Canadians Turn To Consumer Credit As Mortgage Debt Slows

The great Canadian borrowing binge continues, but it’s not for mortgages. At least, not entirely. Statistics Canada (StatCan) data shows household debt grew in June, but not as fast as usual. Mortgage credit is weighing down growth as it decelerates post-low rate boom. It’s consumer credit that’s booming, a trend the industry attributes to a rise in “distress borrowing.” Canadian Household Debt Is Slowing, But Not Slow Canadian household debt: Annual growth rate. Source: StatCan; Better Dwelling. Household debt grew 0.6% (+$21.0 billion) to $3.29 trillion in June, up 4.3% (+$136.4 billion) from last year. The annual growth rate is the detail worth paying attention to here, as it’s starting to stall and grind lower. That’s not deleveraging, but the pace of borrowing is definitely slowing down. Canadians Add $100 Billion In Mortgage Debt Despite Slowdown Canadian household debt: Annual growth rate of mortgage credit. Source: StatCan; Better Dwelling. Mortgage debt is the lion’s share of household debt. The segment grew 0.6% (+$13.8 billion) to $2.45 trillion in June, 4.2% (+$98.2 billion) higher than last year. Even as housing markets struggle to gain momentum, households added almos...