When you look at it, certainly, if you are on the side that thinks the stress test is very good, you would say, “Look at the arrears rate.” Conversely, if you are on the side that thinks we need more Canadians able to buy homes, you'd say that the arrears rate is at a historical low. We've gone too far. It's finding that happy medium.
There's been a lot of talk, ever since it came in, saying that it was a little too strenuous and it should be adjusted. One of the ways we've always suggested it be adjusted is that it be ratcheted down with longer-term mortgages. Right now, a five-year fixed mortgage is the most common, and we don't see much of seven-year and 10-year mortgages.
However, if we were to ratchet down the stress test to around seven-year and 10-year terms, you could encourage people to lock in for longer. It creates more stability in the marketplace. By the time they're at seven or 10 years, household incomes have probably gone way up and you have much more equity in your home. You're in a much better financial position, and you've taken away a lot of the risk while creating stability in the market.
That would be one of our recommendations around the stress test.