Canadian Bail-in Regime Update

Canadian Mortgage Market Regulatory Developments (continued) • Ontario Government introduced Non- Resident speculation Tax (NRST) of 15% on properties in the Greater Golden Horseshoe area Apr 2017 11 • • • Vancouver Foreign Buyers' Tax increased to 20% • 13 Temporary expansion of portfolio insurance eligibility criteria to allow the following for loans funded before March 20th, 2020: Refinances Maximum original amortization of 30 years (up from 25 years) Criteria expansion expected to be in place until December 31st, 2020 15 Minimum qualifying rate (MQR) of greater of 5.25% or contractual rate +2% introduced for insured mortgages, in addition to uninsured mortgage MQR that was introduced in Jan 2018; reconfirmed in December 2022 17 Effective January 1st, 2023 a two-year ban on the purchase of residential property by non-Canadians takes effect. The ban applies to foreign corporations and individuals who are not citizens or permanent residents of Canada and includes direct and indirect purchases. 19 Toronto increased Vacant Home Tax to 3%, effective Jan 2024 21 Feb 2018 Mar 2020 June 2021 Jan 2023 Jan 2023 Oct 2023 Jan 2018 Dec 2018 June 2020 Oct 2022 14 12 Updated Guideline B-20 - Residential Mortgage Underwriting Practices and Procedures in effect Min. qualifying rate for uninsured mortgages greater of 5-yr. Bank of Canada benchmark rate or contractual rate +2% BC Government introduced a Speculation and Vacancy Tax aimed at increasing the supply of rental property inventory CIBC Regulations related to Mortgage Default Insurance . • 16 20 Removal of exceptions to standard Gross/Total Debt Servicing (GDS/TDS) ratios At least one borrower (or guarantor) must have a minimum credit score of 680. Non-traditional sources of down payment will no longer be eligible to satisfy the minimum equity requirements 18 Effective October 25, 2022, the Non- Resident Speculation Tax (NRST) rate was increased to 25 per cent. This tax applies on the purchase or acquisition of an interest in residential property located anywhere in Ontario by individuals who are foreign nationals (individuals who are not Canadian citizens or permanent residents of Canada) or by foreign corporations or taxable trustees • Toronto introduced Vacant Home Tax of 1% of the assessed value of the home 18 48

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