“A modest slowing in the accumulation of residential mortgage debt helped to offset rising demand for consumer credit in May, resulting in the overall household credit growth rate remaining unchanged in the month,” the report states. “Outstanding mortgage balances stood at $1.23 trillion, up five per cent on a year-over-year basis compared to the 5.1 per cent recorded in April and marked the second consecutive month of moderation.”
According to the report, banks account for $922 billion in outsanding residential mortgage debt (a 5.6 per cent year-over-year jump) compared to $260 billion in non-bank residential mortgage debt (2.4 per cent year-over hike).
Overall, there is $1.2 trillion outstanding residential mortgage debt in Canada – up 5 per cent year-over-year.
Meanwhile, consumer credit reached a twelve-month high.
“In contrast, households increased their pace of non-mortgage borrowing for the sixth consecutive month in May after growth eased to a cycle-low of 1.2 per cent in November 2013,” the report states. “The year-over-year increase in consumer credit rose from 2 per cent in April to a twelve-month high 2.2 per cent in May.”
Outstanding mortgage balances have moderated for a second consecutive month, according to RBC’s most recent Canadian credit report.