Investor Relations - Fixed Income Presentation

Legislation and policies - promoting a healthy housing market April 2014 ■ CMHC discontinued offering mortgage insurance on second homes and to self-employed individuals without 3rd party income validation July 2012 ■ Maximum amortization on government-backed insured mortgages reduced to 25 years from 30 years ■ Maximum amount that can be borrowed on a mortgage refinancing lowered to 80% from 85% ■ CMHC insurance availability is limited to homes with a purchase price of <$1 million lowered from $3.5 million ■ Set the borrower's maximum gross debt service ratio at 39% and maximum total debt service ratio at 44% March 2011 ■ Maximum amortization on government-backed insured mortgages reduced to 30 years from 35 years ■ Maximum amount that can be borrowed on a mortgage refinancing lowered to 85% from 90% February 2010 ■ Borrowers must meet the standards for a five-year fixed rate mortgage ■ Maximum amount that can be borrowed on a mortgage refinancing lowered to 90% from 95% RBC ▪ Minimum down payment of 20% is required in order to qualify for government-backed mortgage insurance on non-owner- occupied properties July 2008 ■ Maximum amortization on government-backed insured mortgages reduced to 35 years from 40 years ■ A minimum 5% down payment is required in order to qualify for government-backed insured mortgages ■ Additional – minimum credit score requirements, new loan documentation standards, setting a maximum of 45% on borrowers total debt service ratio Investor Relations - Fixed Income Presentation 21

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