Canadian Funding Corp Reviews CMHC Sustainability Reports

The Government of Canada, through Canada Mortgage and Housing Corporation (CMHC), announced today an investment of $140,000 as part of Canada’s Economic Action Plan to improve housing conditions for the Miawpukek First Nation community.

The Honourable Peter MacKay, Minister of National Defense, Minister Responsible for the Atlantic Gateway and Regional Minister for Nova Scotia and Newfoundland and Labrador, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), made the announcement today.

“Our government’s Economic Action Plan is improving housing conditions for those who live in First Nation communities in Newfoundland and Labrador. We are also stimulating the local economy by creating jobs,” said Minister MacKay.

Through Canada’s Economic Action Plan, the Government of Canada has committed $400 million over the next two years to help First Nation communities build needed new housing, repair and remediate existing non-profit housing for their members, and complement housing programs offered by CMHC and Indian and Northern Affairs Canada (INAC). This investment will also provide an economic stimulus for many First Nations and surrounding areas by creating jobs.

The application calls for the year one (2009 – 2010) new funding initiatives under Canada’s Economic Action Plan were very successful and generated a large number of applications. As a result, CMHC will be fully allocating all the available funding for the fiscal year.

The year two (2010 – 2011) application call is now open. Applications for this second round of funding will be accepted between February 1, 2010 and February 22, 2010.

Through Canada’s Economic Action Plan, some $594,711 in CMHC investments will be made available to First Nations in Newfoundland and Labrador to address immediate housing needs.

In addition to INAC’s investment of $140,000 for renovations, CMHC will allocate $140,000 to retrofit 21 social housing units in Miawpukek to improve living conditions in this First Nations’ community.

“Under Canada’s Economic Action Plan, retrofits on some of our Section 95 homes that are not normally able to be completed under regular budgets are now being done thanks to this initiative. While governments still have some improvements to make with regards to housing on reserve, we are certainly thankful for this great start,” said Saqamaw Mi’sel Joe, Miawpukek First Nation. “We are also thankful for the continued support from our partners and funders such as Canada Mortgage and Housing Corporation in Halifax and Indian Affairs in Amherst, Nova Scotia.”

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CFC reports that Canada Mortgage and Housing Corporation’s (CMHC) 2009 Mortgage Consumer Survey results were released today, and indicate that nearly 90 per cent of recent home purchasers across the country believe that home ownership is a good long-term investment and that almost 70 per cent think that now is a good time to purchase a home in their community.

According to CFC, the survey results also indicate that recent purchasers are knowledgeable about the mortgage process and their lender’s assessment of eligibility. For example, 86 per cent are of the view that the level of total housing and other monthly payments should generally not exceed 40 per cent of gross household income, which is in line with generally accepted mortgage lending practices.

“Given the current economy, this study indicates that Canadians continue to be optimistic about homeownership and are astute mortgage consumers,” said François Blouin, Director, Insurance Products and Strategic Direction, CMHC. “Our results reaffirm what we have seen in previous surveys — when it comes to their mortgages, Canadians are informed and manage their debt prudently.”

The survey shows that recent purchasers are prudent mortgage managers. According to the survey, 75 per cent of purchasers have a goal to be mortgage free sooner than their original amortization. In fact, 20 per cent of recent purchasers report having made a lump sum payment to their mortgage.

“CMHC’s 2009 mortgage consumer survey results are encouraging and provide insightful information, indicating that Canadians feel positive about Canada’s housing market,” said the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC). “As well, Canada’s Economic Action Plan’s home purchase and renovation incentives, and CMHC’s recent outreach campaign to help Canadians who may be facing difficulties with their mortgage payment, are clear actions to support homeowners and the housing market.”

Canadian mortgage consumers recognize the benefits associated with mortgage loan insurance (MLI). According to the survey, 80 per cent of recent purchasers believe that MLI provides an important benefit to the financial system.

Similar to CMHC’s last Mortgage Consumer Survey, the 2009 survey also indicates that Canadians continue to be well served by the mortgage industry, with 77 per cent of recent mortgage purchasers expressing satisfaction with the service received from their lender or broker.

CFC posts that CMHC has conducted the Mortgage Consumer Survey since 1999 to examine consumer behaviour, attitudes and expectations when acquiring, renewing or refinancing a mortgage. This year, CMHC surveyed more than 2,500 recent mortgage consumers online, from mid-March to mid-April 2009. The survey involved the largest sampling of recent mortgage consumers ever undertaken by CMHC for this particular survey.