Madam Speaker, let me assure the member that the government does not subsidize luxury condominium developments. Mortgage insurance is not a subsidy. Mortgage insurance protects approved lenders against losses resulting from borrowers defaulting on their mortgages. The lender pays the premium that covers the cost of providing insurance coverage.
As Canada's national housing agency, Canada Mortgage and Housing Corporation provides access to mortgage financing for all Canadians regardless of where they live in Canada. It provides mortgage loan insurance on a wide range of housing types across Canada, including condominiums, single family housing, affordable rental apartments and retirement homes for seniors.
CMHC's mortgage loan insurance enables Canadians to buy a home with as little as 5% down payment. This insurance has provided one in three Canadians with an opportunity to own their own home and it has also contributed to the availability of rental housing and nursing and retirement home beds in our country.
CMHC is the only mortgage insurer in Canada to offer mortgage insurance for the construction of new rental housing and the purchase of existing units. Insurance is also available on loans for construction of multi-unit residential buildings, including rental apartments and condominiums. It also helps make affordable rental housing available at lower cost financing.
I want everyone to understand that CMHC operates its mortgage insurance on a commercial basis at no cost to the Canadian taxpayer. As members can see, CMHC's mortgage loan insurance helps to ensure that low cost financing is available for housing purchases all across Canada.