Mr. Brendan Burgess:

There should be a limit of 80% generally. In particular, it should be on people who are buying a second home. Nobody buying a second home or trading up should borrow more than 80%. By definition, second time buyers would not need mortgage indemnity insurance. In the longer term I would like to see a limit of 80% on first time buyers. I am surprised Dr. Lyons suggested that if we reduced the limit to 80% now it would not affect the supply of housing. My gut feeling is that it would affect supply. I would make an exception to the 80% limit for first time buyers and, probably, for new houses. However, I like the overall limit of 80% and if a mortgage indemnity guarantee is introduced, it could only be for first time buyers because they would be the only people allowed to borrow more than 80%.