Posts Tagged ‘Canada Mortgage and Housing Corporation’

New Mortgage Lending Changes Impacting Hundreds of Thousands of MH Owners

June 14th, 2017 Comments off

Dodd-Frank. FHFA and the GSEs. Mortgage and lending related “unintended consequences” – or failures to act by federally chartered Enterprises – are common issues south of the U.S. Canadian line.

But our brethren north of the border apparently have their own financing woes for manufactured home owners now too.

Canadian Mortgage Trends (CMT) reports that, “One of the seemingly unintended groups to fall victim to the government’s latest mortgage changes is owners of mobile homes [sic], according to some concerned mortgage brokers who are seeing the effects on their clients.”

Canadian manufactured home professionals, like those in the U.S., prefer the term manufactured home be used on newer, code compliant models.

CMT states that “The issue stems from the new rule that prohibits insured properties from being refinanced, and that most lenders require mobile homes [sic] located in a mobile park [sic] to be insured, regardless of the amount of equity the owner has.”

DustanWoodhouseCanadianMortgageExpertsDailyBusinessNewsMHProNewsThe majority of the 183,000 households living in mobile manufactured homes, through government policy change, have the potential of being locked out of accessing the equity in their homes through traditional bank and credit union channels,” said Dustan Woodhouse, a DLC Mortgage Experts broker based outside of Coquitlam, B.C.

Woodhouse says people are discovering the scale of this issue as those in Canada’s version of mobile or manufactured homes and seek refinances are being told it’s not possible; at least not through major lenders at their best rates.

An RBC spokesperson told CMT that it requires all mobile and manufactured homes to have default insurance, issued by the Canada Mortgage and Housing Corporation (CMHC). That de facto prohibits any of those homes from being refinanced, at the RBC’s better rates.



Image credit, Royal Bank of Canada, RBC., provided under fair use guidelines.


CMHC photo credit, Globe and Mail.

Joe Tomkins, a mortgage broker with DLC Canadian Mortgage Experts in Nanaimo, B.C. said, “A client of mine had to refinance for personal reasons and they needed to get equity out of their home…It had to go to a MIC (mortgage investment corporation), and it was 12% and included a very high fee as well. But that was the only option.”

Joel Olson, a DLC Mortgage Experts mortgage broker in Kamloops, B.C., had clients refinance at 12%, plus they reportedly paid a $4,000 fee because “that was the best and cheapest option of everybody out there.”

Olson added that the restrictions aren’t unique to mobile and manufactured homes, but may  include small condos under 550 square feet, houses on leased land, or housing built using alternative building methods, etc.

To be very fair to a private lender…they realize that the ability for them to resell that home in the case of default is now very small and so their risk increases quite a lot as well,” he noted. “They do have a higher default on mobile homes [sic]…but that’s still a very small number.”


Mortgage Application Credit – Compare Save, posted on the Daily Business News
under fair use guidellines.

“Sure you can buy a new mobile home [sic] in a park today with 5% down, and it can be insured by CMHC,” he said. “You just have to make the decision knowing that if you ever want to refinance, here are your refinance options: 12% interest, x-amount of dollars for a fee.”  ##

(Editor’s note: Canada, we hope you can sort it out much faster than your neighbors to the south have managed so far.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News for MHProNews.

Dakota Nation to get Green Modular Homes

March 24th, 2014 Comments off has learned from, the Canada Mortgage and Housing Corporation has awarded the contract to build seven new modular houses for the Sioux Valley Dakota Nation to Home Hardware in Virden, Manitoba, Canada. Instead of nails and wood, the homes will be structural thermal energy efficient panels (STEEP), materials STEEP Building Systems says is lighter weight, stronger and more durable than other materials. The panels are used for the floor, walls, ceilings and roofs, and cut construction time to frame a house to one day. STEEP qualifies for 51 LEED points (Gold) by the U. S. and Canada Green Building Councils. ##

(Image credit:

First Nation Tribe Seeks more Manufactured Housing

September 25th, 2012 Comments off

NetNewsLedger reports from the northern Ontario, Canada town of Attawakispat on James Bay, the manufactured homes that were brought over the winter ice road have been sited during the summer. A disagreement between Minister of Aboriginal Affairs John Duncan and the Attawakispat First Nation leaders over funding management has led to a continuing problem in replacing 50 donated, aging ATCO construction camp trailers. MHProNews has learned an application to help finance the construction of 30 homes in Attawakispat has been sidetracked because Minister Duncan has refused to approve an agreement between the Canada Mortgage and Housing Corporation.

(Photo credit: NetNewsLedger/Christopher Kat)

Energy Development Driving Growth in Canada

August 30th, 2012 Comments off

Stockhouse tells MHProNews the Canada Mortgage and Housing Corporation (CMHC) says the outlook for average rental apartment vacancies is not expect to change from the second quarter forecast of 2.2% for this year and 2.1% for 2012. Regionally for 2013 the lowest vacancy rates are forecast for Vancouver at 0.9%, Regina at 1.0%, and Calgary and Toronto both at 1.5%. Rental rates are expected to increase in 2013 in Calgary by 4.3%, in Edmonton by 3.8%, and in Vancouver by 3.1%. The strong energy development in Alberta is anticipated to drive the gross domestic product (GDP) in that province to 3.4% this year, and 3.2% in 2013, the best in the nation. Migration into Alberta because of the increased labor demand is the strongest since 1970, forecast to be 57,800 this year and 48,500 expected in 2013.

(Photo credit: Wikipedia)

New $1.5 million modular development for B.C. seniors opened

September 13th, 2011 Comments off

CMHC buildingThe Ministry of Energy and Mines along with the Canada Mortgage and Housing Corporation (CMHC) announced the recent opening of a new, modular affordable housing project.  Located in 100 Mile House is Pioneer Haven, the new $1.5-million affordable seniors housing development provides eight apartments built through modular home construction for seniors and persons with disabilities. “Our Government is investing in affordable housing here in 100 Mile House, to help create jobs and improve the quality of life for those who need it most,” said Cathy McLeod, MP for Kamloops-Thompson-Cariboo, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC). “These initiatives will help seniors living on low income and persons with disabilities in our community access safe and affordable housing that meets their needs.”  Through an amendment to the Canada-British Columbia Affordable Housing Agreement, the federal government contributed over $590,000 to support the construction of Pioneer Haven. The Province of British Columbia provided over $867,000 to this project through the Seniors Rental Housing Initiative (SRH) and provided the land valued at over $29,000.  A new agreement implements B.C.’s allocation of the remaining three years of the $1.9 billion, which amounts to a further $90 million in federal funding to match with $90 million in provincial funding for a total of $180 million for British Columbians in housing need. The Province of British Columbia’s $14-billion capital infrastructure program is creating up to 88,000 jobs, building vital public infrastructure and stimulating local economies across the province.

(File photo credit: Wikimedia Commons)

Canadian housing market: Sound or a bubble set to burst?

August 26th, 2011 Comments off

CMHC buildingCTV reports the debate in Canadian housing circles about the soundness of the housing market. Is there a U.S. style housing bubble?  The signals are mixed, according to experts. Prices in Vancouver look dangerously high, while towns such as Saint John, New Brunswick are quite affordable. Compared to renting, owning a home is now more expensive than it has been in decades. Home prices are rising faster than incomes. Higher home prices has lead to more borrowing. Three years ago, just 1 in 9 mortgage-holders borrowed more than 80% of the value of their homes.  It’s 1 in 6 today. Canada Mortgage and Housing Corporation (CMHC) stepped in when investors became reluctant to lend to banks during the Black Autumn of 2008. CMHC bought tens of billions of dollars worth of mortgages from financial institutions. That move supported the Canadian housing market. Finance Minister Jim Flaherty then reigned in 40 and 35 year mortgages, while tightening financing rules. CMHC guarantees and lending changes moved the home ownership rate from just above 60% to now about 70%. This compares to about a 50% rate of home ownership in Germany or Switzerland and the U.S. rate now at 66% and dropping, down from the previous 69% ownership rate. In just six years, CMHC insurance business has doubled, to more than $500 billion worth of mortgages. About $45 billion is with the riskiest group—buyers with less than 10% equity. If there is a Canadian housing bubble, the government backed CMHC – meaning Canadian taxpayers – are left holding the bag. Thus the debate in the great white north about how to support housing while avoiding the meltdown that has occurred in the U.S..

(Photo credit: Boomerang Financial)

Canadian Housing Mortgage Giant Scrutinized

July 26th, 2011 Comments off

CMHC_Canada_Mortgage_Housing_Corporation_Logo_posted at MHMSM.comThe Vancouver Sun reports the role of the Canada Mortgage and Housing Corporation (CMHC) has been reviewed by the CD Howe Institute, Fraser Institute and the Macdonald-Laurier Institute.   Each provided recommendations, including privatization.  Canadian taxpayers are on the hook for $500 billion to lenders.  Some fear that Canadian government owned CMHC could be headed for a housing bubble burst similar to their southern neighbor. The 2008 U.S. mortgage/housing collapse resulted in 20% foreclosures and some $6 trillion in losses.  Experts suggest Canada should create a mortgage insurance program subsidiary for the CMHC.  They also suggest bringing the CMHC under the Office of the Superintendent of Financial Institutions (OSFI) control for greater transparency.

(graphic: CMHC logo)