Canadian Economic and Housing Policy Overview slide image

Canadian Economic and Housing Policy Overview

Canadian Banking: Residential Mortgages High quality, diversified portfolio • Residential mortgage portfolio of $216 billion: 42% insured; LTV 55% on the uninsured book¹ 。 Mortgage business model is "originate to hold" 。 New originations² had average LTV of 64% in Q1/19 。 Majority is freehold properties; condominiums represent approximately 13% of the portfolio • Three distinct distribution channels: All adjudicated under the same standards 。 1. Broker (~59%); 2. Branch (-20%); and 3. Mobile Salesforce (~21%) CANADIAN MORTGAGE PORTFOLIO: $216B (SPOT BALANCES AS AT Q1/19, $B) Freehold $188B Condos $28B $109.2 42% Insured $12.6 Total Portfolio: $216 billion $96.6 $39.2 $9.5 $30.8 $3.6 $16.0 $29.8 $27.2 $1.8 $14.2 $11.3 $11.1 $0.2 $9.5 $8.8 $0.7 58% Uninsured Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan % of 50.5% 18.1% 14.3% 7.4% 5.3% 4.4% portfolio 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data 2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions Scotiabank® 19
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