Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Home Capital Group Fourth Quarter 2021 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. Jill MacRae, head of investor relations, you may begin your conference. Thank you, Rob. Good morning, everyone, and thank you for joining us today. Our agenda for today's presentation is as follows. We'll begin the call with remarks from Yousry Bissada, Home's President and CEO. Brad Kotush, our CFO, will then review our financial performance, which will be followed by a question-and-answer period for participants. We have a few members of our senior management team with us on the call to help answer your questions. On behalf of those speaking today, I note that this call may contain forward-looking statements and that actual results could differ materially from forecasts, projections, or conclusions in these statements. Please refer to our advisory on forward-looking statements on page two of the presentation. I would also remind listeners that Home uses non-GAAP financial measures to arrive at adjusted results, and that management will be referring to both reported and adjusted results in their remarks. I'd now like to turn the call over to Yousry Bissada. Good morning, and thank you for joining us today for our 2021 fourth quarter and full year results conference call. In addition to our results, I'll also spend some time talking about what we see ahead of us in 2022. Let me start with what we announced today. We reported fully diluted net income per share of CAD 4.78 in 2021, an increase of 44% over 2020. This is the second straight year that we've reported year-over-year earnings growth above 40%. We achieved a 15.1% return on equity. We are pleased to announce the initiation of a regular quarterly common share dividend in the amount of CAD 0.15 per share. We grew our mortgage origination's by 27% year-over-year to nearly CAD 80.9 billion. Of that, our Alt-A mortgages were CAD 6.3 billion, an all-time record. Brad will share more details on the above. Over the last 4 years, we have delivered consistent increases in our earnings and our return on equity, as shown on slide 4. Our share price performance during that time is the highest of any of the banks. On the capital front, we returned over CAD 360 million to shareholders through our share repurchases, including our CAD 300 million substantial issuer bid completed at the end of December. In total, we bought back 8.9 million shares during the year, or about one-sixth of all the shares that were outstanding at the beginning of 2021. Looking back, 2021 was an eventful year. Once again, we began the year faced with uncertainty due to COVID. This time, informed and strengthened by our earlier experiences, we entered 2021 with confidence. This is because medical science has introduced vaccines that promise to make normal business operations possible. We had an even better understanding of the ways COVID has impacted the housing market. We knew how important it is for people to have the opportunity to buy and keep their homes. Our people have shown themselves to be capable and resilient in the face of constantly changing working conditions. Each of our business units rose to the challenge of a volatile year, starting with our sales and underwriting teams. They worked hard throughout the year and delivered impressive volume growth while staying within our risk appetite. That included a return to pre-pandemic underwriting conditions in all areas by mid-July. They delivered the quality of service that our broker partners have come to expect from us. At Investor Day, we shared information about how we value our broker partners and work with them. Our deposits and funding teams were equally active. Deposits through our Oaken channel grew by more than 10% during the year and now make up over 31% of our overall total deposits. We returned to the RMBS market with two cross-border offerings totaling CAD 765 million. We added a whole loan sale program for insured mortgages with a range of financial counter-parties and participated in a bank-sponsored securitization conduit. Our IT team implemented the transformation of our core mortgage banking system. We launched a mobile banking app for our Oaken customers and upgraded the functionality of our LOFT platform for better engagement with our broker partners. We are continuing to find ways to use robotic process automation to perform repetitive tasks. The benefits of Ignite, our internal multi-system upgrades, are not just process efficiencies, but an improvement in the type of work we're able to perform, including the quality of engagement with our brokers and customers. Our HR team led us in adapting to a virtual work-from-home, to a hybrid work from the office, and back to virtual work from home. Pivoting in our work environment has become the new norm. Even with these challenges, we won a number of best workplace awards, including best place for hybrid work this week we won. We are proud of our Home and of our culture. We welcomed Betty DeVita as a new director. Betty's years of experience in banking and payments make her a valuable asset to our board. On our leadership fronts, we added bench strength. In January of this year, we welcomed Brian Leland as EVP Underwriting. Brian comes to us with over 20 years experience in all aspects of building and growing residential mortgage teams. He started his career at Home Trust, and we're pleased to welcome him back. We also welcomed Mike Henry as our EVP of Digital and Strategy. As a senior executive with more than 25 years at a major bank, Mike brings strategic and deep financial service experience to our team. As we look ahead, we have reasons for optimism in 2022 as well. The housing market is starting 2022 the way it ended in 2021, with strong demand supported by low interest rates, growing consumer savings, and inter-generational support. Interest rates are still low, but are rising and expected to increase through the year. We're not too concerned at this point about the impact on credit quality from rising rates because of the cushion from the B20 stress test, along with our own prudent underwriting criteria. It is likely that higher rates will reduce, but not eliminate demand for home ownership. The impact of rising rates on affordability can also be mitigated by buyers changing the location or the size of their home purchase. We believe that the mortgage broker community is best suited to help Canadians understand the impact of these changes. Demand for homeownership is still strong, and it will be supported by growing immigration numbers, a growing cohort of millennials buying their first homes, and the return to employment growth. As working conditions evolve, we could see more transactions driven by changing housing needs. Our funding teams expanded our funding capabilities and have just issued our latest RMBS offering, benefiting from growing investor interest in this attractive instrument. On our capital strategy, we are on track. Following the completion of our SIB in December, we're announcing today that the TSX has approved our application for normal course issuer bid. This will make strategic share repurchases throughout the year as we work towards our stated target CET1 capital ratio of 14%-15%. We have a track record of success in this method of delivering value to our shareholders. In mid-2017, the company had over 80 million shares outstanding. As of December 31, 2021, we have bought back more than 37 million or over 45% of shares outstanding. Together with our strong operating performance, buybacks have been a key component of our shareholder value proposition. 2021 was a year in which Canadians continued to show how much they value home ownership. Here at Home, we're dedicated to helping them achieve it. Despite the changes in working conditions brought about by the path of the variants, we were consistent in our focus of serving our business partners, responding to the needs of our customers, and meeting our financial objectives and supporting our employees. In 2022, we are starting the year with a strong market, a strong capital base, an engaged group of employees, and a strong leadership team. We are ready to convey meaningful benefits to all our stakeholders while delivering value to our shareholders. I'll now invite Brad to discuss our financial results. Thank you, Yousry, and good morning, everyone. Starting on slide 7 this morning, we reported net income of CAD 52.7 million and diluted earnings of CAD 1.04 per share for the fourth quarter of 2021. Adjusting for items related to our Ignite program, net income for the quarter was CAD 53.7 million or CAD 1.06 per share. This will be the final quarter that we will be adjusting our reported results in relation to our Ignite program as it draws to a close in 2022. Full year 2021 earnings were CAD 244.7 million or CAD 4.78 per share. Our reported earnings per share increased by 43% over 2020, continuing our trend of delivering strong growth in earnings per share throughout a volatile period for the economy and the housing market. Book value per share, as shown on slide 8, grew by 12.7% year-over-year to CAD 36.55, and our return on equity was 12.4% during the quarter and 15.1% for the full year. Once again, we generated double-digit return on equity despite carrying significant capital above our target range for most of the year. Following the conclusion of our substantial issuer bid at the end of 2021, we ended the year with 18.43% in CET1 capital, moving closer to our target range of 14%-15%. Slide 9 shows the factors contributing to our growth and earnings per share for the full year. Our net interest margin was 2.56% for the year, compared with 2.46% in 2020. The year-over-year increase in NIM is mainly due to lower funding costs and added 26 cents to our earnings growth, somewhat offset by a decrease in non-interest income. Reduction in non-interest expense added a further 19 cents. Overall, pre-tax, pre-provision net income increased by 10% over 2020. Looking at provisions, the change from a provisions expense in 2020 to a recovery of credit provisions added 94 cents to earnings per share. A 3% reduction in the number of average shares outstanding during the year contributed 13 cents. Our expectation, based on our current outlook for interest rates, asset mix, and competition with other lenders, is that there will be a decrease in our net interest margin in 2022, and the impact on net interest income will be offset by higher loan balances. Looking at our lending operations on slide 10, originations in our single-family residential portfolio grew by 52% in the fourth quarter, 44% for the year. Commercial originations on slide 9 increased in the fourth quarter but decreased during the year. Commercial originations got off to a slow start in Q1 and Q2, partly due to pandemic underwriting conditions and planned reductions in some loan categories, but increased in every successive quarter. We are feeling positive about the opportunities in commercial lending in 2022. As of the end of the year, single-family residential loans on balance sheet had increased by 8% to CAD 16.2 billion through robust origination volume and retention efforts. Commercial on-balance sheet loans declined to CAD 1.8 billion, with the largest year-over-year reduction in exposure to retail stores. Deposits gathered through our Oaken channel grew by more than 10% during 2021 and make up more than 31% of our total deposit funding. Significantly, deposits gathered through deposit brokers decreased year-over-year as we were able to diversify our funding sources. Oaken savings accounts were just under 24% of total Oaken deposits at the end of the year. We expect the percentage of demand deposits to decrease as higher interest rates make term instruments more attractive and as a reopening of retail, entertainment, and travel options give customers more outlets to spend the cash balances they built up during pandemic restrictions. We are getting good customer response to our digital banking app and look forward to further continuous agile enhancements to this app. During the year, Home made significant progress in our objective of diversifying our funding base. We executed whole loan sales of our insured mortgages with several financial counter-parties, participated in a bank-sponsored securitization conduit, and completed two successful cross-border offerings of residential mortgage-backed securities. In 2022, our funding initiatives are gaining momentum. We have doubled the size of securitization conduit to CAD 500 million, and it will be an effective source of funding for our classic mortgages. We have just priced the first RMBS offering of 2022. The A tranche of CAD 425 million was priced at 2.63% and is expected to close on February 23. We continue to see strong credit performance in Q4, even while the Omicron variant added uncertainty to the outlook for economic recovery. The base case inputs to our economic model show an improvement in employment through the year and modest appreciation in housing prices. After reporting reversals of credit provisions for the first three quarters of the year, we had provisions for credit losses of about CAD 1 million in the fourth quarter, or 2 basis points of gross loans on an annualized basis. There was a modest reversal in provisions on impaired loans identified as Stage 3 and a provision of CAD 1.3 million in our loans designated as Stage 1 and Stage 2 in both our single-family residential and our commercial loan portfolios. Going forward, we expect credit provisions on both our retail and commercial portfolios to be similar to pre-pandemic levels. Net write-offs for the year were CAD 0.6 million, or less than 1 basis point of gross loans. Looking at the full year, we booked a reversal of credit provisions on Stage 3 loans totaling CAD 10.3 million and a provision reversal of CAD 23.4 million on performing loans, for a total of CAD 33.7 million. This was due to the impact of an improvement in the forward-looking economic models used to estimate credit losses, loan repayments, and a lower balance of loans in Stage 3. Slide 16 shows details of our allowance coverage. Total allowance for credit losses was CAD 36.5 million at the end of 2021, which is a decrease of 48% from the total of CAD 78.8 million one year earlier. Approximately 80% of the allowance is attributable to Stage 1 and Stage 2 loans. Allowance coverage of non-performing loans increased to 22.8% as of December 31. Turning to slide 17, we have provided details of our non-performing loans by business line. Our credit quality continues to be strong, reflecting a steady improvement from previous quarters. Net non-performing loans at the end of the year have declined substantially in both dollars and percentage terms, and now represent only 13 basis points of our total loans outstanding. This is a credit to our sales and underwriting teams and to the risk culture of the company as a whole. We concluded a CAD 300 million substantial issuer bid at the end of the year. For the full year, Home repurchased 8.9 million shares at an average price of CAD 41.13 per share through the SIB and NCIB. We ended with a CET1 capital ratio of 18.43%, which is still above our stated target range. The renewed normal course issuer bid that Yousry referred to will allow us to repurchase up to approximately 3.7 million shares as part of our program to reach our target capital range. The dividend that we announced today is another way of delivering value to shareholders. We have said consistently that we would introduce a common share dividend when it made sense. Having made material progress toward our target capital ratio, the board and management believe that the company and its shareholders would benefit from a regular quarterly dividend. The initial dividend is set at CAD 0.15 per share, payable on March 31, 2022 to shareholders of record as of March 15, 2022. This payout is sustainable with potential for growth over time. The board reviews its capital strategy on an ongoing basis and will look at all opportunities to achieve a CET1 within our stated target range by the end of the year. Now, I will ask the operator to poll for questions. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Étienne Ricard from BMO Capital Markets. Your line is open. Thank you, and good morning. Morning. The 2022 outlook is guiding towards declining net interest margins. First, are you expecting net interest margin increases relative to Q4 or annual 2021 levels? Second, is the focus on capturing higher origination volumes aimed at gaining market share? In other words, what do you estimate your current market share to be relative to your target level? Um, Sorry, again, go ahead. It's Yousry. I 'll answer first, and then Brad might add this on the market share. It's not to gain market share. It is just as rates increase, as Canada's increase, deposits react very quickly. Mortgage rates react a little slower. There are competitive regions. There's a lot of people trying to get mortgages. Someone has to take the lead. As that happens, you get deposit rates going up and mortgages lagging somewhat. That's what causes that. It's not so much the market rate. We've typically been the highest rates in the Alt-A area and competitive in the A area. We would expect to maintain that. If interest rates go up quickly, you have to reset mortgages quickly. If they go up slowly, it's much more manageable. The reverse happens in other environments. When rates go down, mortgages are the last to go down, and it widens spreads for all lenders. Brad? The specific answer to your question is off of the Q4 NIM that we reported. What's been happening is what we've seen in our market is that the rise in the overall deposit cost, which is based typically off the government curves, has increased, and we haven't seen behavior of rate increases. There has been a very significant volume of origination. To stay competitive and relevant, we can only raise rates so much. We consider to have been leading the way in rate increases this quarter. The path that we see is certainly the announcement today. Bank of Canada expects to raise rates. We saw rates go up on the curve 10 basis points. What's offsetting the decrease in NIM is really record originations in our classic business. We're seeing substantial loan growth. Based on our estimates and what we know for the year, we're projecting for the year, even if NIM decreases, we'll achieve the same level of net interest income. Great. Thank you. I guess as a follow-up, when would you expect Alt-A mortgage rates to start increasing and, you know, match the increase in deposit costs? I think that's a process that's gonna take time. What I can say is we have raised rates, and we'll continue to raise rates to match increase in deposits. What happened was there was probably around a 2.5-month to 3-month lag in matching those increases. We're playing a bit of catch-up, and I think that's something that we've consistently said in relation to Alt-A, where it takes some time for rates to move, and it does appear as the competition in the market is also looking to gain market share. Based on what we know, we are the price leader in terms of moving up mortgage rates, and we have to adapt to those circumstances and to continue being relevant to our customers and mortgage brokers. Okay. On the funding side, we've talked about Oaken and, you know, RMBS issuances in the past. As we look into 2022, could you remind us of your priorities as it relates to driving cost of funding improvement? Well, we will continue. We showed great progress in diversifying our funding sources. We're gonna continue down that path. I did mention in our call that we have just priced an RMBS. We expect to continue to be programmatic issuers subject to market conditions. We issued the RMBS in a particularly volatile market, and what we hope is that some of the uncertainties related to factors outside of our control that are happening in the broader world will. What we all hope is none of those issues manifest themselves and that there'll be a more stable market. Again, we're looking at further ABCP conduits and other RMBS issuance. To the extent that we could explore the market for deposit notes, we work towards that. We're really trying to access all sources of funding and again, part of our whole wholesale program is to make sure that it's effective on creating value. We need to see some increase in the spreads on our Accelerator mortgages to really get back into that program. We do see a lot of potential. Thank you for your comments. Your next question comes from the line of Jaeme Gloyn from National Bank Financial. Your line is open. Yeah, thanks. First question, I wanted to just get into the thought process behind this sizing the dividend. How should we think about that dividend going forward? Is this something that you would seek to increase quarterly, semi-annually, annually? Maybe a little bit more color around the strategy for the dividend. Yeah, sure Jaeme. Our strategy is to keep it consistent for the year. However, that may change subject to circumstances and those circumstances will probably be more biased to an increase. We fully expect to keep it constant for this year based on the decisions that were made by the board at its most recent meeting. There is also an expectation that we will be increasing that on an annual basis. That's our current plan on reviewing the level of common share dividend, and it's gonna be based on what we think is happening in terms of book growth, market conditions, and all the other factors that you would expect a board to consider in making a decision related to a recurring dividend. Okay, great. And then on the factors that went into sizing the dividend, it looks to me like it's at the low double digits percentage basis on a payout ratio versus EPS. What led you to start with that level of a payout ratio or any other considerations that were factored into the decision? We still think that our shares are undervalued, so we're gonna buy them back and are devoting capital to those sorts of repurchases. But we did think it was the appropriate time to start a recurring dividend. That's why we picked a relatively low payout ratio. Historically, the company paid between 20%-25% when it was not, I think there were a couple of NCIBs and SIBs, but primarily, most of the return of capital was done through dividends. Thinking years ahead, that's probably a place that we would get to. Okay, great. Yeah, that's fair enough. The Ignite program or Ignite cost expenses, it seems like it's extending a couple of quarters. I believe the previous guidance was that it would wrap up in Q2 '22. Now it seems like it's gonna go through all of 2022. Can you give us a little bit more details as to why it's extending? What other initiatives might have been added to the program? Or what's causing delays? A little more detail on that please. Yeah, sure, Jaeme. We still think it's gonna be done midway through the year. If we gave the impression that it was gonna be a full year, like saying it would end in 2022, I'll correct that now. We think it's gonna be largely complete in the first half of the year. Why we're saying we're not gonna be reporting adjusted earnings anymore is the more meaningful aspects of it to give a look at the underlying business, which was a purpose for reporting the adjusted earnings, aren't really relevant in looking at it. Okay, great. So from the first question, it sounds like the guidance or the expectation for 2022 is that net interest income on a dollar basis should be pretty flat in 2022 versus 2021, given some of the NIM decline guidance overall. Is that a fair characterization for net interest income? Then, some follow-ups just in terms of the movements within that. I think that's right. Jaeme based on what we know today, there's a lot of things that can change over time, but that's our current thinking. The components of that are really working through getting back to the mean in terms of spread over deposits. That has been compressed, and as I said earlier, we have been leading with price increases so far this quarter, and we'll continue to work towards getting back to the historical levels of spread on classic originations. Okay. In terms of how you're going to market, can you elaborate on the pricing strategy or like what goes in, what factors into how you're pricing the mortgages? Are you targeting a specific ROE outcome? What are the inputs and drivers of determining the ultimate rate? Hi, Jaeme. It's Yousry Bissada. Ultimately, we're driving towards the ROE targets, which subsection is NIM, which a subsection is the spread obviously between deposits and mortgages. This is a very normal thing when interest rates are going up, is that deposits reset quickly. Government account bonds reset instantly. Deposits reset almost right away. It's the mortgages that lag. As we've said, we are leaders in stretching it. We wanna get back to normal. The slower interest rates move up, the faster we can get to the mean between mortgage and deposits. As they, you can go up today, and then tomorrow, deposits go up again, then you got another increase. I assume we're gonna probably lead the way of trying to get the spreads to normal, and we'll get there. It's just how fast that happens. Yes, ultimately driven by ROE, ultimately driven by NIM. There's a whole bunch of metrics behind what it should be and how fast we can get ourselves there. Right. Are you pricing to a ROE target of 15%, 16% view? What is that ROE target or true north that you're looking to achieve in any deal? Well, our goal, Jaeme, is mid-teens ROE, so that'll move around. Fifteen is a goal of ours, and we achieved it this year, and we'll certainly work towards achieving it in 2022. There's a whole bunch of work that we have to do to get there this year, including managing the spread on classic originations. Keep in mind it is competitive, so we need to be relevant, and we can't simply wave a wand ourselves to move the market. We're definitely trying. Okay. Got it. Last one for me just. James, sorry. I'm gonna have to ask you to re-queue, James, because there's other people in the queue and, yeah. We will pick you up at the end, if that's all right. Your next question comes from the line of Nigel D'Souza from Veritas Investment Research. Your line is open. Thank you. Good morning. I just had a couple quick questions on your margins here. I noticed that there was a decline quarter-over-quarter, seems to have been largely driven by single-family residential mortgages and a lower yield there. I think I heard you correctly. Is that just mainly driven by the new originations in the quarter at a lower rate? Could you provide some color on what drove the decline? That is the primary reason, the originations coming in at lower spreads. Our retention rates are working relatively well in terms of our expectations, but that is the case. Okay, great. Just on term deposits, if I could maybe get some insights on the pricing dynamics in the rising rate environment. I think you mentioned that rising rates are attractive from a market dynamic standpoint for your term deposit funding. In terms of pricing, you know, compared to lower rate term deposits on the market, does the spread between your term rates and competitive term rates narrow in a rising rate environment? Is it maintained? Could you just kind of shed some color on how the pricing dynamics might play out? When we look at our pricing, we do have competitive pressure, certainly on the broker deposit, but in relation to Oaken and others, when we evaluate how we're doing, we look at how we're doing based off the spread of a government curve. Okay. Okay, that's helpful. If I could just pivot quickly to capital. When I look at your current capital level, assuming you action that NCIB, that still doesn't get you to your 14%-15% CET1 target range. Even with the dividend payout, you're still gonna have some internal capital generation. Do you have any comments on what bridges, I guess, the final remaining excess capital from where we might end up to your target range over the next year? You're right. There is a gap to get there. Part of it's gonna be filled with what we're thinking is growth in our balance sheet and risk-weighted assets. So that's gonna absorb some of it. When we get closer to the end of the year, we'll evaluate whether it makes sense to retain capital to fund future growth, or you know, look at higher rate dividends in the next year. What we're really trying to do is work towards the range in the best way that's going to create value for shareholders. Looking at it now, we'll know as we progress throughout the year what the best alternative would be. For example, another choice could be another substantial issuer bid, and that's the potential to get there relatively quickly with one transaction. Okay. Last quick question. Any comments on the decision of deciding to pursue NCIB versus an SIB? I mean, look at your current share price. It's below the average SIB purchase price that you recently completed. Is there, you know, a rationale that makes NCIB more attractive in current environment or how'd you think about that? Well, I think we have a good opportunity to utilize the NCIB and the ability to have a more discretionary aspect to when we're repurchasing shares, and not having to pay the premium on an SIB, led us to maximize an NCIB over immediately putting together another SIB. Okay. That's helpful. That's it for me. Thank you. Your next question comes from the line of Graham Ryding from TD Securities. Your line is open. Good morning. Just appreciate the color on, you know, the offset of, you know, lower NIM but higher loan growth. You think net interest income hopefully will be flat in 2022. Just wondering what sort of loan growth are you targeting for 2022? What do you think the business is capable of given your outlook? We're capable of close to 20%. 20% loan growth? Yeah. TLA. Okay. That's a pretty material increase from, I think you had 5% this year. What drives that uptick? Originations. The continuing high growth of originations in our classic portfolio, residential portfolio and commercial portfolio. Retention. Okay. You know, obviously, you talked about some spread compression on the classic side of your business. What about on the commercial side? Are you seeing any spread compression there, or NIM's holding okay on that side of your business? There has been a little, but not to the extent on the residential side. That's more because commercial price deal by deal, whereas single family, you know, you price it and a whole bunch of deals arrive. Got it. Understood. Then my last question is there's a slight increase in your commercial impairments. Any color behind what was behind that? No, it's just there are individual loans of size, so if anything moves in any of those, you're gonna show a change. We consider ourselves to be very well provided. Looking at the trend over the year, we've shown a substantial reduction in those provisions, so it's not unexpected that we would see some variability or volatility there. Yep, that's fair. That's it for me. Thank you. We have a follow-up question from the line of Jaeme Gloyn from National Bank Financial. Your line is open. Yeah, thank you. I did want to- Not so fast, Jaeme. Thank you. Just wanted to dig into the, I guess, two main subsectors of the NIM forecast. So we completed the latest RMBS transaction. Can you compare the spread on that transaction, so mortgage rates versus the cost of that RMBS deal versus the previous deals? Is that going to be accretive to the spread on securitized assets or dilutive? It may be slightly diluted, but again, over time, we'll see where overall rates move because this, you know, the RMBS is an amortizing facility, so depending on the renewals in there, it may turn out to be an attractive long-term funding for us, James. We really do like the RMBS as a funding mechanism. We issued it in a pretty volatile environment so the spread over the curve was higher on this transaction than our last transaction. Based on what we've heard in the market, the spreads on these types of vehicles have expanded. We did the last one at 85 over, and this one was done at 105 over. Okay. Still tighter than the one prior to that. I guess the bottom line is there's some dilution on the securitized side, but the biggest NIM pressure is gonna be coming from non-securitized loans in 2022. Going back to Graham's question about the 20% loan growth forecast, or I don't know if it was a forecast or it was a capacity question. Maybe just a little bit of clarity. Is that what you're baking in for, you know, providing that guidance of flat NII? Is that you will have 20% loan growth overall? How do you think about breaking that down between single family residential mortgages and non-resi commercial mortgages or other products? I think right now we're comfortable with saying that overall level of growth and that level of net interest income. Okay. Great. I think that's it for me. Thank you. Your next question comes from the line of Nigel D'Souza from Veritas Investment Research. Your line is open. Thanks for taking my follow-up. I wanted to touch on another dynamic in a rising rate environment. I was wondering if you could expand on how sensitive the retention rates are in a rising rate environment. I mean, I know the interplay between the prime space and the near prime space for your mortgage book. So maybe you could color that, you know, in the context of between 100 basis points or 200 basis points increase, how meaningful of a difference does that make to retention? We both want to answer. In retention, it's a little bit different. It's a little bit stickier in a rising rate environment. People would have to requalify under a higher rate elsewhere. You mentioned people who are moving from Alt-A to A, that's a little more competitive on the renewal side. We're getting better and better at offering our own Alt-A clients an A to keep them. It generally drives higher retention. Generally. I assume the higher retention rate assumption is baked into your loan growth outlook as well. Is that fair? Yes. Okay. That's it for me. Thank you. Your next question comes from the line of Stephen Boland from Raymond James. Your line is open. Thanks. Just a quick question. Just in terms of borrowing behavior, have you seen any change in demand for different lengths of mortgages, with the anticipation of rates moving up? Have things moved out, more demand for fixed? Anything like that in terms of borrower behavior? Yeah. Hi, Steven. It's Yousry. A little bit. We've seen, typically on Alt-A, a client will take a 1-year mortgage, because they believe they might be at A in a year or want to keep their circumstances later. We're seeing a bit of shift to 2- and even 3-year on Alt-A. On the A side, 5-year is the most common term, and that continues to be the same. You mentioned that you have been adjusting, you know, rates, LTVs, things of that sort. Can you just give a little bit more color in terms of geography, loan-to-value adjustments that you've had, especially I guess GTA, where the markets are pretty hot. Yeah. I don't know, Steven, if you're referring to that when initially the lockdowns came in 2020, we pulled back in certain areas and we pulled back certain loan-to-values. In mid-2021, we're back to our normal loan-to-values. In fact, since July 2021, we've added areas that we loan. We've added FSA that we lend to. We've expanded. As the dynamics are shifting on where people are buying homes, they're actually redefining where major urban centers are. We're just looking back, we study it exhaustively, we look at liquidity to understand the market, and then when we get comfortable, we expand. Today we are lending more than we would have last year and certainly more than we would have in 2020 and back to our full risk appetite adjustments of LTV, which is generally up to 80% on Alt-A. Okay. Again, you're not concerned with you know, the rising, you know, average prices here, especially in the GTA, like that. You're still comfortable with your levels. We are comfortable because in our risk appetite, the first thing is we qualify the borrower at what they want to borrow irrespective of LTV. That has to check before we look at the LTV and the prices and so on. We get comfortable that person can carry that mortgage first, so that gives us a lot. We have to be comfortable of the certainty of the income in the term of the mortgage. That being the first check that has to pass, then we look at the loan's value and what the appraisal is. Okay. Thanks, Yousry. Yeah. Again, if you would like to ask a question, press star then the number one on your telephone keypad. There are no further questions at this time. Mr. Yousry Bissada, I turn the call back over to you for some closing remarks. Thank you, Rob. As you can see, we're moving forward with a lot of momentum in all our business areas. We'll continue to execute our strategy to grow business while returning capital to our shareholders through our NCIB and common shares. Thank you all for attending, and we look forward to speaking with you again soon.