The Canada Mortgage and Housing Corporation or the CMHC was set up in the year 1946 so that people returning from the Second World War could have a home to reside. This was the first motive behind its establishment. Over the years, it took up other important roles gaining prominence among the Crown Corporation in the country.
The Canada Mortgage And Housing Corporation or the CMHC, a crown corporation, has been entrusted with the responsibility of ensuring that mortgage loans of low cost are made available to the people of Canada. The CMHC extends insurance to the creditors, in the event of a default in payments made by the prospective home owners(home buyers).
The agency (CMHC) is looked after (maintained) by the Minister of Labor and Housing.
Reasons for its incorporation:
Home for War veterans:
The CMHC or the Canada Mortgage and Housing Corporation was established in the year 1946 for the people(veterans) who had returned from World War II and needed a house to dwell. During that period, there was a policy, which stated that every Canadian should possess their own houses.
The agency was also entrusted with another task during that period. The agency was given the responsibility of looking after the funding of housing projects as well as managing them judiciously. In the year 1954, the National Housing Act was altered. Owing to the amendment, the role of the Federal Government in financing projects related to housing ceased. Instead the banks were given the responsibility of mortgage financing.
Ranking second pertaining to revenues the CMHC or the Canada Mortgage and Housing Corporation, had a revenue of USD$4.6 billion in the year 2004.
As far as assets are concerned it ranks first with approximately USD$26 billion(holdings).
Financial agency of Federal Government in Canada:
There are times when the CMHC serves as a financial agent for the Federal Government of Canada.
Role of Canada Mortgage and Housing Corporation in the Private Sector:
In matters related to planning, designing as well as constructing houses, the CMHC guides as well as assists the private sector in Canada. Canada Mortgage and Housing Corporation is responsible for providing loans with middle as well as low interest rates for developing several housing projects in the urban areas of Canada.
Last Updated on : 24th August 2013