That's greatly appreciated, Mr. Chair.
Madam Vice-Governor, you mentioned the macroprudential measures that OSFI has instituted for mortgages that are low loan-to-value; that is, where down payments of greater than 20% are made.
I met today with mortgage brokers who made the point—a point that was also made in the Globe business report earlier this week—that these measures, combined with the uninsured nature of higher down payment mortgages, in many cases lead to higher interest rates for those with bigger down payments than they would pay if they made smaller down payments. That creates a strange perverse incentive to put fewer dollars down on one's house.
I think all of us would agree that we should be promoting bigger down payments because they're less risky to the system and to the borrower.
Do you worry at all about some perverse incentives that may result from OSFI's recent regulations?