Thank you, Mr. Chairman.
My name is Noël Roy and I am responsible for the development of Desjardins' mortgage financing product. I would first like to thank the finance committee for their invitation to appear this afternoon.
With some 5.5 million owner- members, consumers and businesses alike, Desjardins is the leading financial institution in Quebec as well as the largest cooperative financial group in Canada. Elsewhere in Canada, Desjardins is associated with caisses populaires in Ontario, Manitoba, and New Brunswick, as well as with Desjardins Credit Union in Ontario. With a market share approaching 40 per cent, Desjardins is by far Quebec's leader in the residential mortgage credit market. As such, Desjardins has approved approximately 600,000 mortgage loans throughout all regions of Quebec. Close to 30 per cent of our mortgage loans portfolio benefits from a mortgage insurance protection, mainly with the CMHC and to a lesser extent, Genworth Financial. We enjoy excellent relationships with both entities.
As noted in the 2006 budget, the current government program which provides a government guarantee for companies that ensure mortgage loans has contributed to a competitive mortgage insurance market and more affordable housing for Canadians.
We support the government's initiative to encourage competition in the mortgage insurance market. Increased competition in this market will promote greater housing accessibility at more competitive costs. We therefore believe that extending the guarantee program to new entrants will allow a greater number of Canadians to enjoy home ownership.
However, we believe that the following conditions are key to the establishment of a sound competitive mortgage insurance market. First, all participants from the private sector offering mortgage insurance must be subject to the same rules and conditions and must only be allowed to intervene in this particular market. Real competition will only occur if all players operate on a level-playing field. Second, it is critical that mortgages not be subject to an anti-selection process. Such an approach would disadvantage home owners outside urban areas and more particularly rural residents. The framework governing the activities of such entities must therefore ensure that all mortgages will have an equal right to a guarantee.
In conclusion, we wish to reiterate our support to initiatives that encourage more competition in the mortgage insurance market. Thank you again for the opportunity to appear before you today.