Thank you very much.

Mr. Chair and committee members, hello.

Thank you for inviting me back today, this time in support of your analysis of the public policy decisions and market forces that have led to increases in the cost of buying or renting a home in Canada.

As outlined in our recently published annual risk outlook, we remain intently focused on the key risks facing the Canadian financial system, including real estate secured lending and mortgage risks, wholesale credit risks, funding and liquidity risks, and integrity and security risks related to the geopolitical environment.

With respect to the topic under investigation by this committee, I note that higher mortgage payments are taking up a larger part of some households' incomes, leading to more borrowers finding it difficult to pay their loans and debts. We expect rising debt service costs to be a key risk for financial institutions and their customers for the next two years. Having said that, I note that mortgage and household credit quality remains high by historical standards.

The Office of the Superintendent of Financial Institutions, or OSFI, along with its federal partners, wants Canadians to access and maintain mortgages throughout the ups and downs of market cycles.

Part of my role is to ensure that lenders exercise prudence in underwriting mortgages and sound risk management practices throughout the lifecycle of those loans.

We believe OSFI's prudential rules for mortgage lending foster a safe, stable financial system and will help keep Canadians in their homes over the long term.

It's our job to make sure that lenders remain resilient while adapting to evolving risks in financial markets.

With that said, I'll be pleased to take your questions.