Economic Backdrop and Financial Performance Objectives

- Legislation and policies – promoting a healthy Canadian housing market February 2024 - Government of Canada Ban on foreign buyers of non-recreational residential properties extended to January 2027. September 2023 - Government of Canada Enhancement to the GST New Residential Rental Property rebate, raising the rebate percentage to 100% and eliminating the ceiling on qualified rental units' value ■ The move was matched by New Brunswick, Newfoundland & Labrador, Nova Scotia, Ontario and PEI on their portion of the HST January 2023 - Government of Canada Two-year ban on foreign buyers of non-recreational residential properties came into effect Anti-flipping tax applying to capital gains made on principal residences bought and sold within less than 12 months came into effect October 2022 - Government of Ontario ■ Raised the non-resident speculation tax from 20% to 25% April 2022 Government of Canada All assignment sales of newly constructed homes became fully taxable for GST/HST purposes on May 7, 2022 Federal government will engage with provinces and territories to develop and implement a buyer's bill of rights March 2022 Government of Ontario ■ - Expanded the non-resident speculation tax to the entire province and raised the rate from 15% to 20% March 2022 - Government of Nova Scotia ■ Introduced a 5% non-resident provincial deed transfer tax (effective April 1, 2022) June 2021 - OSFI, Department of Finance The stress test qualifying rate for insured and uninsured mortgages changed to the client rate plus 2 percentage points or 5.25%, whichever is greater 45 CANADIAN HOUSING MARKET RBC

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