Mr. Karl Deeter:

Part of the issue is the behaviour of credit when every unit of supply is marginal. At the moment we do not have a huge vacancy rate so every additional housing unit means all housing units are occupied. In other words, if someone moves into a unit then he or she has moved out of another one. It is very much just people moving around. The market is trying to cope with the excess demand that exists.

In terms of a wave of credit, the present underwriting standards will not allow a person to go wild. I can say that because I know the underwriting standards. I am probably unique in this room due to having that bit of information. One must be able to strongly justify one's case and have a proven ability. They deduct money if one has kids. They deduct money or one's affordability left and right. These are stress tested loans. Let us not forget that the Central Bank already stress tests credit. This scheme is based on high variable rates. It is not some kind of special rate that lets one leap over and get some big wall of reckless credit. There is none because one cannot get it.