Canadian Mortgage Credit Continues To Slow, Credit Card Debt Surges
Debt-crazed Canadians may not be borrowing to buy a home, but they are borrowing—a lot. Bank of Canada (BoC) data reveals outstanding mortgage credit made a small climb in December, at an unusually slow pace. Mortgage debt is now growing at the slowest rate in over two decades, with home prices now firmly placed out of reach for most. That isn’t stopping households from borrowing though—they’re just embracing home equity and credit cards, and balances for both segments are rapidly accumulating.
Canadian Mortgage Debt Is Growing At The Slowest Rate Since 2001
Canadian mortgage debt continues to rise, but barely. Outstanding mortgage credit climbed 0.3% (+$6.0 billion) to $2.16 trillion in December. Annual growth came in at 3.2% for 2023, marking the slowest 12-month period since April 2001—over two decades ago, during a particularly rough recession for Canada.
It really needs to be seen to appreciate how unusually slow mortgage borrowing has been. …[Continue Reading]