While the Canadian household debt balance has broken all previous records by reaching a total of $2.13 trillion in July (up by 3.77% compared to the same time last year), data from the Bank of Canada also indicated a recent sharp decline in the growth of these accountabilities.
Canadian mortgage debt increased by 3.7% in that month (up to $1.52 trillion), which was over 40% lower on a year-over-year basis. This was the slowest pace since June 2001, Better Dwelling reported.
Similarly, the national consumer debt load grew by 4% in July (up to $616 billion), approximately 20% below last year and the slowest rate since September 2016.
Read more: Why isn’t the government controlling unsecured debt?
The historic debt load has proven to be a significant source of anguish for Canadian households.
In a recent study conducted by Ipsos for insolvency practice MNP Debt, two-thirds of Canadians expressed deep regrets about their debt, with 41% regretting the total debt they have incurred in their lives, and 37% citing anxiety caused by their current debt levels.
The survey also found that 44% of Canadians are afraid that they will not be able to pay for their day-to-day and family expenses in the next 12 months without taking on further debt.
Rising rates not enough to deter Canadians’ home buying plans