Genworth MI Canada, the nation's second largest mortgage insurer, recently announced plans to take advantage of government constraints on the Canada Mortgage and Housing Corporation, its Crown corporation rival.
According to The Globe and Mail, executives at the mortgage insurer have made it clear they view the situation as a new business opportunity, as Ottawa mulls loosening restrictions on the CMHC.
“Given economic conditions and concerns around personal leverage/housing in Canada, we would be surprised to see the government increase CMHC’s limit in the near term,” Jason Bilodeau, analyst at TD Securities, recently wrote in a note to clients.
Meanwhile, Finance Minister Jim Flaherty has not made it clear whether he has plans to increase the limit, but has stated that he wants CMHC to operate within those means for the time being, the newspaper states.
In addition to mortgage news, Canada's housing industry is also seeing fluctuations in prices throughout the nation. According to the CBC News, price increases in Toronto, Montreal and Vancouver – three of the country's major housing markets – pushed the Canadian Real Estate Association's home price index to new heights for January.