Q3 2019 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
and UK or in foreclosure process in the US
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
40%
Mortgage arrears have steadily declined from high of 0.45%
in 2009 to 0.25% in 2019
Population in Top Four Cities
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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