Canada Mortgage and Housing Corporation will pay a $1 billion dividend to the Canadian government.
The CMHC reports its dividend payments to the government, its only shareholder, on a quarterly basis.
In a statement, CMHC says:
“As a Crown Corporation, we are the only mortgage insurer whose proceeds benefit Canadians. 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.”
The newly-announced payment will be made by November 30, 2018. The $1 billion payment matches the one announced for the previous quarter.