Canada Mortgage and Housing Corporation-backed multi-residential property mortgages are booming due to increased development.

CMHC-backed multi-family mortgages jumped 45% year-over-year to $12.32 billion in the second quarter, the federally owned company said in a news release. In the second quarter of 2022, CMHC insured $8.48 million in multi-residential property mortgages.

By comparison, individual homeowner-unit mortgage insurance volumes sank 37% year-over-year in the second quarter of 2023 due to higher house prices and interest rates.

“With continued growth forecast in rental housing demand, CMHC continues to forecast growth in its multi-unit loan insurance,” said the Crown corporation.

CMHC is Canada’s only insurer of multi-unit residential mortgages. The corporation has temporarily reduced dividend payments to the federal government to boost the growth and sustainability of purpose-built supply.

The reduction totalled $250 in the second quarter of 2023, CMHC said. The national mortgage-arrears rate remained stable at 0.25%.

The number of mortgages in arrears fell to 3,660 from 3,911 a year earlier.