Merci, monsieur le président et mesdames et messieurs. My name is Jim Murphy. I'm the senior director of the Canadian Institute of Mortgage Brokers and Lenders, or CIMBL, which is an 8700-member national association.
CIMBL represents all facets of the mortgage industry including mortgage lenders, mortgage insurers, mortgage brokers, and mortgage agents. We have members in all ten provinces and two of the territories.
You know that the residential real estate market in Canada has done exceptionally well over the last several years. Our industry is a key component of helping Canadians reach their dream of home ownership.
Two studies we have undertaken--one from last fall on the state of the residential mortgage market in Canada, and a second one from earlier this spring highlighting consumer choices in mortgages--show that there is over $615 billion in outstanding mortgage credit in Canada today, and that this total is growing by 10% each and every year. You have copies of these research findings in the packages before you.
Mortgage insurance is a key component of the financial network that helps Canadians own their own home. It is a system that has worked well in Canada. As home prices rise, the ability of many Canadians to have a down payment of 25% or less diminishes. And I should say that this rule applies to federally incorporated deposit-taking institutions under the Bank Act. Our industry and mortgage insurance provide the means for Canadians to own a home.
CIMBL supports competition in the mortgage insurance marketplace. We believe, however, that the committee and the government should be fully aware of the issues related to competition, so that the overall financial integrity of the system is maintained.
I'd like to highlight three issues.
First, there should be a level playing field for mortgage insurance providers in the country. Second, the financial viability of the industry must be insured, particularly if there is any downturn in the market--and we're noticing a slowdown in a couple of the provinces. Last, protection for borrowers and home owners must be paramount.
Merci.