RBC Business Segments and Market Strategy
Canadians have significant equity ownership in their homes
■ Canadians carry a significant and stable amount of
equity in their homes
■ The pace of mortgage accumulation continues to
trend within a range well below the double-digit
rates of growth recorded in the mid-2000s
■ Mortgage delinquency rates remain low in Canada.
and have been stable throughout recent credit
cycles
RBC monitors its residential mortgage and broader
retail portfolios closely and performs stress tests
for dramatic movements in house prices, GDP,
interest rates and unemployment rates
20
Residential Mortgage Growth (2)
(Year-over-year % change)
Equity Ownership (1)
RBC
(Owners' equity as a % of total value of residential real estate assets)
80
75
R
70
65
60
55
50
45
40
Canada
U.S.
35
1990
1992
1994
1996
1998
2000
2002
2004 2006 2008 2010
2012 2014
Mortgage Delinquencies (3)
(Mortgages 90+ days in arrears as a % of total mortgages)
Canada
6
U.S.
18
16
5
14
4
12
10
3
8
6
2
4
1
2
0
1990 1992
1994
1996 1998
2000 2002
2004 2006
2008
2010 2012 2014
0
1990
1992
1994
1996
1998
2000 2002 2004
2006
2008
2010 2012
2014
Canadian Housing Market
33
(1) Statistics Canada, Federal Reserve Board, RBC Economics Research. (2) Bank of Canada, RBC Economics Research. (3) Canadian Bankers' Association, Mortgage Bankers' Association,
RBC Economics Research.View entire presentation