Basically, the way the CMB program, the Canada mortgage bonds program, works right now is that CMHC manages the program. They issue Canadian mortgage bonds to the market at a rate of 30 or 40 basis points above the GOC rate, but they go on the market and buy what we call NHA MBS, National Housing Act mortgage-backed securities They are pools of mortgages that are basically bought back from the issuers, the banks. By doing that, they are increasing the liquidity in the market. Increasing the liquidity means those banks are able to provide lower rates to homeowners, basically. This is an implicit subsidy that's being provided by CMHC to that program.
On September 28th, 2023. See this statement in context.