Investor Day Summary
CANADIAN MORTGAGE MARKET
⚫ Canadian housing market is relatively less expensive
compared with its global peers, particularly for buyers
with U.S. dollars
•
⚫ Mortgage holders
о
No negative equity mortgages in Canada
High Percentage of Equity
(real estate equity as % of
real estate assets)
Official (excludes HELOCS)
о
89% of borrowers have 75% or less LTV. Significant price decreases
required to reach a negative equity position
。 Share of non-recourse mortgages are low (6-7% of total Canadian
mortgages at most) and isolated to only Alberta (excluding high-LTV
mortgages) and Saskatchewan.
。 High share of equity: average equity ratio is 74% (excluding HELOC's)
о
On average, only 40% of available HELOC credit is drawn, 60% is undrawn
Approximately half of first-time home buyers in Canada are able to source
their down payments from their personal savings
• 2014-16 data show 75% of buyers from that period have
25% or more equity
。 Partly reflects speed of rising house prices, but also stepped-up down
payment requirements and tightened mortgage rules
2014-16 data indicate only 39% of first-time home buyers
had less than 20% down
• Efforts to cool the housing market are working, which
implies moderating price appreciation
80
%
75
70
65
60
55
50
45
10
40
35
Cda estimate
including HELOCS
US estimate
with NFPs
excluding
HELOCS
Official FRB with NFPS
(includes HELOCs)
90 92 94 96 98 00 02 04 06 08 10 12 14 16
Sources: Scotiabank Economics, OSFI, FCAC,
Statistics Canada, Federal Reserve Board.
Scotiabank | 44View entire presentation