What is a key function of the Canada Mortgage and Housing Corporation?

The Canada Mortgage and Housing Corporation (CMHC) plays a crucial role in the Canadian housing market, and one of its primary functions is administering mortgage insurance. This insurance is designed to protect lenders against default on loans made to borrowers with a down payment of less than 20%. By offering this type of insurance, CMHC encourages homeownership among Canadians, allowing individuals and families to secure financing to purchase homes even if they do not have a large down payment saved.

Additionally, mortgage insurance helps stabilize the housing market by reducing lender risk and increasing the availability of credit to homebuyers. This mechanism thus plays a significant role in promoting affordable housing and ensuring that the housing market operates smoothly in Canada.

While the other options represent various aspects of the real estate and mortgage landscape, they do not accurately reflect the core functions of CMHC. Providing investment advice, managing property sales, and regulating real estate practices fall outside the scope of CMHC’s responsibilities, which are primarily focused on mortgage insurance and housing policy development.