Household debt growth slowing: StatsCan

Household debt continued to edge higher in March, albeit at a much slower rate than at the same time last year, Statistics Canada reports.

The national statistical agency reported that total household debt rose by 0.2% in the month, up $6.9 billion from the previous month to $2.84 trillion.

The monthly rise was down notably from the 0.7% growth rate in March 2022, as the growth in mortgage debt slowed to 0.3% from 0.8% in March last year.

Mortgage debt growth was unchanged from the previous four months as the housing market showed signs of rebounding, with existing home sales volumes and prices both rising in March.

But the growth rate for other forms of debt slowed to near zero — rising just 0.02% in the month, down from 0.3% in February.

StatsCan reported that the growth rate for credit card debt dropped to 0.5% in March, a sharp deceleration from February’s 1.3% growth rate.

Additionally, outstanding balances on home equity lines of credit (HELOCs) decreased by 0.4% in March, it noted. HELOC balances declined by 0.3% in February.

Staff

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