Canadian Banking and Mortgage Portfolio Overview slide image

Canadian Banking and Mortgage Portfolio Overview

Canadian Banking: Residential Mortgages High quality, diversified portfolio • Residential mortgage portfolio of $230 billion: 37% insured; LTV 54% on the uninsured book1 。 Mortgage business model is "originate to hold" o New originations² in Q1/20 had average LTV of 64.4% 。 Majority is freehold properties; condominiums represent approximately 13.9% of the portfolio ⚫ Three distinct distribution channels: all adjudicated under the same standards o 1. Broker (~61%); 2. Branch (~19%); and 3. Mobile Salesforce (~20%) 。 Our recently launched Scotiabank eHOME digital mortgage solution is emerging as our 4th distribution channel. Since the launch of eHOME, we have processed more than 2,800 mortgage applications. Most recently, we launched the ability for Canadians to get pre-approved online with a credit decision and a pre-approval letter in just minutes - another first for the industry. Over 1,200 preapproval applications have already been processed. We have also partnered with the Canadian Real Estate Association (CREA) to enable customers to search for a home directly within eHOME, making the entire home-buying journey digital 37% CANADIAN MORTGAGE PORTFOLIO: $230B (SPOT BALANCES AS AT Q1/20, $B) Insured Freehold $198B - Condos $32B - $119.4 $14.8 Total Portfolio: $230 billion $104.6 $43.0 $11.0 $30.7 $3.7 $32.0 $27.0 Ontario BC & Territories Alberta % of portfolio 51.9% $16.4 $14.5 Quebec $1.9 $11.1 $10.8 $9.4 $0.2 $0.7 $8.7 63% Atlantic Provinces Manitoba & Uninsured Saskatchewan 18.7% 13.4% 7.1% 4.8% 4.1% 1LTV 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 27 22
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