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Canadian household indebtedness is higher than last year in the 2nd quarter of 2019. That said, the trend since the first quarter of 2019 has seen a decline of indebtedness.
| Mortgage | |||||
|---|---|---|---|---|---|
| Number of new loans (thousands) | Average balance (thousands of $) |
||||
| New loans | 222 | New loans | 263 | All loans | 211 |
| 8.2% | 3.4% | 2.5% | |||
| Delinquency rate (%) | Average payment ($) | ||||
| All loans | 0.30% | New loans | 1,426 | 2.4% | |
| 0.02 ppt | All loans | 1,310 | 4.0% | ||
| Overall, volume of mortgage activity grew at a steady pace, partly reflecting stronger housing market activity. | |||||
| Heloc | |
|---|---|
| Average balance (thousands of $) | |
| All loans | 98.9 |
| 0.7% | |
| Utilization rate (%) | |
| All loans | 57.0 |
| 0.3 ppt | |
| Delinquency rate (%) | |
| All loans | 0.17 |
| 0.02 ppt | |
| HELOC average balance grew, while utilization rate declined. Delinquency rate remains low. | |
| Other Debt | |
|---|---|
| Consumer with a mortgage | Consumer without a mortgage |
| Average balance ($) | |
| 9,096 | 7,799 |
| 2.8% | 2.9% |
| Delinquency rate (%) | |
| 0.75% | 2.12% |
| 0.02 ppt | 0.12 ppt |
| Consumers kept increasing their other debt burden and therefore their vulnerability to a shock in the longer run. | |
CMHC’s latest national edition of the Mortgage and Consumer Credit Trends report covers the second quarter of 2019. Here are a few facts:
Across the board since the beginning of 2019 to the second quarter, credit scores for consumers with and without a mortgage are rising. The credit scores were reported highest for consumers with a mortgage. Over the last 4 years, the average credit scores for consumers without a mortgage have worsened slightly, indicating that these consumers are having a harder time paying off debt than those with a mortgage.
In the second quarter of 2019, the average outstanding loan balance for new mortgages rose in Montreal and Toronto as a reflection of average price growth. It declined in Vancouver compared to last year. Non-mortgage debt has also been rising by region over the last four years, with slightly larger monthly obligations for Montreal.
Despite the large size of millennials entering the market, the share of mortgages held by people aged 55+ grew, as fewer young adult consumers were mortgage holders.
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