2020 Economic Outlook

The Toronto and Vancouver downtown condo markets ■ Constraints on undeveloped land around Toronto / Vancouver have contributed to a shift to higher-density condo housing Provincial growth plan, including ‘Green belt' surrounding Toronto, contains urban sprawl and favours condo development Vancouver is restricted in its ability for urban sprawl due to land constraints away from the city centre ■ Canada has one of the highest per capita rates of permanent immigration in the world(1) - 22% of Canada's population is foreign born (7.5 MM), highest proportion among the G8 nations (1) - - 56% of all new immigrants to Canada move to Toronto, Vancouver or Montreal(1) ■ RBC's exposure to condo development is limited – about 3% of our Canadian commercial loan book (2) - - Condo exposure is 10.6% of Canadian residential lending portfolio (2)(3) "Green Belt" Surrounding Greater Toronto Area Lake Simcoe Lake Ontario CANADA USA Vancouver Limited by Mountains, Sea, U.S. Border о cal Reserve 1A Mt Seymour Provincial Park North Vancouver District VANCOUVER Pacific Spirit Regional Park 99 91A Richmond (1) Statistics Canada, 2016 Census. (2) As at January 31, 2020. (3) Based on $268BN in residential mortgages and HELOC in Canadian Banking ($38BN). 38 | CANADIAN HOUSING MARKET 17 Belcarra Regional Park Pinecone Lake-Burke Mountain Park Coquitlam Maple Ridge New Westminster Langley Twp Surrey 10 Delta 99 Point Roberts White Rock Campbell Valley Regional Park 15 13 539 RBC

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