Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

Perhaps Mr. Maguire will respond to my query in the second round. The delegation is opposed to mortgage insurance so I shall focus on Central Bank matters. The Central Bank allows for a 15% deviation on the rate whether it is 85% or 80%, as suggested. Should the deviation be for homes that are capped or for first-time buyers? Has the delegation views on the matter? Recently I had an opportunity to spend 24 hours in Canada. In a couple of years' time I do not think we will be talking about Canada as an example for anything as I think it is in for another big shock and a lot of people will be hit hard as a result. I would like the delegation to focus on my question on the 15% deviation.

I think Mr. Deeter mentioned that the loan to value ratio breaks the link between income and the value of a house. It is my understanding that this insurance model supports the banks but not the individual and it will be very rare that one will end up in one's own house. The insurance model will ensure one does not lose one's home. If one has a lower loan to value ratio there is more likelihood that one will stay in one's house even if the economy and house prices collapse. That is a protection afforded by the scheme although difficulties will still exist.

Income limits have been retained. Do income limits not maintain the link between income, which is never certain in the future, and the value of a house? I know my comments are jumbled. I think it was Mr. Deeter who mentioned breaking the link between income and the value of a house and, therefore, I ask him to tease out the matter.