Investor Relations Presentation

Canadian Residential Real Estate Portfolio Uninsured LTV 55% 48% 52% Insured . • Total portfolio: $189B at Q3/14 . $20B $169B Freehold Condominium ● Market features Conservative product offerings; fixed and variable, usually 5 years or less Mandatory insurance on LTV >80%, paid upfront by borrower, coverage for life of mortgage Max 25 year amortization on LTV >80%, max 30 years on uninsured Mortgage interest not tax deductible In most provinces, full lender recourse to borrower and property CMHC insurance not available on homes >$1 million, requiring down payment of at least 20% Banks use "originate and hold" model External broker channel accounts for ~40% of Scotiabank mortgage originations $847 million outstanding to Canadian condo developers as at Q3/14 $19 billion in HELOCS, primarily uninsured

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