CMHC declares dividend of $1.175B payable to the Government of Canada

OTTAWA, Nov. 28, 2018 /CNW/ - The Board of Directors for Canada Mortgage and Housing Corporation (CMHC) has approved a dividend of $1.175 billion to its shareholder, the Government of Canada. The dividend is payable by February 28, 2019.

For the first time, CMHC's dividend includes $175 million from its securitization business. CMHC has now declared $4.175 billion in dividends so far this year.

CMHC manages its mortgage insurance and securitization activities on a commercial basis. The premiums and fees collected from these activities cover all related expenses while generating a reasonable return for its shareholder, the Government of Canada.

The dividend balances returning excess capital to the Government, while retaining sufficient capital to protect against housing market risks. Our dividend framework is informed by our risk appetite, stress testing and scenarios analysis. We intend to continue to return excess capital to the Government while establishing a dividend that allows us to maintain capital in line with our long-term capital needs.

CMHC's intention is to continue declaring dividends on a quarterly basis, subject to approval by our Board of Directors.

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As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. For more information, follow us on Twitter, YouTube, LinkedIn, Facebook and Instagram.

SOURCE Canada Mortgage and Housing Corporation