CMHC And Equifax Sound The Alarm
Household debt in Canada has climbed to $2.55 trillion, while non-mortgage debt hit a national average of $21,859 per consumer.
High housing costs, inflationary pressures, and rising unemployment…these are not just numbers – these are cracks beginning to show on the surface of Canada’s economy.
They signal a structural tension that is pulling the Canadian economy in two very different directions, one where cautious consumers are trying to pay down debt and hold the line, and another where younger borrowers and lower-income households are slipping further behind.
According to CMHC’s most recent mortgage consumer survey, 20% of those renewers used one credit facility to pay off another.
One of the most telling insights from the report isn’t about mortgages at all. On one side, we see consumers attempting to be fiscally responsible. Credit card spending fell by $107 per month per cardholder, reaching the lowest level since March 2022.
As more Canadians fall behind on payments, their ability to qualify for a mortgage or even stay current on an existing one erodes. This is further reflected in CMHC’s mortgage consumer survey, where 70% of borrowers cited economic reasons as their primary concern.
Equifax’s report ends on a cautiously optimistic note, highlighting reduced credit card usage and potential stabilization in some delinquency segments. But the road ahead is rocky.
Full Read:
- Storeys – https://storeys.com/cmhc-equifax-alarm-canada-mortgage-market/