Covered Bond Program Overview

Mortgage Market Performance and Urbanization Rates A greater rate of urbanisation is a strong contributor to increases in property values CIBC◇ 1995 1996 Canada has one of the highest urbanisation rates in the G7 . Over 45% of the Canadian population lives in one of the four largest cities 1997 Source: UK Finance, CBA, MBA. *Mortgage arrears of 3+ months in Canada and UK or in foreclosure process in the US 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 2011 2012 Mortgage Arrears by Number of Mortgages 2013 2014 2015 2016 2017 2018 2019 2020 2021 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 0.16% in February 20221 Source: Canadian Banker's Association Population in Top Four Cities % of Population 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Canada U.K. U.S. Germany France Source: 2014 Census for France, 2021 Census for Canada, 2011 Census for UK, Germany; 2020 Census for US 31

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