CMHC is Canada’s mortgaging and housing corporation. Canada’s national housing agency is about 60 years old and started after the World War II in order to provide shelter for the affected people and returning soldiers. They started with an idea to render these people with easy mortgage loans with small down payments (about 10%) and easy terms and conditions. They provide solutions to various housing problems by working out with community organizations, private sectors, non – profit organizations and government at different levels. They are always in the service of Canadians and aim to improve their quality of life. Today, they are providing residential mortgages to the people who are seeking to buy property in Canada.

CMHC enables lender to deal even with the riskier cases as it will bear some of the loss in case of any mortgage default.  This means they will hold responsibility of any dispossession.

They are creating socio- economic differentiation by allowing low rate of interest in the area they want to develop.