National Housing Act (R.S.C., 1985, c. N-11)

Act current to 2017-11-06 and last amended on 2016-06-22. Previous Versions

Marginal note:Debts treated as loans
  •  (1) For the purposes of this Act, a transaction by which a person becomes indebted to a creditor is to be treated as the making of a loan from the creditor to the person.

  • Marginal note:Persons treated as owner

    (2) If the Corporation is of the opinion that the circumstances so warrant, a lessee, a purchaser under an agreement or an occupant may be treated as an owner for the purposes of this Act.

  • 1999, c. 27, s. 2.

Purpose

Marginal note:Purpose

 The purpose of this Act, in relation to financing for housing, is to promote housing affordability and choice, to facilitate access to, and competition and efficiency in the provision of, housing finance, to protect the availability of adequate funding for housing at low cost, and generally to contribute to the well-being of the housing sector in the national economy.

  • R.S., 1985, c. N-11, s. 3;
  • 1992, c. 32, s. 6;
  • 1999, c. 27, s. 2.

Rights and Obligations of the Corporation

Marginal note:Her Majesty has rights and obligations of the Corporation

 Every right or obligation acquired or incurred by the Corporation under this Act, whether in its name or in the name of Her Majesty, is a right or obligation of Her Majesty.

  • R.S., c. N-10, s. 4.

 [Repealed, 1999, c. 27, s. 3]

Approved Lenders

Marginal note:Designation
  •  (1) The Corporation may designate any person as an approved lender for the purposes of this Act.

  • Marginal note:Term of designation

    (2) The designation of an approved lender and any renewal of that designation are in force for any period that the Corporation may specify.

  • Marginal note:Conditions and restrictions

    (3) The Corporation may, at any time, establish conditions and restrictions applicable to an approved lender.

  • Marginal note:Suspension

    (4) The Corporation may, at any time, suspend or cancel the designation of an approved lender.

  • Marginal note:Fees

    (5) The Corporation may establish schedules of fees payable by approved lenders in relation to their designation and supervision.

  • Marginal note:Regulations

    (6) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations respecting the designation of approved lenders, including regulations establishing criteria that a person must meet in order to be so designated.

  • R.S., 1985, c. N-11, s. 5;
  • R.S., 1985, c. 25 (4th Supp.), s. 2;
  • 1999, c. 27, s. 3;
  • 2011, c. 15, s. 22.
Marginal note:Powers of approved lenders
  •  (1) Subject to subsection (2), an approved lender who is subject to the jurisdiction of Parliament may, notwithstanding any restrictions on the power of the lender contained in any other statute or law,

    • (a) make loans on such terms and conditions as are provided for by or under this Act;

    • (b) acquire from the Corporation any secured obligation in favour of the Corporation that is to be insured or guaranteed by the Corporation after it is acquired;

    • (c) dispose of or acquire insured loans together with the security taken in respect of those loans;

    • (d) pledge an insured loan with the Corporation or an approved lender to secure the repayment of money borrowed, and borrow money from the Corporation or an approved lender on the security of an insured loan;

    • (e) administer an insured loan for and on behalf of the holder of the loan; and

    • (f) on such terms and conditions as are specified by the Corporation, act as agent for the Corporation in the exercise of any of the Corporation’s powers and functions under Part I and in the making or administering of loans that the Corporation is authorized to make.

  • Marginal note:Restriction of powers

    (2) The Corporation may restrict the powers that an approved lender may exercise under subsection (1).

  • R.S., 1985, c. N-11, s. 6;
  • 1999, c. 27, s. 3.

PART IHousing Loan Insurance, Guarantee and Protection

Marginal note:Definitions

 The following definitions apply in this Part.

Chairperson of the Canada Deposit Insurance Corporation

Chairperson of the Canada Deposit Insurance Corporation[Repealed, 2016, c. 7, s. 171]

Commissioner of the Financial Consumer Agency of Canada

Commissioner of the Financial Consumer Agency of Canada means the Commissioner of the Financial Consumer Agency of Canada appointed under section 4 of the Financial Consumer Agency of Canada Act. (commissaire de l’Agence de la consommation en matière financière du Canada)

Governor of the Bank of Canada

Governor of the Bank of Canada means the Governor of the Bank of Canada appointed under section 6 of the Bank of Canada Act. (gouverneur de la Banque du Canada)

housing loan

housing loan means a loan that

  • (a) relates to a housing project;

  • (b) is secured at least in part by security on or affecting a housing project or by an agreement relating to the use, occupancy or disposal of a housing project;

  • (c) is made for the purpose of acquiring a financial interest in a person who, directly or indirectly, owns, leases or operates a housing project; or

  • (d) is made for the purpose of refinancing a debt that the Corporation is of the opinion relates to a housing project or to a financial interest referred to in paragraph (c). (prêt à l’habitation)

Superintendent

Superintendent means the Superintendent of Financial Institutions appointed under section 5 of the Office of the Superintendent of Financial Institutions Act. (surintendant)

  • R.S., 1985, c. N-11, s. 7;
  • R.S., 1985, c. 25 (4th Supp.), s. 3;
  • 1992, c. 32, s. 8(F);
  • 1999, c. 27, s. 3;
  • 2012, c. 19, s. 351;
  • 2016, c. 7, s. 171.
Marginal note:Objects

 The Corporation has the following objects in carrying on any activities under this Part or Part I.1:

  • (a) to promote the efficient functioning and competitiveness of the housing finance market;

  • (b) to promote and contribute to the stability of the financial system, including the housing market; and

  • (c) to have due regard to the Corporation’s exposure to loss.

  • 2012, c. 19, s. 351.
Marginal note:Insurance of loans
  •  (1) The Corporation may provide insurance against risks relating to housing loans.

  • Marginal note:For whose benefit

    (2) For lenders, the purpose of insuring housing loans is to indemnify lenders in the event of default by borrowers. The obligations of borrowers or other persons are not released or discharged by that insurance or indemnification.

  • R.S., 1985, c. N-11, s. 8;
  • R.S., 1985, c. 25 (4th Supp.), s. 4;
  • 1999, c. 27, s. 3.
Marginal note:Regulations — Minister of Finance
  •  (1) The Minister of Finance may, after consulting the Governor of the Bank of Canada and the Superintendent, make regulations respecting classes of housing loans and the criteria to be met by loans in each of those classes in order for the Corporation to be able to provide insurance against risks relating to those loans.

  • Marginal note:Criterion  — guarantee

    (1.1) Any criterion established by a regulation made under subsection (1) that relates to a guarantee of payment referred to in subsection 14(1) may apply to an existing insured loan.

  • Marginal note:Coming into force

    (2) A regulation made under this section comes into force on the day on which it is published in the Canada Gazette or on any later day that is specified in the regulation unless the regulation provides otherwise and it gives effect to a budgetary or other public announcement, in which case the regulation must not come into force before the day on which the announcement was made.

  • R.S., 1985, c. 25 (4th Supp.), s. 5;
  • 1999, c. 27, s. 3;
  • 2011, c. 15, s. 23;
  • 2012, c. 19, s. 357;
  • 2014, c. 20, s. 316.
 
Date modified: