Mr. Speaker, in response to the question, part of Canada Mortgage and Housing Corporation’s, or CMHC’s, mandate is to contribute to market stability by providing information on potential housing market vulnerabilities.
In terms of insurance risk, interest rates are but one consideration and should not be looked at in isolation. CMHC’s corporate-wide stress testing program and capital adequacy is forward looking and responsive to emerging events, and interest rates are one of the factors taken into consideration in the analysis. Performing such frequent analyses allows CMHC to identify potential threats to our capital and liquidity levels and enhance our operational readiness, as necessary. People can consult CMHC’s last published 2022-26 corporate plan for more information, specifically page 37 for financial highlights, page 60 for commercial operations and mortgage insurance, and page 80, appendix 5, regarding stress testing.
CMHC’s 2023-27 corporate plan will be submitted to Parliament according to schedule and will include the current rate environment, further forecasts and our capital adequacy projections.
Additionally, as part of its quarterly financial reporting, CMHC reports on mortgage arrears, defaults, via its mortgage loan insurance business supplement, June 30, 2022, specifically tab 25, transactional homeowner and portfolio, arrears; and tab 26, transactional homeowner and portfolio, claims paid. Note that default does not mean an insurance claim.
CMHC does not have projected numbers on CMHC-insured mortgage loans that will be in a default situation based on the current interest rate or higher interest rates, broken down by 50 basis point intervals.