Canadians relied heavily on debt during the pandemic mostly to renovate their homes amid a series of lockdowns and virtual work. Meanwhile, the Bank of Canada governor urged Canadians not to take up too much debt.
Household mortgage debt grew by 1 per cent in April to to C$ 1.69 trillion (US$ 1.4 trillion), Statistics Canada reported on Friday. This is $17 billion increase in residential mortgage credit during the month, the fastest since 2010.
Other forms of credit such as Home equity lines of credit (HELOCs) and non-mortgage debt also increased. HELOCs rose to a record of just over $262 billion while non-mortgage debt increased at a slower pace.
Total household debt increased to $2.49 trillion in April which is a 0.9 per cent increase during the month.
References:
1) Evans, P. (2021, June 18). Canadians now owe almost $2 trillion on their homes - a new record | CBC News. CBCnews. https://www.cbc.ca/news/business/mortgage-debt1.6071190#:~:text=Business-,Canadian%20mortgage%20debt%20grew%20by%20%2418%20billion%20in%20April%2C%20biggest,trillion%2C%20according%20to%20Statistics%20Canada.
2) News, B. (2021, June 18). Canadians piling on mortgage debt at dizzying pace amid housing boom. financialpost. https://financialpost.com/real-estate/mortgages/mortgage-debt-is-surging-in-canada-amid-a-pandemic-housing-boom.
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