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Investor Presentaiton

Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market 2019 ⚫ 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. 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 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 • 2017 Ontario: 16 measures aimed to ⚫ slow rate of house price appreciation Key aspects include: 。 15% non-resident speculation tax 。 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 2016 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 1 mn maximum purchase price 。 Minimum credit score of 600 。 Property must be owner occupied Elimination of primary residence tax exemption for foreign buyers • Minimum down payment on insured mortgages on homes valued CAD 0.5-1 mn increased from 5% to 10% British Columbia: 15% land transfer tax on non-resident purchases in Metro Vancouver introduced Scotiabank® 33 33
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