Is a privatized CMHC a good idea? The International Monetary Fund (IMF) thinks so.
IMF advises Ottawa to trim CMHC’s mortgage activities, then maybe phase it out
The International Monetary Fund says the Canadian government should look for ways to clip the wings of Canada Mortgage and Housing Corp. and eventually get out of the mortgage insurance business altogether.
The Washington-based financial organization says in a working paper that government actions to cool Canada’s hot housing have had some impact, but the market remains the single most important domestic risk to the economy.
Furthermore, it notes that if there is a crash, taxpayers would be left holding the bag because CMHC guarantees high-risk mortgage debt through government backing.
Ottawa should impose the same oversight on CMHC as it does private mortgage insurers and try to increase the private sector’s participation in the market from the current level of about 25 per cent, the paper says.
Longer term, the IMF says the government should consider eliminating its role in the mortgage insurance business altogether, as Australia has done.
This is not the first time the IMF has urged Ottawa to trim CMHC’s sails, and the government has done just that on several occasions, the most recent coming last month when the agency declared it would no longer insure second homes.
But the paper by economists Ivo Krznar and James Morsink, published earlier this week, hardens the IMF’s stance toward the federal agency.
Read more at: http://www.timescolonist.com/
BONUS
The Five Must Have Features of a Billionaire’s Dream Home
If you’re putting together the ideal features for your ultimate luxury dream house, there are a few must-have items that you should keep in mind. Here’s a selection of five important items that belong in the home of every billionaire:
AN INFINITY POOL
Image Source
Of course any high-end dwelling includes plenty of opportunities to submerge your body in water, and swimming pools are so common they don’t even count as a luxury. An infinity pool, however, notches up the swimming experience, giving you the sensation of being boundless by creating a singularly seamless view.
A BALLROOM
Image Source
The whole point of creating your dream house is to make it into a sanctuary from the mundane realities of daily living. Nothing puts you into a legendary lifestyle faster than strolling through your own full-size ballroom, planning your next formal get together with hundreds of your closest friends.
A 2-STORY CLOSET
Image Source
Closet space is something that nobody should overlook, and being a billionaire means you have to pay extra attention to ensuring there’s room for your whole wardrobe. Who says closets have to be small? A walk-in closet encompassing two floors allows plenty of space for all those designer shoes and it bags, allowing you to spend the entire day choosing the perfect outfit for that walk down the red carpet!
DISAPPEARING WALLS
Image Source
No matter how big your house is, you don’t want to feel trapped indoors on a beautiful day. A real dream house sheds its walls at your bidding, so you can bring the outdoors in, no matter what room you happen to be enjoying.
PLENTY OF SECURITY
Sometimes ordinary walls just aren’t enough. For those times when you’re feeling a bit insecure, nothing spells comfort like a safe room. Lock yourself in to watch your favourite movie or count your gold and enjoy the certainty in knowing that nobody can sneak up on you.
These five parts of your perfect home are only the beginning; Choose the right piece of real estate and then add the special features that make it feel like home. Your own heliport, perhaps, or parking for your seaplane?
Embrace the good life by creating the home you’ve always dreamed of!
