Canada's housing finance system holds firm as guaranteed securities climb to $62B in Q2
Canada Mortgage and Housing Corporation (CMHC) reported solid second-quarter results on August 28, with new securities guaranteed climbing to $62 billion, up from $58 billion during the same period last year. Demand for mortgage financing held firm despite ongoing geopolitical and trade uncertainty.
The figures, published in CMHC's Quarterly Financial Report, signal continued stability in Canada's housing finance system heading into the second half of 2026.
For brokers and lenders, the data provides a useful read on the underlying health of the insured mortgage pipeline at a moment when many market participants have been watching external pressures closely.
Renewed US-Canada trade tensions are creating fresh uncertainty for Canada’s housing market. DLC Group chief economist Dr. Sherry Cooper says tariff pressures and rising US long-term rates could weigh on the economy, Canadian dollar and mortgage rates.https://t.co/ZOYjB7oJjY
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 25, 2026
Multi-unit segment leads first-half gains
The multi-unit residential insurance segment drove much of CMHC's first-half momentum.
According to the report, 141,345 units were insured across the first two quarters of 2026, a 2.8% increase from 137,451 units during the same period in 2025.
Of those, 57,524 units were for new construction, compared with 55,511 in the first half of 2025, pointing to sustained activity in purpose-built development markets where brokers have remained engaged.
CMHC also continued to deliver on the Canada Mortgage Bond (CMB) program expansion announced in Budget 2025, issuing $19 billion in CMBs during Q2 alone. The CMB program pools CMHC-insured mortgages and issues government-backed securities, playing a central role in ensuring financial institutions maintain access to long-term mortgage funding.
"CMHC's second quarter results reflect continued strong demand for the services and products we provide," said Michel Tremblay, Chief Financial Officer and Senior Vice-President, Corporate Services at CMHC.
"Our results also highlight CMHC's role in supporting the stability of Canada's housing system and the accessibility of mortgage financing for both homebuilders and homebuyers."
Arrears hold as insured portfolio expands
The arrears rate for all CMHC-insured mortgages stood at 0.33% as at June 30, up marginally from 0.32% at year-end 2025, but still near historically low levels.
Despite the significant volume of Canadian mortgages that have faced renewal at higher interest rates through 2025 and into 2026, widespread defaults on insured loans have not materialised.
Transactional homeowner insurance saw 18,309 units insured in Q2 2026, a 1% increase from 18,102 units in the comparable quarter of 2025. Total insurance-in-force reached $497 billion as at June 30, up from $471 billion at year-end 2025.
Government funding channelled through CMHC for housing programs totalled $3.6 billion across the first half of 2026, an 8% increase from the same period in 2025.
Programs driving that growth included the Co-operative Housing Development Program and the Canada Housing Benefit, both aimed at expanding supply and improving affordability across Canada's housing markets.
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