Q4 2019 Financial Performance

Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market 2016 2017 2018 2019 Canada: Qualifying stress rate for all new mortgage insurance must be the greater of the contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate • Low-ratio mortgage insurance eligibility requirements updated for lenders wishing to use portfolio insurance: • . • 。 Maximum amortization 25 years o CAD 1mn max. purchase price Minimum credit score of 600 o Owner-occupied property Elimination of primary residence tax exemption for foreign buyers Min. down payment on insured increased from 5% to 10% (for homes CAD 0.5-1.0 mn) British Columbia: 15% land transfer tax on non-resident purchases in Metro Vancouver introduced Ontario: 16 measures aimed to slow rate of house price appreciation Key aspects include: o 15% non-resident speculation tax o Expanded rent control to all private rental units in Ontario 。 Vacant home tax CAD 125 mn five-year program to encourage construction of new rental apartment buildings Canada: OSFI imposes more stringent stress tests for uninsured mortgages, including a minimum qualifying rate at the greater of the five-year fixed posted rate or the contractual rate plus 200 bps, effective January 1, 2018 • Ontario: Elimination of rent control on new rental units first occupied on or before November 1, 2018 . British Columbia: Extension of the Property Transfer Tax on non-resident buyers. Investment of more than CAD 1.6 bn through FY2021 toward the goal of building 114,000 affordable housing units in the next 10 years • British Columbia: Increase in speculation tax on foreign and domestic home owners who do not pay income tax in BC from 0.5% of a property's assessed value to 2%; additional school tax levied on portion of a property's value that exceeds CAD 3 mn Ontario: Measures to increase supply of available housing Key aspects include: Greater authority over land use planning decisions for the province's independent municipal dispute resolution body Reduced red tape on new residential developments Updated zoning regulations to facilitate building of affordable homes near transit 75

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