Thursday, May 29, 2025

Latest

Canadian Consumer Debt Surpasses $2 Trillion as Demand for New Credit Escalates Despite Covid-19 Concerns

As a result of Canada’s housing market continuing to make strong gains despite less than ideal economic conditions, as well as an increased demand for new vehicles among Canadians, consumer debt spiked by 3.8% in the third quarter relative to last year’s levels.

According to the latest quarterly consumer credit conditions report published by Equifax Canada, consumer debt among Canadians rose to $2.041 trillion in the third quarter, which amounts to a 3.8% increase compared to third quarter 2019. In the meantime, overall average consumer debt is up by 3.3%, to $74,897 in the same period. The sudden rise in consumer debt is largely the result of homebuyers, with mortgage balances rising by 6.6% year-over-year in the third quarter, while the average new mortgage loan amount increased by 8.6% to exceed the $300,000 threshold for the first time.

In addition, Canadian car sales increased amid the pandemic, as an increasing number of consumers are opting out of public transportation over growing virus infection fears. In fact, with some regions of the country even experienced shortages due to pent-up demand stemming from manufacturer and auction house shutdowns during the spring. As a result, new auto loans rose by 11.7% relative to last year’s levels.

In the meantime, the 90-day delinquency rate for all non-mortgage debt dropped to 0.98% – the lowest level recorded since 2014. Although certainly an optimistic number, Equifax noted there are some underlying worries. The current lower-than average delinquency rates are likely being masked over by a variety of deferral programs, that were made available to Canadians amid a deteriorated labour market.

According to Equifax data, more than 3 million Canadians have taken advantage of payment deferrals since the onset of the pandemic; however, it has not stopped many from taking on additional credit, with nearly 12% of new credit products in Q3 being opened by consumers that already had a deferral on their credit line.


Information for this briefing was found via Equifax. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

First Majestic Makes Second Major Discovery At Santa Elena In Just A Year

Related News

Value of Building Permits Plummet by Record 14.8% in May

Following what were four straight months of record-breaking gains, the value of building permits suddenly...

Saturday, July 10, 2021, 11:23:00 AM

Canada’s Housing Starts Show a Steady Increasing Pace in June

As restrictions are gradually lifted Canadians return to work following the height of the coronavirus...

Friday, July 10, 2020, 01:35:00 PM

Property Developer Kaisa Misses Payment as China’s Default Contagion Continues

In yet another testament that China’s real estate sector is crippling under an acute debt...

Sunday, November 7, 2021, 03:51:00 PM

California Introduces Bill That Would Allow Businesses to Terminate Commercial Lease Agreements

As lockdowns across the US are beginning to subside, it appears that many small and...

Wednesday, June 3, 2020, 02:46:00 PM

US Pending Home Sales Unexpectedly Plummet in June Amid Surging Prices

Pending home sales across the US unexpectedly nosedived in June, as soaring property prices left...

Friday, July 30, 2021, 03:19:00 PM