Summary
-
The Canadian mortgage market has undergone a radical transformation over the past 50 years. Prior to 1954, banks were not allowed extending mortgage loans. By August 2009, they held roughly 49% of all residential mortgages.
-
Historically, the 5-year fixed-rate loan has been the workhorse of the Canadian mortgage market. This segment of the marketplace, too, has changed significantly over the years.
-
In Canada, mortgage insurance plays a major role in the system. CMHC is the dominant provider of such insurance in the country.
-
In July 2008, the Government of Canada announced adjustments to the rules for government-guaranteed mortgages in order to reduce the risk of a U.S.-style housing bubble developing this side of the border.
