Household lending conditions largely unchanged says BoC

Household lending conditions largely unchanged says BoC

Household lending conditions largely unchanged says BoC

There was little change in mortgage and non-mortgage lending conditions for Canadian households in the first quarter of 2019.

The Bank of Canada’s Senior Loan Officer Survey shows that this follows tightening of conditions in 2017 and 2018 largely driven by regulatory changes in the mortgage market.

Demand for household lending weakened due to rising interest rates, the softer housing and labour markets, and declining consumer confidence.

It’s expected that demand for borrowing will remain weaker in the second quarter of 2019 as interest rates and a potential economic slowdown lead to less demand for low-ratio mortgages and HELOCs.