Canadian households begin the year with continued demand for mortgage loans: Stats Canada

2021-03-19: Household sector borrowing is divided into financing in the form of non-mortgage loans, or funds principally for consumption, and mortgage loans, or debt acquired to finance the purchase of a property.

By the end of January, households had added $7.0 billion in overall mortgage debt compared with the end of 2020—a year-over-year rise of 7.1%.

Sales of existing homes remained strong into January, with overall sales volumes up 35.2% from the previous year.

Non-mortgage debt declined 1.6% by the end of January, compared with the same month of the previous year, and has yet to reach the levels of 2019, after a year of moderation, including a notable decline in the first half of 2020.

Overall, the total credit liabilities of households reached $2,453.2 billion by the end of January. Real estate secured debt, composed of both mortgage debt and home equity lines of credit, stood at $1,925.7 billion.

Chart 1 Chart 1: Year-over-year growth in household non-mortgage and mortgage loans
Year-over-year growth in household non-mortgage and mortgage loans

Chart 1: Year-over-year growth in household non-mortgage and mortgage loans

Private non-financial corporation borrowing rises

Historically, chartered banks have been an important source of funds for private non-financial corporations. In January, outstanding non-mortgage loan liabilities with chartered banks increased by $3.5 billion, continuing the growth recorded in December 2020, but balances remained lower than at the end of 2019. The federal government continued to provide funds to private non-financial corporations in the month, following the expansion of the Canada Emergency Business Account in December 2020, as non-mortgage debt with government increased by $3.2 billion.

Overall, total credit liabilities of private non-financial corporations totalled $2,837.4 billion by the end of the month.

Chart 2 Chart 2: Changes in stock of non-mortgage loans to private non-financial corporations, by lender
Changes in stock of non-mortgage loans to private non-financial corporations, by lender

Chart 2: Changes in stock of non-mortgage loans to private non-financial corporations, by lender

Source: https://www150.statcan.gc.ca/n1/daily-quotidien/210319/dq210319b-eng.htm