- Joined
- Dec 16, 2008
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- 1,005
CMHC (Canadian Mortgage and Housing Corporation) has been long approaching its $600 billion cap--something investors have been paying attention to for the past couple of years. As of the first quarter of 2013, CMHC already had over $546 billion, only $54 billion away from their statutory limit of mortgages they are allowed to insure. As on August 1, 2013, CMHC had already burned through $66 billion of their allotted $85 billion for this year. CMHC is really trying to delay this moment of truth, when the market learns it only exists thanks to an artificial government creation, there is going to be widespread panic. But what CMHC has quietly done, is limited the amount of mortgages major banks are allowed to insure, to $350 million per month (which works out to $4.2 billion per year). The government keeps shrinking and downsizing the amount of mortgages they will insure, in tandem with their increasing proximity to the upcoming final insurable threshold. You can tell it is getting bad when CMHC goes from insuring set annual amounts, to extremely limited monthly amounts, as we approach the $600 billion total CMHC insured cap.