CIBC Investor Presentation
Mortgage Market Performance and Urbanisation Rates
1
Canadian mortgages consistently outperform U.S. and
U.K. mortgages
Low defaults and arrears reflect the strong Canadian credit culture
Mortgage interest is generally not tax deductible, resulting in an incentive
for mortgagors to limit their amount of mortgage debt
In most provinces, lenders have robust legal recourse to recoup losses
Mortgage arrears have steadily declined from high of 0.45% in 2009 to
0.23% in February 20211
Source: Canadian Banker's Association
Population in Top Four Cities
Canada has one of the highest urbanisation rates
in the G7
Almost 40% of the Canadian population lives in one of the four
largest cities
A greater rate of urbanisation is a strong contributor to
increases in property values
Source: CML Research, CBA, MBA. *Mortgage arrears of 3+ months in
Canada and UK or in foreclosure process in the US
2001
2002
2003
2004
2005
2006
2007
2008
5.0%
4.5%
-Canada
.U.K.
.U.S.
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2009
2010
2011
Mortgage Arrears by Number of Mortgages
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
40%
35%
30%
% of Population
25%
20%
15%
² 10%
5%
0%
Canada
U.K.
U.S.
Germany
France
Source: 2014 Census for France, 2016 Census for Canada, 2011 Census for UK,
Germany; 2010 Census for US
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