Canada Guaranty Mortgage Insurance Benefits

Mortgage Insurance Insights Newsletter

Introduction from Andy Charles


Andy Charles

Rebuilding Communities
The change of seasons often prompts reflection on the events of the past quarter and consideration for what is to come. Following an active spring, I reflect that while two housing markets in Canada were experiencing the effects of a surging housing market,  others are facing challenges including a slowing marketplace and, for some Canadians, the difficult task of rebuilding their homes, their communities and their lives. This May, the perseverance of 80,000 Fort McMurray, Alberta residents was tested as wildfires devastated neighbourhoods and displaced families. The independent and proud spirit of that province was on display as many Albertans (including a Canada Guaranty team member) came together to open their doors to shelter evacuated families in need.

We’re privileged to work in an industry that creates opportunities for Canadians to realize their dream of homeownership. We also have an obligation to support home buyers with dreams that have been threatened by unexpected circumstances. Canada Guaranty is committed to working closely with our lender partners to find solutions that help mitigate unforeseen financial hardship, as a result of home or job loss. Throughout the process, our Loss Management Team is available to provide ongoing support to our partners, while offering guidance on implementing appropriate workouts through our Homeownership Solutions Program.

Raising Down Payments
I recently had the pleasure of speaking with Canadian Mortgage Trends and the National Post, where I was asked to provide my perspective on the impact of raising the minimum down payment on insured mortgages. While I respect the opinions expressed in our industry, this measure would have very little material impact on the trajectory of rising house prices in the GTA and GVA. The first-time home buyer segment represents just 30% of the housing market and has a $1-million maximum. These buyers are not purchasing the multi-million dollar properties in the greater Toronto and Vancouver areas.  As I expressed in the article, increasing the down payment requirements would only hurt new home buyers in Canada’s smaller urban housing markets, where a negative economic impact would be readily felt and do little to address the GVA/GTA market dynamics. I have no doubt that discussions on moderating these overheated housing markets will continue through the summer months.


We appreciate your continued business and look forward to providing you with our dedicated support throughout another busy season.

Andy Charles
President and CEO
Canada Guaranty Mortgage Insurance Company

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