What percentage of the market does CMHC hold?

The correct answer indicates that CMHC (Canadian Mortgage and Housing Corporation) holds approximately two-thirds of the market share in mortgage insurance in Canada. This substantial market presence is due to CMHC's role as a government-backed insurer, which enables it to offer competitive rates and widespread access to mortgage insurance for home buyers and lenders.

A market share of two-thirds reflects CMHC's integral position in ensuring stability and support in the mortgage industry, particularly during economic fluctuations. The agency aims to facilitate access to affordable housing and manage risk in the housing finance system. Its significant market participation also demonstrates the reliance of both borrowers and lenders on government-backed insurance as a safety net in mortgage transactions.

Other options represent either an underestimation or overestimation of CMHC's market standing, highlighting the misconception about its role and impact in the Canadian mortgage landscape.