Capital Markets & Funding Strategies
Mortgage Market Performance and Urbanization Rates
Mortgage Arrears by Number of Mortgages²
1996
1997
1998
1999
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%
•
•
2000
2001
2002
Canada has one of the highest urbanisation
rates in the G7
2003
2004
2005
2005
2005
2006
2002
2007
2008
2008
6002
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2020
2021
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
0.16% in February 20221
Population in Top Four Cities 3
50%
45%
40%
35%
30%
25%
•
Over 45% of the Canadian population lives in one of
the four largest cities
20%
15%
•
A greater rate of urbanisation is a strong contributor to
increases in property values
10%
5%
0%
U.S.
Germany
France
Canada
U.K.
CIBC
1 Source: Canadian Banker's Association 2 Source: UK Finance, CBA, MBA. *Mortgage arrears of 3+ months in Canada and UK or in foreclosure process in the US 3 Source: 2014 Census for France,
2021 Census for Canada, 2011 Census for UK, Germany; 2020 Census for US
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