Oil producing provinces such as Newfoundland and Labrador, and Saskatchewan recorded the largest increase in consumer delinquency rates for non-mortgage products – up 30 bps and 19 bps respectively YoY in Q1 2019. Conversely, Ontario recorded a 16 bps drop over the same period.
90+Day Delinquency Rate YoY Changes for Non-Mortgage Loans
“We are observing an expansion in the Canadian consumer credit market against a backdrop of moderating economic growth, signs of increasing inflationary pressures and higher interest rates. It’s a big positive that this credit growth hasn’t come at the expense of serious delinquencies, which remained broadly flat”
Matthew Fabian, Director, Research and Industry
Average Consumer Balance, by Product*
*Represents the average balance held by a consumer across each type of product (consumers can have multiple instances of same product)
The total number of consumers with access to credit grew 1.3% year-on-year (YoY) to 28.9 million. Overall consumer balances increased at an even faster pace, up 4.2% over the same period, with total balances reaching $1.85 trillion in Q1 2019.
“The Canadian consumer credit market remains robust with delinquencies rates staying broadly stable despite a growth in overall lending levels. However, the economy is slowing and continues to face some headwinds, which could eventually create some pressure on segments of consumers that could impact credit demand and their ability to service their debt obligations. As we progress through this business cycle, lenders will need to remain vigilant and continue to adjust their underwriting strategies and portfolio management strategies to accommodate changing macro-economic conditions and consumer demand,”
Matthew Fabian, Director, Research and Industry Insights
IIR Q1 2019: Insights
Stay on top of recent Industry Insights Report with our latest press release. The newly released Q1 2019 TransUnion (NYSE: TRU) Industry Insights Report shows that there was continued positive growth in the Canadian credit market in the first quarter of the year.