There's no question that affordability varies a great deal across the regions. Therefore, we get really high mortgage debt in places where houses are more expensive, especially Vancouver, but Toronto was following in Vancouver's footsteps two years ago.
At that time, we had a very strong speculative element running through both markets: bidding wars, prices rising, multiple people bidding on a thing and the price going up enormously.
The presumption was, “I can still do this because I know I'll get the mortgage.” This was one of the symptoms of a period when interest rates had been very low for a very long time. People come to count on that. Throughout that period, there were of course other changes in policies: not just the interest rates, the B-20 guideline, but also some special taxes implemented in your own area, as well as in Toronto.
Disentangling what was responsible for what is basically not really possible. We think we have a handle on how much of an effect interest rates are having. Yes, they have a bigger impact on highly indebted households. You're absolutely right, and that's what Carolyn was speaking to.
In fairness, the stress test was designed to help people understand and test themselves as to whether they could cope with what seemed like a reasonable fluctuation in interest rates, of around 200 basis points. We've now done 125 basis points since the bottom. I would think that most people who went through that stress test would be saying, “I'm glad I can pass that test now that interest rates are rising.”
We were talking about it as a good personal practice long before the rules went into place. It was obvious to everyone that interest rates had been very low and would not sustainably stay there.