New figures from one of Canada’s largest banks and mortgage lenders shows the continuing growth of household debt. RBC’s report reveals that total consumer debt is now $1.8 trillion (at the end of September) with mortgages contributing the lion’s share of the increase. There has been a 5 per cent growth in debt since October 2014 and a 7.4 per cent rise since the end of the second quarter of 2015.
In the twelve months to the end of September residential mortgages increased by 5.9 per cent ($74.7 billion) while other consumer debt slowed. Home loans increased by 9 per cent of the total in the three months to the end of September. Mortgages make up 71.2 per cent of household debt; those home loans held by chartered banks make up 52.8 per cent of all household debt; non-banks hold 15 per cent; securitized mortgages make up 3.2 per cent; NHA MBS make up 2.8 per cent.
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