Average Non-Mortgage Debt In Canada Surpasses $21,000
The amount of non-mortgage debt owed by Canadians is growing alongside inflation, according
to a report by consumer credit agency Equifax Canada.
The report says the average non-mortgage debt per Canadian totaled $21,128 in the second
quarter of this year, up 2.4% compared with a year ago.
Equifax Canada said the rising debt load is coming as consumers struggle to keep up with
inflation and increased prices for items ranging from gasoline to groceries.
Equifax said credit card balances across Canada are now at their highest level since the fourth
quarter of 2019, and that the average credit limit on new cards is over $5,800, the highest it has
been in at least seven years.
Overall, Equifax said total non-mortgage debt rose to $591.4 billion in Canada, up 5.2% from a
year ago, while total consumer debt, including mortgages, rose to $2.32 trillion in the second
quarter, up 8.2% from the same period of 2021.
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The report said that the average loan amount for new mortgages in Canada was $367,000 in
Q2, with average loans for first-time homebuyers topping $430,000.
Equifax Canada also noted that consumer insolvencies during this year’s second quarter rose to
their highest level since before the COVID-19 pandemic began in March 2020.