New mortgage originations in Canada dipped in first quarter: report
Global News
Equifax Canada says credit demand was high in the first quarter of the year while the mortgage market saw a significant slowdown.
Equifax Canada says credit demand was high in the first quarter of the year while the mortgage market saw a significant slowdown.
The agency says in its latest consumer credit report that on average, consumers are spending 21.5 per cent more each month on their credit cards compared with pre-pandemic levels.
Equifax Canada’s vice-president of advanced analytics Rebecca Oakes says in a statement that the first quarter normally brings a drop in non-mortgage debt as consumer spending slows after the holidays.
But this year, Oakes says credit card balances continued to increase for the first quarter.
Missed payments on non-mortgage debts also rose, with 175,000 more consumers missing payments on at least one product, up 18.8 per cent from a year earlier.
Oakes says the higher cost of living and the influx of new credit customers have driven credit card balances to rise by 14.5 per cent year-over-year.
Equifax says non-mortgage delinquency rates rose by the most in British Columbia and Ontario. And while at the end of 2022 delinquencies were more pronounced among non-mortgage holders, the first quarter of 2023 saw an increasing number of mortgage holders missing payments on non-mortgage debt.
“While interest rates and cost of living remain high, we expect to see more groups of consumers experiencing financial difficulties over the coming months,” says Oakes.