Equifax-Keeping up with the Economy: Canadians Continue to Adapt their Credit and Financial Decisions

Core Insights - Consumer debt in Canada reached $2.46 trillion at the end of Q1 2024, a 3.5% increase from the previous year [2] - Mortgage delinquency rates are rising, particularly in Ontario and British Columbia, with Ontario's severe delinquency balance exceeding$ 1 billion for the first time [7][10] - Financial stress is evident as consumers adapt their credit decisions, with a notable increase in lender switching and credit score checks [3][6] Consumer Debt Trends - Total consumer debt rose to $2.46 trillion, marking a 3.5% year-over-year increase [2] - Mortgage debt, comprising 74.4% of total consumer debt, increased by 3.1% year-over-year, while new mortgage originations hit an all-time low [4] - The average loan value for new mortgages reached$ 321.7K, up 3.1% from the previous year [4] Mortgage Market Dynamics - Alberta's housing market showed resilience with a 10.6% increase in new mortgage originations compared to Q1 2023 [5] - Consumers are extending mortgage lengths to reduce payments, with 37.1% extending amortization terms [6] - Payment shocks are affecting consumers, with nearly 9% of mortgage renewals seeing monthly payments increase by over $500 [6] Delinquency Rates and Financial Strain - Delinquency rates for credit products are rising, with over 1.26 million consumers missing at least one payment in Q1 2024, a 12.2% increase from Q1 2023 [10] - Ontario, British Columbia, and Quebec experienced significant increases in delinquency rates, with Ontario's rate rising by 28.18% year-over-year [14] - Credit card delinquencies are increasing, with full-payment rates dropping from 65.6% to 64.5% [11] Age and Regional Analysis - Average debt for Canadians in Q1 2024 was$ 21,276, with a year-over-year increase of 1.77% [14] - The delinquency rate for the 18-25 age group was 1.80%, showing a 7.02% increase year-over-year [13] - Major cities like Toronto and Vancouver have seen delinquency rates rise above pre-pandemic levels, with Toronto's rate increasing from 0.09% to 0.14% [8]