‘Condo King’ Reveals Plan with Carney to Use CMHC for Foreign Rental Investments
A plan to use Canada’s state-owned mortgage insurer to attract foreign investment into rental properties is being developed, according to comments from Vancouver real estate developer Bob Rennie, who says he is working with newly elected Liberal Party leader Mark Carney on the initiative.
Rennie, known as Vancouver’s “Condo King,” revealed on a recent episode of ConversationsLive podcast that he is collaborating with Carney on developing a rental investment program that would involve the Canada Mortgage and Housing Corporation (CMHC).
“[I’m] working with Carney, surprise, and I’m trying to get a rental program in where people can buy, put it into a 25-year pool, a preferred rate from the CMHC, and let’s allow foreign buyers to buy it, they have to rent it out for 25-years,” Rennie said in the interview.
The proposal would leverage government backing to help foreign investors purchase Canadian properties that would be committed to the rental market for 25 years, according to Rennie’s description.
The CMHC has previously cautioned about government intervention in mortgage financing. According to public documents, the agency warned the Government of Canada that directly funding mortgage credit may lead to a net loss, since it competes for capital in the market.
If confirmed, the program is a pivot in how the CMHC’s resources would be utilized. The agency was originally established to help Canadians become homeowners but has evolved in its mandate over time.
Canada’s housing market continues to face affordability challenges in major urban centers, with cities like Toronto and Vancouver experiencing high prices relative to local incomes.
Carney, who previously served as governor of both the Bank of Canada and the Bank of England before recently becoming Liberal Party leader, has not publicly commented on the proposal described by Rennie.
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