The agency tested its mortgage loan insurance and securitization businesses against several scenarios including different changes in the unemployment rate and home prices.
The tests looked at the impact of a severe and prolonged economic depression and a plunge in the price of oil.
Other situations that were tested included a strong earthquake and a sudden rise in interest rates that causes a drop in housing prices and the failure of a Canadian financial institution.
They also looked at what would happen if a U.S. style housing correction occurred in Canada.
CMHC says the tests confirm that its capital holdings are sufficient.
To read the complete article, please click here