By law, borrowers with down payments of less than 20 per cent must purchase mortgage insurance to cover potential losses if they default on their loans. (Galit Rodan/Bloomberg )CMHC is the dominant mortgage insurer, but they do compete with private companies Genworth and Canada Guaranty for business. In his letter, Siddall pleaded with lenders to work with CMHC to make sure lending standards don't become even more lax. By not tightening lending standards, Siddall warned that the entire economy could be put at risk. Canada's ratio on that front has blown past 100 per cent and is approaching 115 per cent, Siddall warns.

Source: CBC News August 12, 2020 18:19 UTC