CIBC Q1 2019 Fixed Income Investor Presentation
32
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%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
- 6007
2010
2011
2012
2013
2014
2015
2016
2017
2018
Source: CML Research, CBA, MBA. *Mortgage arrears of 3+ months in Canada
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
☐
Mortgage arrears have steadily declined from high of 0.45%
in 2009 to 0.24% in 2018
Population in Top Four Cities
Canada has one of the highest urbanisation rates
in the G7
■ Almost 40% of the Canadian population lives in one of
the four largest cities
■ A greater rate of urbanisation is a strong contributor to
increases in property values
CIBC Q1 2019 Fixed Income Investor Presentation
% of Population
40%
35%
30%
25%
20%
15%
10%
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
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