Tuesday, October 7, 2025

Latest

Strong Housing Market Recovery Causes Consumer Debt to Rise in Q2

As the coronavirus pandemic continues to put financial pressure on Canadians, the latest data released by Equifax suggests that the strong housing market recovery along with abundant loan deferrals has caused consumer debt to rise.

The second quarter of 2020 saw consumer debt to grow to $1.991 trillion, which points to a 2.8% increase compared to the same time a year prior. The rise in mortgage balances has in turn caused per capita debt to expand by 2.2% since the second quarter of 2019 to an average of $73,532. Moreover, the strong rebound in home sales along with a spike in refinancing activity has pushed average home prices up.

However, not all types of debt has increased in the second quarter. Non-mortgage debt has declined compared to last year’s second quarter, as stringent lockdown measures forced Canadians from using their credit cards or purchasing new vehicles. The unprecedented financial volatility has caused many to resort to payment deferrals, especially among those aged between 35 and 44.

The 90-day delinquency rate for non-mortgage debt has risen 10.6% since the prior year, currently sitting at 1.24%. According to Equifax, one in every five people that took advantage of payment deferrals reported that they were already facing financial hardships even before the pandemic. However, now that debt-alleviating mechanisms are being phased out, those individuals may soon find themselves struggling to gain a foothold.


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.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Pace of Business Openings Across Canada on the Decline Prior to Additional Covid-19 Lockdowns

Despite being several months behind, Statistics Canada on Monday released data on business closures and...

Tuesday, January 26, 2021, 11:57:00 AM

Canada’s Natural Resource Sector Grows 0.3% in the Third Quarter

Real GDP in the natural resources sector rose by 0.3% in the third quarter of...

Monday, January 18, 2021, 10:34:00 AM

Home Sales in the Greater Toronto Area Show Signs of Rebound in May

When the coronavirus pandemic made its way into Canada in February, a series of lockdown...

Thursday, June 4, 2020, 11:13:00 AM

Canadian Military Faces Growing Challenges in the Face of Global Instability

In a recent interview with The Canadian Press, Vice Admiral Bob Auchterlonie, the commander of...

Wednesday, January 3, 2024, 03:14:00 PM

Canada’s Cautious Reopening Causes Economic Recovery to Fall Behind Compared to US Counterpart

As coronavirus restrictions are slowly being lifted across the country, the resulting economic damage is...

Friday, June 12, 2020, 05:49:00 PM