Mr. Speaker, when most people get insurance, they pay a premium. If they have a claim, they pay a deductible. However, CMHC offers banks full insurance against losses. While homebuyers pay the premium and taxpayers pay the deductible, the banks pay neither. Hundreds of billions of dollars are at risk as a result.
Has the government calculated how much taxpayers could lose if a market correction causes home prices to go down, or higher interest rates cause mortgage defaults to go up?