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Mortage Portfolio Breakdown – Single-family (1 to 4 units)

The first part of the graph shows the breakdown of principal balance by province and the weighted average loan-to-value ratio for each of them.

The second part shows the breakdown of mortgage principal balance based on the remaining amortization.

Last update: March 31, 2018

NEW LOANS
Average weighted loan-to-value ratio (%) by province
Insured

QC

83.92

ON

80.00

AB

0.00

CB

0.00

Non-insured

QC

69.90

ON

58.31

AB

70.63

CB

69.61

Discussion regarding the potential impact on residential mortgage loans in the event of an economic downturn

iA Financial Group ("iA") originates and underwrites predominantly "Prime" or "A" single-family mortgages consisting of residential properties of  to four dwelling units. For classification purposes, "Prime" or "A" describes mortgages originated under lending criteria traditionally applied by Canadian chartered banks, and generally includes mortgages that secure principal amounts not exceeding 80% of the value of the related mortgaged property [or 95% in cases where the mortgages are insured by qualified mortgage insurers such as Canada Mortgage and Housing Corporation ("CMHC"), Genworth Financial Mortgage Insurance Company Canada ("Genworth") or Canada Guaranty Mortgage Insurance Company ("Canada Guaranty")].

Our mortgage loans have a history of low arrears that is a reflection of a iA’s rigorous underwriting criteria. Moreover, single-family residential mortgages are sourced from a market comprised of large urban areas across Canada and are strategically distributed throughout iA’s internal network as well as externally.

Despite the elements discussed above, a decline in the general economic condition can have a material adverse effect on the creditworthiness of a borrower and increase default rates. iA’s stress testing of its portfolio and contingency plan, if such scenario were to occur, is, in our view, an element that would mitigate some of the adverse effects incurred by the company.

Average weighted loan-to-value ratio (%)
Book value (in thousands of dollars) Percentage of portfolio Average weighted loan-to-value ratio (%) 0-179 months 180-239 months 240-299 months 300-359 months 360+ months
Insured
B.C.

2,678

0.28

55.07

0.06

0.12

0.11

0.00

0.00

Sask., Man., Nunavut, N.W.T.

-

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Maritimes

478

0.05

74.06

0.01

0.01

0.03

0.00

0.00

Ont.

14,916

1.56

52.05

0.69

0.37

0.37

0.14

0.00

Que.

767,917

80.36

70.96

14.19

21.27

39.48

5.40

0.02

Alta.

620

0.06

63.85

0.06

0.00

0.00

0.00

0.00

Subtotals 786,609 82.31 70.54 15.01 21.77 39.99 5.54 0.02
Non-insured
B.C.

12,460

1.30

51.40

0.23

0.22

0.85

0.00

0.00

Sask., Man., Nunavut, N.W.T.

272

0.03

0.00

0.00

0.00

0.03

0.00

0.00

Maritimes 362

0.04

67.46

0.00

0.02

0.02

0.00

0.00

Ont.

60,713

6.35

59.16

0.10

1.04

4.96

0.25

0.00

Que.

94,782

9.92

59.58

2.97

3.06

3.13

0.75

0.00

Alta.

456

0.05

73.33

0.00

0.03

0.02

0.00

0.00

Subtotals 169,045 17.69 58.91

3.30

4.37 9.01 1.00 0.00
Totals 955,654 100.00 68.49 18.31 26.14 49.00 6.54 0.02