Quote:
Originally Posted by Nancy
The Fed probably has more room to increase rates without killing mortgagees, with just 10% of mortgages in the US being ARMs and the balance being mostly 25 year mortgages. In Canada, 32.5% of mortgages are variable and the balance are mostly 5 year mortgages... and with CMHC on the hook if they default.
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Does CMHC hoard tonnes of cash from years of ever increasing real estate prices or did insurance rates lower to limit profit kind of like EI does? Would CMHC need bailing out with a large housing crash?