CIBC Investor Presentation
Mortgage Market Performance and Urbanisation Rates
Canadian mortgages consistently outperform U.S. and
U.K. mortgages
Low defaults and arrears reflect the strong Canadian credit culture
Mortgage interest is generally not tax deductible, resulting in an incentive
for mortgagors to limit their amount of mortgage debt
In most provinces, lenders have robust legal recourse to recoup losses
Mortgage arrears have steadily declined from high of 0.45% in 2009 to
0.24% in May 20201
Canada has one of the highest urbanisation rates in the G7
•
Almost 40% of the Canadian population lives in one of the four
largest cities
A greater rate of urbanisation is a strong contributor to
increases in property values
Source: Canadian Banker's Association
1995
1996
1997
1998
Source: CML Research, CBA, MBA. *Mortgage arrears of 3+ months in
Canada and UK or in foreclosure process in the US
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
5.0%
4.5%
Canada
-U.K.
U.S.
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2010
Mortgage Arrears by Number of Mortgages
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
40%
35%
30%
% of Population
25%
20%
15%
² 10%
5%
0%
Canada
Population in Top Four Cities
U.K.
U.S.
Germany
France
Source: 2014 Census for France, 2016 Census for Canada, 2011 Census for UK, Germany; 2010
Census for US
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