CMHC revises mortgage program – The Government of Canada is expanding its revised Insured Mortgage Purchase Program (IMPP) to further bolster the financial system and the Canadian economy. This expansion is part of a suite of measures passed in the Emergency Response Act.
As a result of additional authorities granted by the Minister of Finance, the government stands ready to purchase up to $150 billion of insured mortgage pools through CMHC, an increase of $100 billion from the $50 billion announced on March 16, 2020. This action will expand the stable funding available to banks and mortgage lenders in order to ensure continued lending to Canadian consumers and businesses.
Details for the Purchase Operations are available online. In addition to the access to liquidity provided through the IMPP, CMHC is also ready to expand the issuance of Canada Mortgage Bonds, which is part of our standard mortgage-funding suite of products, to a total annual issuance amount of up to $60 billion. This additional issuance would depend on market conditions and investor demand.
These supports to the financial sector build on previous measures announced by the Government of Canada to provide significant and effective action to support Canadian individuals and businesses facing financial hardship as a result of the economic impacts of the global COVID-19 outbreak.