IMF urges Ottawa to cut back on mortgage insurance through CMHC
Ottawa should consider phasing out insuring home mortgage insurance through CMHC. This coming from the International Monetary Fund said Wednesday.
The advice is contained in the IMF’s latest economic report card on Canada. The report card projects modest economic growth of 2.25% for the country next year.
Such a recommendation, surprising from an international financial organization, appears to side with Finance Minister Jim Flaherty. He has recently questioned whether the federal government should be in the business of insuring higher-risk mortgages at all.
Some analysts have credited the system for providing much needed confidence in Canada’s housing sector during the 2008-09 crisis. Many believe it was sparked by a crisis in the U.S. mortgage market.
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