Mr. Paul Joyce:

With regard to the supply issue, let me quote again the article I referred to earlier on the Canadian experience. The journalist states:

It [mortgage insurance] is one of the reasons why Canadian banks continued to lend mortgages even in the tumultuous years after the financial crisis. Thanks to that, spending on homes and construction has given the economy a big hand.

Therefore, there would seem to be a supply effect. However, the journalist also states:

But mortgage insurance has also inflated home prices by allowing people to buy homes they otherwise couldn’t afford. If the market were ever to crash, those who have overextended themselves will be hit hard.

While it improves matters on the supply side, the consequences in terms of house prices, potential over-indebtedness and arrears must be borne in mind.
Senator Byrne asked earlier whether this prevents repossession. That is a really important question but I do not believe any of us has a concrete answer to it.