Presentation to: Ottawa Real Estate Board March 12 th, 2009

Overview Who we are! Types of Commercial Properties How do we Assess Typical Information Requirements Current Market Impact Questions 2

TD BUSINESS BANKING DELIVERY CHANNELS: 1.Small Business Banking * typically loans up to $500M * can do owner occupied mortgages up to $500M * serviced through Small Business Advisors in several retail branches 2.Commercial Banking * loans from $500M - $15MM * ongoing personal involvement of dedicated Relationship Manager * clients with greater complexity in banking requirements * requires more custom solutions * high requirement for cash management services * supports financing for commercial investment properties

Commercial Banking * TD Commercial Banking has one of the largest mid market Commercial Financial Institution presence in the National Capital Region with coverage including the Ottawa Valley and Gatineau/Hull areas. * We feature staff/on site experienced consultants for all of your Credit and Cash Management needs * Our 9 Relationship Managers average more than 20 years experience with TD with a total of 30 people on staff. We maintain an in-house Cash Management group and credit adjudication which helps in providing more local decisions. * Located at 45 O’Connor St at the World Exchange Plaza 4

Commercial Properties Owner Occupied (TD Commercial Mortgage Product) Operating business which owns and operates from its owned premises, either directly or through a separate holding company Typically properties are retail, office, commercial, industrial use Assessment of lending is primarily based on the quality of the property and strength/performance of the operating company combined Really no limit on level of financing, but based on capacity to repay and LTV

Commercial Properties Investment Properties (Small Commercial Mortgage Product) Borrower which operates a commercial property for investment purposes with tenants Can be partially owner occupied, but if greater than 50% then considered investment Typical types of properties includes industrial, office, commercial, retail (strip plaza), mixed use (retail/apartment/office) Minimum occupancy level of 75% required Lending limit for this product is $1.5MM

How do we Assess  The 3 Cs of Credit: Collateral quality and age of property Environmental concerns Structure/mechanical Up to 75% of the lower of p/p, appraised value, and bank economic value Cashflow * EBITDA of the business (sustained over a period of time) – owner occupied * retention of earnings (building the equity) * balance sheet management (debt vs equity levels) * Tenant quality and length of leases *Property specific NOI (including allowance for mgmt fee and vacancy -10%) *Debt service coverage of min 125% (based on business EBITDA or investment property NOI) * Maximum 20 yr amortization

How do we Assess Character * management business strength * experience in the industry/background * internal/external reporting * level and strength of personal recourse

Typical Information Requirements Two year’s property specific operating statements and/or proforma operating statements Two year’s financial statements if borrower includes more than subject property Personal net worth statements of owners/guarantors Rent roll Copy of all leases and offer to lease Purchase and sale agreement (if applicable) Confirmation that property taxes are up to date Copies of enviro assessments and/or structure/mechanical reports (if applicable)

Current Market Impact We are still lending money for commercial real estate! Bank debt syndication market and the securitization vehicles that became popular a few years back has dried up on larger mortgage deals Our lending policies for both owner occupied and investment properties have not changed due to current economic conditions Properties do not have to be considered “A or B” class investment grade type of assets for financing (up to the $1.5MM ceiling) Other non-bank lending conduits have scaled back or are not lending in this segment at all. Pricing: Rates have gone up over the past year, primarily due to higher borrowing costs for Banks, but are still considered fairly attractive, both fixed and floating options. Where are rates going and what should clients do?

QUESTIONS