Investor Presentation February 2024

3.0 30 2.0 1.0 0.0 - 866L 1999- 5.0 4.0 2004 2005 6.0 Structure of the Canadian residential mortgage market with comparisons to the United States • • • • . Conservative lending practices, strong underwriting and documentation discipline have led to low delinquency rates Over the last 30 years, Canada's 90-day residential mortgage delinquency rate has never exceeded 0.7% Mandatory government-backed insurance for high loan to value (LTV >80%) mortgages covering the full balance Government regulation, including progressive tightening of mortgage rules, to promote a healthy housing market - All mortgages, including variable rate, are adjudicated at a stressed interest rate which is the higher of the qualifying rate (currently 5.25%) or the customer contract rate +200 bps to ensure customers can service the debt under higher rates Shorter term mortgages (avg. 5 years), renewable and re-priced at maturity, compared to 30 years in the U.S. market No mortgage interest deductibility for income tax purposes (reduces incentive to take on higher levels of debt) In Canada, mortgages are held on balance sheet; in the U.S., they may be sold or securitized in the U.S. market Recourse back to the borrower in most provinces Prepayment penalties borne by the borrower whereas U.S. mortgages may be prepaid without penalty Mortgage Delinquencies Arrears to Total Number of Residential Mortgages (%) 2006 2007 2008 2009 ZLOZ . OLOZ - LLOZ . ZLOZ -Canada United States -United Kingdom Sources: BMO CM Economics and Canadian Bankers Association as at February 23, 2024 BMOM 2013 2014 2015 2016 2017- 2018- 2019- 2020 2021- 2022 2023 Equity Ownership (%) 80.0 75.0 70.0 65.0 60.0 55.0 50.0 45.0 40.0 35.0 1991 1992- 1993 - 1994 - 1995 1996 - 1997- 1998- 1999 - 2000 1 2001 1 2002 - 2003 2004 2005 2006- 2007 2008- 2009- 2010- 2011 2013 2014- 2015- 2016- 2017- 2018- •Canada United States Investor Presentation ⚫ February 2024 41 2019- 2021- 2022 2023 1

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