Canada Mortgage Bonds Consultation: Review of Summer 2023 Comments

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Debt Management Strategy Consultations – 2024-25



“Canada Mortgage Bond Consolidation: An Overview of the Government’s Proposal

In a move that could potentially have a profound impact on the Canadian housing market, the government has announced its intention to consolidate Canada Mortgage Bonds (CMBs) within the regular Government of Canada (GoC) borrowing program. This proposal has sparked a flurry of consultations and discussions among various stakeholders, and the decision that will ultimately be made could have far-reaching consequences.

Market Consultations and Stakeholder Engagement

In June and July of 2023, officials from the Department of Finance, the Canada Mortgage and Housing Corporation, and the Bank of Canada engaged in consultations with government securities distributors, institutional investors, mortgage originators, and other interested parties. The goal was to gather feedback and considerations related to the potential consolidation of CMBs within the GoC borrowing program.

The Impact of Stakeholder Input

The comments received during these consultations were carefully considered and weighed as the government worked toward a decision on its CMB policy. The voices of various stakeholders undoubtedly played a pivotal role in shaping the outcome, highlighting the importance of engaging with a diverse range of perspectives when making decisions that could have far-reaching implications.

A Compelling Conclusion

As the government moves forward with its decision to consolidate CMBs within the regular GoC borrowing program, the implications for the Canadian housing market are significant. The outcome of this proposal will undoubtedly be watched closely by all stakeholders, as it has the potential to reshape the landscape of mortgage financing in Canada.

The engagement and consultation process surrounding this proposal serves as a powerful reminder of the value of soliciting input from a wide range of voices when making important policy decisions. In the complex and interconnected world of finance and housing, the insights and perspectives of various stakeholders are invaluable in shaping decisions that will impact the lives of Canadians for years to come.”



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