Q1 2020 Fixed Income Investor Presentation
33
Mortgage Market Performance and Urbanisation Rates
Mortgage Arrears by Number of Mortgages
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%
1998
1999
Source: CML Research, CBA, MBA. *Mortgage arrears of 3+ months in Canada
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
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 0.25% in 2019
Population in Top Four Cities
and UK or in foreclosure process in the US
40%
35%
Canada has one of the highest urbanisation rates
in the G7
30%
■ Almost 40% of the Canadian population lives in one of
the four largest cities
% of Population
25%
20%
15%
10%
■ A greater rate of urbanisation is a strong contributor to
increases in property values
5%
0%
Canada
U.K.
U.S.
Germany
France
Source: 2014 Census for France, 2016 Census for Canada, 2011
Census for UK, Germany; 2010 Census for US
CIBC
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