CMHC Releases Third Quarter Results

OTTAWA, ONTARIO--(Marketwire - Nov. 29, 2012) - Canada Mortgage and Housing Corporation (CMHC) released today its results for the third quarter of 2012.

For the nine months ended 30 September 2012, CMHC's net income (after taxes) was $1.16 billion, which is consistent with the net income recognized during the same period in 2011. Over the last decade, CMHC has contributed more than $17 billion to reducing the Government's accumulated deficit through both its net income and income taxes. Of the $17 billion, CMHC's insurance business has contributed more than $14 billion.

CMHC continues to manage within its Insurance-in-Force limits. At the end of the third quarter of 2012, CMHC's total insurance-in-force was essentially unchanged from the second quarter of 2012.

Total insurance-in-force has increased less than 2% to $575.8 billion compared to $566.5 billion at year end 2011 as mortgage repayments continue to offset increases in the Corporation's insurance-in-force that result from providing mortgage loan insurance to qualified homebuyers.

On a year-to-date basis, homeowner insurance volumes have remained relatively stable compared to last year. CMHC's insured loan volumes are influenced by the economy, housing markets, competitive pressures and the regulatory environment. In the three months ended 30 September 2012, insured home purchase volumes declined approximately 6% while insured refinance volumes were 22% lower compared to the same period in 2011.

On a year-to-date basis, Losses on Claims have remained stable and are 5% below plan. The overall CMHC Arrears rate is 0.34% and has been improving year-to-date. Losses on Claims were $19 million (12%) lower in the third quarter of 2012 compared to the same quarter in 2011 as the number of claims received were down approximately 9%.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable housing solutions that will continue to create vibrant and healthy communities and cities across the country.

For additional highlights please see attached backgrounder.

This release is also available at CMHC.ca/Newsroom. For more information, visit www.cmhc.ca or call 1-800-668-2642.

Follow CMHC on Twitter @CMHC_CA

BACKGROUNDER

Key Statistics

• CMHC invested $509 million on behalf of the Government of Canada on Housing Programs for the three-months ended 30 September 2012 bringing to $1.68 billion the amount invested on a year-to-date basis to improve the living conditions of Canadians in need by improving access to affordable, sound, suitable and sustainable housing.

• CMHC continues to be the only mortgage loan insurer for large multi-unit residential properties including nursing and retirement homes. The Corporation's support for these forms of housing is important to the supply and maintenance of a range of housing options in Canada.

• CMHC is the primary insurer for housing in rural areas and smaller Canadian markets. The share of CMHC's total homeowner and rental business to address less-served markets and/or to support specific government priorities was close to 46% in the first nine months of 2012.

• Based on updated property values the majority of CMHC-insured mortgages currently have loan-to-value ratios of 80% or less. The average equity in CMHC's insured homeowner portfolio remained stable at 45% at 30 September 2012.

• CMHC analysis shows that some 33% of CMHC-insured high ratio borrowers are consistently ahead of their scheduled amortization by at least one mortgage payment per year. The figure rises to 64% for those who are ahead of their payment schedule by any amount.

• As at 30 September 2012, the average outstanding loan amount for homeowners who took out loans above 80% loan-to-value at origination was $176,838.

• The average credit score in CMHC's high-ratio insured homeowner portfolio at 30 September 2012 is 726. The high average credit score demonstrates a strong ability among homebuyers with CMHC-insured mortgages to manage their debts.

• The average amortization period at the time of mortgage approval for all CMHC-insured homeowner and multi-unit residential loans has remained stable at 25 years as at 30 September 2012.

• CMHC follows OSFI guidelines in setting capital levels. As at 30 September 2012 CMHC's capital levels are more than twice the minimum required by OSFI.