Canadian households’ $1.5 trillion debt; two thirds of which are home loans

Canadian households’ $1.5 trillion debt; two thirds of which are home loans

Canadian households’ $1.5 trillion debt; two thirds of which are home loans The Bank of Canada may have been largely positive about the economy but Stephen Poloz’ statement yesterday in which he announced that the interest rate will stay at 1 per cent also raised concern about the level of household debt. New figures from Equifax show a $1.5 trillion debt burden for Canada’s households, with the debt load rising 7.4 per cent in the three months to the end of September compared with a year before. That works out at an average debt of $20,891 per person excluding mortgages. However, unlike the BoC, the credit agency says that it is not concerned about the levels as consumers are controlling their debt well. Of the $1.5 trillion owed two thirds is mortgage debt, totalling $985.1 billion. Read the full story.
14 Comments
  • Omer Quenneville 2014-12-04 9:17:42 AM
    Except for the dreaded TD collateral mortgages and HELOC mortgage information shouldn't be reported to Equifax. How would they know 2/3s of household debt is mortgage.
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  • Bob 2014-12-04 11:20:29 AM
    mortgages are now reported on Equifax & lenders who report mortgages have the ability to see mortgages from other FIs on the bureau
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  • James Robinson 2014-12-04 12:11:58 PM
    I wonder if this amount is based on the snapshot reporting collected by Equifax? For those of us that always pay our credit card balances in full every month, the balances reported on our credit report are inaccurate as it shows the balance on the day reported. The result could be a significant overstating of debt levels in Canada. I do not use a credit card as a debt facility, but simply a way to keep my money in my possession a little longer (albeit usually in a bank account that pays no interest)
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