Canadian consumers feeling the weight in the third quarter
December 11 2019 - 6:00AM
Equifax® Canada reported that the average Canadian consumer owed
$72,500 in debt at the end of September, an increase of 2.1 per
cent compared to the same time last year. Non-mortgage debt was up
1.5 per cent to $23,800, a significant slowing from recent trends.
In total, Canadians owed $1.966B in consumer credit, a rise of 4.1
per cent from the same time last year.
Much of the increase in consumer debt came from
mortgages, which was up 4.5 per cent to $1.320B. Non-mortgage debt
rose 3.2 per cent to $646B, the slowest year-over-year growth rate
since early 2016.
“Consumers finally seem to be tempering their
appetite for credit with slowing growth in non-mortgage debt in the
last two quarters,” said Bill Johnston, Vice President of Data
& Analytics at Equifax Canada. “That is a positive sign, as
other indicators suggest more people are challenged with their
current financial situation.”
Delinquency only part of the
story
The most recent data indicates that more
Canadians are missing their monthly payments. The 90-day-plus
delinquency rate for non-mortgage credit rose 9.7 per cent to 1.15
per cent, the highest Q3 reading since 2012. British Columbia
(14%), Ontario (12.4%) and Alberta (12%) had the most significant
increase in delinquency. All age groups reported more missed
payments after Seniors had become the first group to show the
impact in late 2018.
Mortgage delinquencies have also been on the
rise. The 90-day-plus delinquency rate for mortgages rose to 0.18
per cent, an increase of 6.7 per cent from last year. Ontario
(17.6%) led the increases in mortgage delinquency followed by
British Columbia (15.6%) and Alberta (14.8%). The most recent rise
in mortgage delinquency extends the streak to four straight
quarters.
“While the uptrend in delinquencies has been
relatively modest, it has been masked by a significant increase in
consumer bankruptcies,” added Mr. Johnston. “Consumer proposals,
where a licensed insolvency trustee negotiates debt repayments,
remain on a strong rising trend and that is coming at the expense
of traditional delinquencies.”
Environment providing a
breather
“The slower growth in non-mortgage credit is
actually a positive sign, as consumers are starting to get their
balance sheets in order,” concluded Johnston. “With the Bank of
Canada on hold, this is a good opportunity for consumers to reset
and prepare for future interest rate increases.”
Debt (excluding mortgages) &
Delinquency Rates
Age |
Average Debt (Q3 2019) |
Average Debt Change Year-over-Year (Q3 2019 vs. Q3 2018) |
Delinquency Rate (Q3 2019) |
Delinquency Rate Change Year-over-Year (Q3 2019 vs. Q3 2018) |
18-25 |
$8,706 |
0.94% |
1.64% |
11.07% |
26-35 |
$18,316 |
0.84% |
1.65% |
9.74% |
36-45 |
$28,946 |
1.23% |
1.32% |
9.38% |
46-55 |
$36,230 |
2.41% |
0.99% |
9.36% |
56-65 |
$30,383 |
2.18% |
0.88% |
10.00% |
65+ |
$16,606 |
2.54% |
1.01% |
8.66% |
Canada |
$23,806 |
1.45% |
1.15% |
9.65% |
Major City Analysis – Debt
(excluding mortgages) & Delinquency Rates
City |
Average Debt (Q3 2019) |
Average Debt Change Year-over-Year (Q3 2019 vs. Q3 2018) |
Delinquency Rate (Q3 2019) |
Delinquency Rate Change Year-over-Year (Q3 2019 vs. Q3 2018) |
Calgary |
$29,878 |
-0.53% |
1.33% |
11.94% |
Edmonton |
$28,444 |
-0.27% |
1.56% |
11.79% |
Halifax |
$23,622 |
-0.55% |
1.54% |
5.57% |
Montreal |
$18,009 |
1.66% |
1.21% |
0.42% |
Ottawa |
$22,843 |
1.11% |
0.96% |
7.41% |
Toronto |
$23,494 |
3.23% |
1.23% |
13.58% |
Vancouver |
$26,729 |
0.65% |
0.78% |
17.55% |
St. John's |
$25,636 |
0.41% |
1.77% |
12.58% |
Fort McMurray |
$39,838 |
0.37% |
1.91% |
15.84% |
Province Analysis - Debt
(excluding mortgages) & Delinquency Rates & Bankruptcy
Amount
Province |
Average Debt (Q3 2019) |
Average Debt Change Year-over-Year (Q3 2019 vs. Q3 2018) |
Delinquency Rate (Q3 2019) |
Delinquency Rate Change Year-over-Year (Q32019 vs. Q3 2018) |
Ontario |
$24,397 |
2.44% |
1.03% |
12.41% |
Quebec |
$19,857 |
2.13% |
1.00% |
1.63% |
Nova Scotia |
$22,678 |
-0.29% |
1.82% |
7.12% |
New Brunswick |
$23,896 |
0.80% |
1.86% |
7.16% |
PEI |
$23,246 |
0.90% |
1.34% |
3% |
Newfoundland |
$24,111 |
0.15% |
1.88% |
12.17% |
Eastern Region |
$23,407 |
0.22% |
1.81% |
8.00% |
Alberta |
$29,182 |
-0.41% |
1.48% |
11.95% |
Manitoba |
$18,978 |
-0.31% |
1.45% |
10.45% |
Saskatchewan |
$24,937 |
-1.40% |
1.57% |
7.22% |
British Columbia |
$25,035 |
0.79% |
0.93% |
13.99% |
Western Region |
$25,889 |
0.01% |
1.25% |
11.69% |
Canada |
$23,806 |
1.45% |
1.15% |
9.65% |
Data for the Equifax Canada 2019 Q3 National
Consumer Credit Trends Report, including scores, is sourced from
Equifax Canada, the repository of the majority of credit
transactions that occur in Canada. There are over 25 million unique
Equifax Canada consumer credit files. Transaction volumes for data
are estimated at 105 million per month. Information provided in
this report was adjusted to ensure that quarterly data reflects the
results as of the last month of each quarter.
About Equifax Inc.Equifax is a
global information solutions company that uses unique data,
innovative analytics, technology and industry expertise to power
organizations and individuals around the world by transforming
knowledge into insights that help make more informed business and
personal decisions. Headquartered in Atlanta, Ga., Equifax operates
or has investments in 24 countries in North America, Central and
South America, Europe and the Asia Pacific region. It is a member
of Standard & Poor's (S&P) 500® Index, and its common stock
is traded on the New York Stock Exchange (NYSE) under the symbol
EFX. Equifax employs approximately 11,000 employees worldwide. For
more information on our Canadian affiliate, visit Equifax.ca and
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The information in this press release is
published by Equifax Canada Co. © 2019 All rights reserved. This
press release is for informational purposes only and is not legal
advice and should not be used, or interpreted, as legal advice. The
information is provided as is without any representation, warranty
or guarantee of any kind, whether express or implied. Equifax will
not under any circumstances be liable to you or to any other person
for any loss or damage arising from, connected with, or relating to
the use of this information by you or any other person. Users of
this informational publication should consult with their own lawyer
for legal advice.
Contact:
Andrew FindlaterSELECT Public Relationsafindlater@selectpr.ca(416)
659-1197 |
Tom CarrollMedia RelationsEquifax
CanadaMediaRelationsCanada@equifax.com (416) 227-5290 |
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