98 Percent of CMHC Employees Got Bonuses Last Year Totalling $27M

In 2020, 98 Percent of CMHC Employees Received $27M in Bonuses

April 5, 2024 TruthUSA

Documents obtained by the Canadian Taxpayers Federation reveal that Canada’s national housing agency distributed over $27 million in bonuses to its employees last year, totaling $102 million in extra pay since 2020.

The Canadian Mortgage and Housing Corporation (CMHC) is tasked with enhancing housing affordability, as highlighted by Canadian Taxpayers Federation (CTF) federal director Franco Terrazzano in an April 4 press release. Terrazzano questioned the rationale behind awarding such large bonuses during a housing affordability crisis.

Mr. Terrazzano criticized CMHC for rewarding its staff with bonuses while many Canadians struggle to afford homes, pointing out that 98 percent of employees received bonuses in 2023, with an average amount of $11,800 per person.

Executive level employees at CMHC received a total of $4.1 million in 2023, including $831,062 in bonuses, as per documents.

Last year, 1,073 employees at CMHC, accounting for 46 percent of the organization’s workforce, earned over $100,000 annually. This represents a 15 percent increase from 2020, costing taxpayers a total of $140 million in employee salaries in 2023.

According to Mr. Terrazzano, instead of allocating substantial amounts to employee bonuses, CMHC could address the housing affordability crisis better by employing carpenters to construct more homes.

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The CMHC did not respond to The Epoch Times’ request for comment. Housing affordability in Canada has reached a 30-year peak, according to a housing affordability report released by the Royal Bank of Canada on April 4.

The report states that the average Canadian household would need to allocate 63.5 percent of its income to afford a home at current market rates, making it the most challenging time in history to purchase a home.

CMHC’s deputy chief economist highlighted the housing affordability crisis in an October 2023 report, emphasizing the urgent need for more housing across all market segments to address the issue swiftly.

CMHC estimates that over 22 million homes are required by 2030 to achieve affordability but plans fall short by 3.5 million homes. Mr. ab Iorwerth suggests an investment of at least $1 trillion is needed to meet this target.

The CEO of CMHC informed the Senate finance committee that there is currently no strategy in place to resolve the housing shortage issue despite the pressing need for action.

CIBC’s report challenges CMHC’s estimation of 3.5 million needed homes by 2030, stating the figure is outdated given the population growth. CIBC projects that closer to 5 million new homes are necessary to address the housing deficit.

Noé Chartier contributed to this report.

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