MLI’s Mortgage Paper Makes Waves
In November, MLI published Mortgage Insurance in Canada by University of Guelph Associate Professor Jane Londerville. Almost three months later, even as other think tanks enter the debate, the paper continues to make waves across Canada’s mortgage insurance sector.
In today’s Globe and Mail, Tara Perkins writes,
A paper by Jane Londerville, an associate professor at the University of Guelph, released by the Macdonald-Laurier Institute for Public Policy in November, noted that in 1997, CMHC lacked sufficient reserves to cover the claims being made, and Ottawa had to step in to ensure the agency had enough capital. Since then, CMHC has charged higher rates.
Ms. Londerville argued that CMHC’s “unfair” advantage over private sector competitors is hurting consumers who buy mortgage insurance. A person buying a $300,000 house with a 5-per-cent down payment, for example, would pay about $8,000 for mortgage insurance – more if he were deemed a risky borrower.
The article has already been picked up by financial sector players like Canadiana Financial Corp as the message of the MLI paper spreads across the land.
Related posts:
- Mortgage Insurance in Canada The Macdonald-Laurier Institute (MLI) today released “Mortgage Insurance in Canada: Basically sound but room for...
- New paper argues first-time homebuyers may be subsidizing Ottawa’s bottom line Author urges thorough review of Canada’s mortgage insurance system to ensure fairness and sustainability MEDIA...
- MLI Author Jane Londerville presented paper on mortgage insurance at third meeting of the Standing Committee on Finance for Bill C-3 On Monday June 20, 2011, MLI author Dr. Jane Londerville was asked to be a...
- Straight Talk with Jane Londerville: Government bias in favour of CMHC hurting house-buyers MEDIA RELEASE OTTAWA, June 4, 2012 – Homebuyers who need mortgage insurance are best served...
- Mortgage Insurance in Canada: Make it more competitive The Macdonald-Laurier Institute (MLI) today released “Mortgage Insurance in Canada: Basically sound but room for...
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