Covered Bond Program Overview

Canadian Mortgage Market Regulatory Developments (continued) Ontario Government introduced Non- Resident speculation Tax (NRST) of 15% on properties in the Greater Golden Horseshoe area 11 Vancouver Foreign Buyers' Tax increased to 20% 13 Temporary expansion of portfolio insurance eligibility criteria to allow the following for loans funded before March 20th, 2020: Refinances Maximum original amortization of 30 years (up from 25 years) Criteria expansion expected to be in place until December 31st, 2020 15 Minimum qualifying rate (MQR) of greater of 5.25% or contractual rate +2% introduced for insured mortgages, in addition to uninsured mortgage MQR that was introduced in Jan 2018 17 Apr 2017 Feb 2018 Mar 2020 June 2021 Jan 2018 Dec 2018 June 2020 12 Updated Guideline B-20 - Residential Mortgage Underwriting Practices and Procedures in effect Min. qualifying rate for uninsured mortgages greater of 5-yr. Bank of Canada benchmark rate or contractual rate +2% 14 BC Government introduced a Speculation and Vacancy Tax aimed at increasing the supply of rental property inventory CIBC Regulations related to Mortgage Default Insurance • 16 Removal of exceptions to standard Gross/Total Debt Servicing (GDS/TDS) ratios At least one borrower (or guarantor) must have a minimum credit score of 680. Non-traditional sources of down payment will no longer be eligible to satisfy the minimum equity requirements 47

View entire presentation