Real Estate
Mortgage Surge Pushes Canada Consumer Debt to $1.7 Trillion
- New borrowing to buy homes was up 41% in first quarter
- Credit card debts decline with government aid, lockdowns
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A surge in mortgage borrowing is pushing consumer debt loads higher in Canada despite falling credit card use, as households plow more money into their homes while spending less on everything else.
New mortgage borrowing rose 41% in the first quarter compared to the same period in 2020, when the pandemic began, according to a release Tuesday from consumer credit reporting firm Equifax Inc. The average limit on new mortgages -- the amount for which borrowers were approved -- jumped more than 20% to C$326,930 ($270,490).