Thank you, Deputy Minister.
Thank you for the question.
I'll speak a bit to the new mortgage charter, which is, I think, what you're referring to.
This really brings together and highlights certain things with respect to mortgage holders who are under stress, those who hold mortgages on their principal residence. This is targeted at them. This is not for investors. This isn't for someone's second home; this is for their principal residence.
If there are Canadians who are at serious risk of defaulting and losing their home, there are things they should be able to expect from their financial institution, such as working with their financial institution to discuss lengthening amortization for a fixed period of time. That will reduce their payments, but they will want to get back to their amortization as soon as they're able to, because ultimately it's in their best financial interests to pay the debt off as quickly as possible.
This allows someone, if they are at risk of going into negative amortization, which can happen on some of the variable-rate loans you were referring to, to make lump sum payments without paying a fee on them.
It requires the financial institutions to reach out four to six months in advance of someone's mortgage coming due to discuss their options and to discuss different things that can be done for them or for those mortgagors in distress.
It also says that banks should not be putting interest on interest in cases of negative amortization.
Finally, it looks to banks and financial institutions in general—I should be clear—to waive fees or penalties on some of these actions that are taken to get the homeowner through this period of stress. It will help reduce the risk.