Skip to content
Subscriber Only

Canada Housing Agency Caps Mortgage-Securities Guarantees

Canada’s housing agency is rationing the amount of mortgage-backed securities it guarantees, in a move that may lift the cost paid by consumers to buy a home.

Canada Mortgage & Housing Corp. said it will impose a limit of C$350 million ($337 million) this month for each lender on new guarantees, according to a note to financial institutions published Aug. 1 on its website. CMHC said it was facing an “unexpected increase in issuance volumes” that was causing it to approach an C$85-billion ceiling.