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Investor Presentaiton

Mortgage Policy Developments in Canada 2017 2016 • Ontario government imposed 16 measures aimed to cool the rate of house price appreciation. Key aspects include: 15% non-resident speculation tax imposed on buyers in the Greater Golden Horseshoe area who are not citizens, permanent residents or Canadian corporations - Expanded rent control that will apply to all private rental units in Ontario Legislation to allow for a vacant home tax $125 million five-year program to encourage construction of new rental apartment buildings by rebating a portion of development charges CMHC 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, currently at 4.64% CMHC updated low-ratio mortgage insurance eligibility requirements for lenders wishing to use portfolio insurance - Maximum amortization 25 years $1 million maximum purchase price Minimum credit score of 600 Property must be owner occupied • • 2015 • 2014 • 2012 Canada Revenue Agency now requires reporting of a disposition of a property for which the principal residence exception is claimed. Foreign buyers are not able to claim the primary residence tax exemption Ministry of Finance launched a public consultation process regarding lender risk sharing. Comments are required to be submitted by the end of February 2017 B.C. government introduced an additional 15% land transfer tax on non-resident purchases in Metro Vancouver Minimum down payment on insured mortgages on homes valued C$0.5 - C$1 million increased from 5% to 10% CMHC discontinued offering mortgage insurance on second homes and to self employed individuals without 3rd party income validation Maximum amount borrowed on insured mortgages at refinancing reduced to 80% (from 85%) • Maximum amortization on insured mortgages reduced to 25 years (from 30) • • CMHC insurance availability is limited to homes with purchase price < $1 million . • For insured mortgages, maximum gross debt service ratio of 39% and maximum total debt service ratio of 44% Maximum LTV for HELOCS lowered to 65% (from 80%) 43 Scotiabank®
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