COVID 19: Canada's Response To Support Continued Lending

The Government of Canada has taken steps to address concerns regarding both the Canadian housing market and Canadian banking institutions' ability to lend during the COVID-19 crisis in its overall financial relief initiatives.

Over the past few weeks, the Government announced that it will be expanding its Insured Mortgage Purchase Program ("IMPP") administered by the Canada Mortgage and Housing Corporation ("CMHC"), a Crown corporation. This program serves to provide stability to banks and mortgage lenders during the COVID-19 crisis and thus facilitate their continued lending to businesses and individuals. Often, mortgage lenders will bundle the mortgages they have lent to sell to investors in order to raise funds for further lending. Under the IMPP, CMHC will purchase insured mortgages as National Housing Act Mortgage-Backed Securities ("NHA MBS").