Economic Forecasts and Performance Review
Canadian Banking: Residential Mortgages
High quality, diversified portfolio
• Residential mortgage portfolio of $227 billion: 39% insured; LTV 55% on the uninsured book1
。 Mortgage business model is "originate to hold"
o New originations² in fiscal year 2019 had average LTV of 64.5%
。 Majority is freehold properties; condominiums represent approximately 14.1% of the portfolio
⚫ Three distinct distribution channels: all adjudicated under the same standards
o 1. Broker (~62%); 2. Branch (~18%); and 3. Mobile Salesforce (~20%)
o Our recently launched Scotiabank eHOME digital mortgage solution is emerging as our 4th distribution channel. Most recently,
we launched the ability for Canadians to get pre-approved online with a credit decision and a pre-approval letter in just minutes
– another first for the industry. We have also partnered with the Canadian Real Estate Association (CREA) to enable customers
to search for a home directly within eHOME, making the entire home-buying journey digital
CANADIAN MORTGAGE PORTFOLIO: $227B (SPOT BALANCES AS AT Q4/19, $B)
Freehold $195B
-
39%
Condos - $32B
Insured
$116.6
$14.2
$102.4
$42.2
$30.8
$10.7
$3.7
$16.4
- $1.9
$31.5
$27.1
Ontario
BC & Territories
Alberta
% of
portfolio
51.5%
18.6%
13.6%
$14.5
Quebec
$11.1
$10.9
- $0.2
$9.5
$8.8
- $0.7
Atlantic Provinces
Manitoba &
Saskatchewan
7..2%
4.9%
4.2%
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:
$227 billion
61%
Uninsured
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