate (%) |
0.24 % |
The full Quarterly Financial Report is available online.
We continue to deliver the National Housing Strategy (NHS), a 10-year initiative with investments of more than $72 billion giving more Canadians a place to call home. The NHS covers the entire housing continuum, from shelters and transitional housing to community and affordable housing, to market rental and homeownership. We report progress on the achievement of NHS targets quarterly at www.placetocallhome.ca
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 orders of Canadian government, consumers and the housing industry. For more information, follow us on Twitter, YouTube, LinkedIn, Facebook and Instagram.
SOURCE Canada Mortgage and Housing Corporation
CMHC Media Relations, [email protected]
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