Canadian Bail-in Regulations and Economic Fundamentals
Canadian Banking: Residential Mortgages
High quality, diversified portfolio
• Residential mortgage portfolio of $217 billion: 42% insured; LTV 55% on the uninsured book¹
○ Mortgage business model is "originate to hold"
○ New originations² in Q2/19 had average LTV of 64.5%
○ Majority is freehold properties; condominiums represent approximately 13% of the portfolio
• Three distinct distribution channels: All adjudicated under the same standards
o 1. Broker (~59%); 2. Branch (~18%); and 3. Mobile Salesforce (~23%)
CANADIAN MORTGAGE PORTFOLIO: $217B (SPOT BALANCES AS AT Q2/19, $B)
Freehold $188B
Condos $29B
$110.2
42%
$12.9
Insured
$97.3
$39.6
$9.7
$30.6
$3.6
$16.0
$29.9
$27.0
$1.8
$14.2
$11.2
$11.0
$9.5
$0.2
Ontario
BC & Territories
Alberta
Quebec
Atlantic Provinces
% of
50.8%
18.2%
14.1%
7.4%
5.2%
$8.8 - $0.7
Manitoba &
Saskatchewan
4.3%
portfolio
1LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data
2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases
refinances with a request for additional funds and transfer from other financial institutions
Total
Portfolio:
$217 billion
58%
Uninsured
Scotiabank®
20
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