Strategic Priorities & Financial Overview slide image

Strategic Priorities & Financial Overview

Mortgage Market Performance and Urbanization Rates Mortgage Arrears by Number of Mortgages 1 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% 1999 2005 2007 2013 2015 2017 2019 2021 2023 Canada has one of the highest urbanization rates in the G7 • Over 45% of the Canadian population lives in one of the four largest cities A greater rate of urbanization is a strong contributor to increases in property values 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 September 20232 Population in Top Four Cities³ 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Canada U.K. U.S. Germany France % of Population CIBC◇ For footnoted information refer to slide 37. 26
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