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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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76% - Very Often

Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation
Is a company established in 1946.

Website:http://www.cmhc-schl.gc.ca
Acronyms &
abbreviations:
CMHC
Relevant locations:Canada-wide
Year established:1946
Notes:Insures Canadian mortgage lenders.
Filed Under: companies-associations, financial-banking, government, mortgages
Tags: approved lender, housing, insurance, legislation, loan administration, loan underwriting, mortgage, mortgage lender, statistics
 
Broadly associated with: [Government of Canada]

Definition of Canada Mortgage and Housing Corporation (CMHC)

Canada Mortgage and Housing Corporation (CMHC)
1. 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:

  • Bank of Canada (BC, BOC)   Canada's central bank.
      ➥  Canada's central bank.
  • conventional mortgage   A mortgage that is not insured or guaranteed by CMHC or GE Capital.
  • high-ratio mortgage   A mortgage in which a borrower places a down payment of less than 20% of the purchase price.
  • mortgage (mtg)   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.
  • mortgage insurance   Insurance that protects a lender if a homeowner fails to pay off his or her mortgage.
      ➥  CanEquity offers mortgage insurance.
  • mortgage life insurance   Insurance that covers the costs of paying off a mortgage if the insured dies or becomes disabled.
  • mortgage rate   The interest rate on a mortgage loan.
      ➥  You can compare mortgage rates using this website by clicking 'Rates' above.
  • National Housing Act (NHA)   An Act that consolidates all housing legislation and gives the Canadian federal government a leading role in housing programs.
      ➥  Canadian law relating to housing standards and building guidelines.
  • prime rate   The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
  • qualifying rate   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.

More Related Terms and Acronyms

  • central bankDefinition
  • declining life insuranceDefinition
  • GE CapitalCompany, Definition
  • Ontario Mortgage and Housing Initiative (OMHI) — Ontario, Canada, Acronym
  • Societé Canadienne d'Hypothèques et de Logement (SCHL) — Canada, Acronym

Broad and Narrow Associations

[Government of Canada]
  • Registered Retirement Savings Plan (RRSP)Canada, Very Important   A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
      ➥  Tax deferred investment contribution used to reduce income tax.
  • Canada Mortgage Bonds (CMB) — Est. 2001, Canada, Very Important   A fully guaranteed fixed interest rate income investment backed by CMHC (a crown corporation of the Government of Canada).
      ➥  Issued by the Canada Housing Trust (CHT).
  • Registered Education Savings Plan (RESP)Canada, Very Important   An investment vehicle used for a child's post-secondary education.
      ➥  RESPs are offered by most financial institutions in Canada.
  • Home Buyers' Plan (HBP)Canada, Very Important   A way for a homebuyer to use part of his or her RRSP as a down payment on a mortgage.
      ➥  Government assistance for first-time homebuyers.
  • Office of the Superintendent of Financial Institutions (OSFI) — Company, Canada, Important
[Canada Mortgage and Housing Corporation]
  • Canada Mortgage Bonds (CMB) — Est. 2001, Canada, Very Important   A fully guaranteed fixed interest rate income investment backed by CMHC (a crown corporation of the Government of Canada).
      ➥  Issued by the Canada Housing Trust (CHT).
  • National Housing Act (NHA) — Est. 1944, Canada, Important   An Act that consolidates all housing legislation and gives the Canadian federal government a leading role in housing programs.
      ➥  Canadian law relating to housing standards and building guidelines.
  • Canada Housing Trust (CHT) — Canada
  • Canadian Home Inspectors and Building Officials (CHIBO) — Canada, Low Relevance
      ➥  CMHC national research initiative.

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