Rallying together for housing: CMHC 2023 Annual Report

Ottawa, May 6, 2024

Canada Mortgage and Housing Corporation (CMHC) today released its 2023 Annual Report demonstrating that while it was a challenging year for housing, CMHC continues to be a company Canadians can count on as we continue to rally with our partners to resolve housing challenges.

In 2023, we saw an unprecedented demand for our multi-unit mortgage loan insurance, and we stepped up to meet this demand. We also delivered expanded funding for purpose-built rentals through Canada Mortgage Bonds, guaranteeing an additional $5 billion after the Government of Canada raised the annual limit for Canada Mortgage Bonds from $40 billion to up to $60 billion. This will help to build up to 30,000 more rental apartments per year, which may further increase the growth in our multi-unit volumes helping boost supply, improve vacancy rates and ultimately make renting more affordable for Canadians.

We continued to deliver on federal government priorities for Canadians under the National Housing Strategy (NHS), exceeding targets despite very challenging economic conditions. For example,153,708 new, repaired or assisted units are affordable to those in core housing need, surpassing the target of 120,000. In 2023, the number of units new, repaired or assisted by CMHC programs reached 494,319, surpassing our target of 350,000. This significant achievement was largely due to the success of the Affordable Housing Fund (AHF), including several large agreements with provinces and municipalities to repair units, and strong uptake of our multi-unit mortgage loan insurance product, MLI Select.

Quotes:

“Canada’s housing challenges are serious, complex and urgent, but they are solvable. I am optimistic that our country is united in facing them with strength and resolve. CMHC is proud to be at the heart of this effort through our commercial, products, the housing programs we deliver on the behalf of the Government of Canada, and the important work of our researchers who have found that Canada needs an additional 3.5 million homes beyond what's already on track to build. This number has become a rallying point and raised awareness at all levels of government and the private and non-profit sectors of the magnitude of the efforts needed to overcome current housing challenges and build a better future for everyone.”
— Michel Tremblay, CMHC's Acting President and CEO

“On the commercial side, our mortgage loan insurance and securitization products are vitally important in these uncertain economic times, helping to stabilize the housing finance system and incentivize more supply. As Canada’s national housing agency, we will continue to respond when Canadians need us most. The housing investments in recent federal budgets confirm that the Government of Canada will continue to look to CMHC to support Canadians. And we will continue to manage the public resources entrusted to us prudently for the benefit of all Canadians.”
— Nadine Leblanc, CMHC's Interim Chief Financial Officer and Senior Vice-President, Policy

Highlights from Annual Report, as of December 31, 2023:

Our total income* before income taxes decreased by $168 million (9%) compared to 2022 mainly due to a decrease of $210 million (111%) in our Assisted Housing Activity resulting from an increase in net losses on financial instruments.
In 2023, we declared dividends of $1,080 million, funded from our retained earnings from prior years, and our 2023 net income of $1,310 million.
More than 48,000 housing units were purchased across Canada in 2023 with the help of our homeowner insurance products.
Our multi-unit insurance products helped support the construction, refinance or purchase of more than 220,000 housing units. Close to 40% were for new construction, which will add new units to the marketplace. This is an increase of more than 42,000 units from 2022 (24%), mainly due to the popularity of our new MLI Select product, which focuses on affordability, accessibility, and climate compatibility.
At the end of 2023, our total insurance-in-force stood at $414 billion. This represents an increase of $15 billion compared to $399 billion in 2022 as new volumes insured exceeded the run-off of existing policies-in-force.
Highlights of NHS initiatives to December 31, 2023:
- 134,707 new housing units created or committed, and 272,169 housing units repaired or committed;
- 31% of funding committed towards the housing needs of women and children;
- $6.13 billion allocated for the construction, repair and financial support of Indigenous and Northern housing with 23,858 units built, repaired or supported;
- 15,742 affordable units under the Rapid Housing Initiative for those experiencing or at risk of homelessness, including 6,239 for Indigenous people;
- Housing Accelerator Fund launched, providing incentive funding to local governments encouraging initiatives aimed at increasing housing supply, with $2.5 billion committed as of December 31 to cut red tape and fast-track 68,092 housing units. There are now 179 agreements signed with big cities, small towns, rural communities and Indigenous communities across the country, expected to create more than 750,000 homes over the next decade;
- the reduction or elimination of housing need for more than 517,000 households to date;
- Canada Greener Affordable Housing program launched, which will contribute to the decarbonization goals of Canada’s Green Buildings Strategy, to help meet net-zero emissions by 2050.

* On January 1, 2023, we adopted IFRS 17 Insurance contracts (IFRS 17) as issued by the International Accounting Standards Board.

Read the full 2023 Annual Report.

CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to all levels of governments, consumers and the housing industry.