Is Canada’s borrowing finally entering a lull?

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While the Canadian household debt balance has broken all previous records by reaching a total of $2.13 trillion in July (up by 3.77% compared to the same time last year), data from the Bank of Canada also indicated a recent sharp decline in the growth of these accountabilities.

Canadian mortgage debt increased by 3.7% in that month (up to $1.52 trillion), which was over 40% lower on a year-over-year basis. This was the slowest pace since June 2001, Better Dwelling reported.

Similarly, the national consumer debt load grew by 4% in July (up to $616 billion), approximately 20% below last year and the slowest rate since September 2016.

The historic debt load has proven to be a significant source of anguish for Canadian households.

In a recent study conducted by Ipsos for insolvency practice MNP Debt, two-thirds of Canadians expressed deep regrets about their debt, with 41% regretting the total debt they have incurred in their lives, and 37% citing anxiety caused by their current debt levels.

The survey also found that 44% of Canadians are afraid that they will not be able to pay for their day-to-day and family expenses in the next 12 months without taking on further debt.

Ephraim Vecina

Ephraim Vecina


East Coast Mortgage Brokers is Newfoundland and Labrador’s premier mortgage company. Founded in 2010, we work with Canada’s top lenders to ensure our clients get the best deal for their mortgage.