Investor Relations - Fixed Income Presentation
Canadians have significant equity ownership in their homes
■ Canadians carry a significant and stable amount of equity in their homes
RBC
■ Canadian borrowers are more incented to pay off their mortgage as interest is not tax deductible and rate of
home ownership is higher than that of the U.S., at approximately 69% compared to 65% for the U.S.(1)
Mortgage delinquency rates remain low in Canada and have been stable through recent credit cycle
■ RBC stress tests its residential mortgage and broader retail portfolios to dramatic movements in house
prices, interest rates and unemployment
Homeowners Equity as % of
Total Value of Real Estate Assets (2)
(Owners' equity as a % of residential real estate assets)
Mortgage Delinquencies (3)
(Mortgages 90+ days in arrears as a % of total mortgages)
BO
75
70
65
60
55
50
45
49
40
Canada
U.S.
5
4
3
2
Canada
U.S.
0
35
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
Investor Relations - Fixed Income Presentation
(1) Statistics Canada Census and U.S. Census Bureau.
(2) Statistics Canada, Federal Reserve Board, RBC Economics Research.
(3) Canadian Bankers' Association, Mortgage Bankers Association, RBC Economics Research.
7View entire presentation