Canadian consumer debt reached a new peak of $2.4 trillion during the second quarter, according to Equifax!
The central bank’s interest policy rate at a 22-year high of 5%, have done their work in slowing down consumer spending, Equifax said. Mortgage debt showed a mere 1% increase from Q1 to Q2 2023.
Mortgage delinquencies are on the rise, especially in provinces like Ontario (up by 86.9% annually) and British Columbia (up by 33.9%).
“Additionally, payment shocks for newly renewed mortgages and upcoming renewals are poised to impact consumer finances, particularly for those facing mortgage terms that extend beyond their expected retirement age, leaving them with limited options for reducing monthly payment costs.”
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