Canada Mortgage and Housing Corporation
Broad Association: Government of Canada
Narrow Association: Canada Mortgage and Housing Corporation
Relevant Locations: Canada-wide
Established Year: 1946
Is a company: yes
Is a proper noun: yes
Notes: Insures Canadian mortgage lenders.
- Canadian Mortgage and Housing Corporation
- Canada Mortgage & Housing Corp.
Definition of Canada Mortgage and Housing Corporation
- CMHC is an acronym for the Canada Mortgage and Housing Corporation. This Federally run institution provides banks and lenders with mortgage insurance (which is not the same as life or property insurance). If a borrower defaults on their mortgage loan or there is a foreclosure on the property, CMHC assumes responsibility and reimburses the bank or lender the entire mortgage amount. This insurance is typically required when a borrower has less than 25% equity or down payment and it must be paid in advance (or it can be added to the mortgage). See also "G.E. Capital."
Related Terms and Acronyms
- Central Bank — Definition,
- An institution that manages a nation's monetary policy.
- Bank of Canada (BC, BOC) — Company Est. 1935, Ottawa, Ontario, Canada, Important,
➥ Canada's central bank.
- Canada's central bank.
- Prime Rate — Definition,
- The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
- Ontario Mortgage and Housing Initiative (OMHI) — Acronym, Ontario, Canada, ➥ Affordable housing financing.
- High-ratio Mortgage — Definition, Important,
- A mortgage in which a borrower places a down payment of less than 20% of the purchase price.
- National Housing Act (NHA) — Acronym, Canada, Important,
➥ Canadian law relating to housing standards and building guidelines.
- An Act that consolidates all housing legislation and gives the Canadian federal government a leading role in housing programs.
- Mortgage Life Insurance — Definition, Very Important,
- Insurance that covers the costs of paying off a mortgage if the insured dies or becomes disabled.
- Declining Life Insurance — Definition,
- Life insurance with a decreasing death benefit, often used to insure mortgage debt.
- Mortgage Insurance — Definition, Very Important,
➥ CanEquity offers mortgage insurance.
- A policy covering a mortgagor from which the benefits are intended (a) to pay off the balance due on a mortgage upon the death of the insured, or (b) to meet the payments on a mortgage as they fall due in the case of his death or disability.
- Insurance that protects a lender if a homeowner fails to pay off his or her mortgage.
- Mortgage Rate — Definition, Very Important,
➥ You can compare mortgage rates using this website by clicking 'Rates' above.
- The interest rate on a mortgage loan.
- Conventional Mortgage — Definition, Important,
- A mortgage that is not insured or guaranteed by CMHC or GE Capital.
- Societé Canadienne d'Hypothèques et de Logement (SCHL) — Acronym, Canada, ➥ French acronym for Canada Mortgage and Housing Corporation.
- Qualifying Rate — Definition,
- The mortgage rate that one must qualify for when applying for a variable rate or a term less than 5 years, so that if rates increase, the borrower can continue to make payments.
- GE Capital — Company,
➥ Also offers commercial financing.
- GE Capital is the new CMHC alternative in the Canadian Mortgage Market place. GE Capital like CMHC provides banks/lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure GE Capital assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "CMHC."
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.