CMHC multi-unit insurance jumps 30% as securitization volumes rise
Canada Mortgage and Housing Corporation insured 71,733 multi-unit residential units in Q1, far outpacing traditional homeowner insurance as its securitization activity also climbed.
Written by CMT Team, May 29, 2026
Canada Mortgage and Housing Corporation saw a sharp increase in multi-unit mortgage insurance activity in the first quarter, with volumes far outpacing transactional homeowner insurance as the agency continued to expand its role in rental housing finance.
CMHC insured 71,733 multi-unit residential units in Q1, up 30% from 55,383 a year earlier. By comparison, transactional homeowner insurance totalled 10,459 units, up slightly from 10,030 in Q1 2025. The increase helped lift total insured volumes to 89,301 units, compared with 66,160 a year earlier.
The jump in multi-unit activity was not entirely a new-construction story, with CMHC reporting 26,294 insured new-construction units in the quarter, down slightly from 27,447 a year earlier.
In its quarterly financial report, CMHC said the increase in multi-unit volumes was largely due to more units being refinanced, particularly under its Standard Rental Housing product. The increase was mainly concentrated in Quebec, Ontario and British Columbia.
The figures point to CMHC’s growing role in rental housing finance, even as Canada’s resale housing market remained soft through the first quarter.
“Despite a more uncertain economic environment, CMHC’s first quarter results reflect the strength of our core businesses,” said Michel Tremblay, CMHC’s chief financial officer and senior vice-president of corporate services. “We will continue to closely monitor economic conditions while supporting the stability and accessibility of Canada’s housing system.”
The agency also pointed to higher average loan-to-value ratios on new-construction loans and a higher proportion of loans insured under its Standard Rental Housing product, both of which contributed to a higher average premium rate.
CMB issuance rises as CMHC expands funding role
CMHC’s securitization activity also rose in the quarter, reflecting Ottawa’s expanded use of government-backed mortgage funding programs.
The agency guaranteed $63 billion in new securities in Q1, up from $54 billion a year earlier. That included $42 billion in National Housing Act Mortgage-Backed Securities and $21 billion in Canada Mortgage Bonds.
CMHC said it is now executing on the increase to the annual Canada Mortgage Bond limit announced in Budget 2025, which raised the cap to $80 billion from $60 billion. The NHA MBS annual limit also rose to $190 billion from $170 billion.
Total guarantees-in-force increased to $580 billion as of March 31, up from $573 billion at the end of 2025. The Canada Mortgage Bond component rose to $313 billion from $296 billion, while NHA MBS guarantees-in-force declined to $267 billion from $277 billion.
CMHC said the larger CMB program required more NHA MBS to be sold to Canada Housing Trust.
Growth brings higher capital demands
The expansion of CMHC’s multi-unit insurance business is also coming with higher capital requirements.
New OSFI capital rules for multi-unit residential mortgage insurance took effect Jan. 1, increasing the capital CMHC must hold against those exposures. CMHC said the transition to the new framework required an additional $1.2 billion in capital as of March 31 and had a 20% impact on its MICAT ratio.
The federal government injected $3.1 billion into CMHC’s mortgage insurance activity to support the transition, lifting total mortgage insurance capital to $17.6 billion from $14.3 billion at year-end.
CMHC said the suspension of all dividends to the federal government remains in effect as it continues to retain capital for multi-unit growth and the transition to the new framework. It also transferred excess capital from its securitization activity to its mortgage insurance activity in Q4 2025.
The capital details highlight a tension now running through CMHC’s mortgage insurance business: Ottawa is relying more heavily on the agency to support rental housing finance, while the new regulatory framework requires more capital to be held against that same growth.
Additional highlights
Other mortgage-related takeaways from CMHC’s first-quarter results include:
- Portfolio insurance rose sharply to 7,109 units from 747 a year earlier, though CMHC attributed the increase mainly to one significant large pool, along with enhanced business solicitation efforts with lenders.
- CMHC’s insured arrears rate edged up to 0.33% as of March 31, compared with 0.32% at year-end and 0.30% a year earlier. Transactional homeowner arrears stood at 0.42%, while portfolio insurance arrears were 0.18% and multi-unit residential arrears were 0.36%.
- Claims paid rose to $19 million from $8 million a year earlier, though CMHC said mortgage insurance arrears, claims and defaults remain below historical norms. The increase was attributed to more claims from recent vintages, higher average claim amounts and a change in the mix of claim processing types.
- CMHC reported net income of $487 million, up from $434 million a year earlier. Mortgage insurance net income rose to $310 million from $236 million, while securitization net income was unchanged at $196 million.
- Government funding totalled $2.9 billion, up 10% from Q1 2025, driven by programs including the Co-operative Housing Development Program, Canada Housing Benefit and Affordable Housing Fund.
www.canadianmortgagetrends.com/2026/05/cmhc-multi-unit-insurance-jumps-30-as-securitization-volumes-rise/
