Posted in Finance, Accounting and Economics Terms, Total Reads: 277
Definition: Canada Mortgage and Housing Corporation - CMHC
Canada Mortgage And Housing Corporation is a national housing agency under government of Canada. Its’ main motto is to help the citizens of the country get variety of affordable housing options. Besides that, it also keeps looking and analyses the housing and real estate trends across the globe.
The analysis helps the buyers, businessmen and even the government. Along with that it also provides mortgage loan insurance which provides insurance to the lenders against borrower when he defaults. Such insurance are provided at very low cost rates.
For example, a person has given his house on mortgage to other individual. Due to some reasons the borrower is not able to pay the interest. If the mortgage was insured, CMHC would pay to the lender. Almost one third of the population of Canada seeks help from CMHC in any form. It even helps other professional, investors, financiers know about housing market in Canada.