Canadian delinquency rate lowest in more than 6 years

By Special to MoneySense on December 2, 2015
Estimated reading time: 2 minutes

Total consumer debt equalled nearly $1.59 trillion

This article is 9 years old. Some details may be outdated.

OTTAWA – Canadians in oil-producing provinces are having a harder time paying their bills, even as the national delinquency rate improves to its lowest level in more than six years. A report by consumer credit monitoring firm Equifax says the national 90-day delinquency rate, excluding mortgages, slipped to 1.05 per cent, down from 1.10 per cent a year ago and the lowest since Equifax began reporting the figures. Regina Malina, senior director of decision insights at Equifax Canada, says the average delinquency rate for Western Canada is below the national average, but it is rising. Equifax says the rates in Alberta, Saskatchewan, Manitoba rose 13.4 per cent, 8.5 per cent and 3.7 per cent respectively. How to get out of debt » The delinquency rate in Newfoundland and Labrador was up 5.8 per cent from a year ago. “Delinquency rates are an indicator that we follow closely and we are now seeing a negative effect in Western Canada,” Malina said. “The same holds true in Newfoundland — essentially anywhere in the country where the economy is impacted by oil.” Total consumer debt amounted to nearly $1.59 trillion, with nearly two-thirds of that accounted for by mortgage debt. The total borrowing was up from nearly $1.57 trillion in the second quarter of 2015 and $1.51 trillion a year ago. Mortgage Payment Schedule Calculator » Excluding mortgages, average consumer debt was $21,312 in the third quarter, up from $21,164 in the second quarter and $20,891 a year ago. Borrowing by Canadians and their ability to pay back their debts have been cited as a key risk for the economy. Record low interest rates have helped make it easier for Canadians to borrow more and helped fuel the housing market. However, worries have been raised about what will happen when interest rates eventually start to go up. “Consumer debt levels continue to rise and those numbers are sure to increase following the holidays,” Malina said. “However, despite other market research we’ve seen predicting a boom in spending over the holidays, we expect most Canadians will continue to manage their spending wisely. Demand for new credit has eased off.”

Comments Cancel reply

Canadian couple in their first home happy the BoC held its rate.

Columns

Making sense of the Bank of Canada interest rate decision on June 4, 2025

News

BoC held its rate on June 4—here’s why

The Bank of Canada held its key rate at 2.75%, citing high uncertainty, tariffs and more.

BoC held its rate on June 4—here’s why

A Canadian family moving, thanks the BoC rate cuts, which improved mortgage affordability in Vancouver, Toronto and Hamilton

Mortgages

How much income do you need to buy a home in Canada? A look at home affordability in April 2025

A young woman surrounded by moving boxes in her new home

Mortgages

Looking for a mortgage in B.C.? Don’t limit your options to the big banks

MoneyFlex

Gen Z guide to getting more in a tough economy: How to negotiate salary, car deal, phone bills and more

From rent to hair styling, phone to internet plans, these expenses are surprisingly negotiable. How every young Canadian can...

Gen Z guide to getting more in a tough economy: How to negotiate salary, car deal, phone bills and more

A women looking over at a desk with a laptop and has her hands clasped.

News

What is a consumer proposal? How does it work?

If spiralling debt has you on the brink, a consumer proposal may be the right move. Here’s how it...

What is a consumer proposal? How does it work?

Education Money

Contributing to your grandchild’s RESPs: What grandparents need to know

Helping a grandchild pay for post-secondary education is a smart gift that keeps giving. Here’s how to maximize your...

Contributing to your grandchild’s RESPs: What grandparents need to know

Two young kids in winter clothes smile and stick out their tongues

Education Money

You opened an RESP—now what?

A registered education savings plan is the best way to save for a child’s education. Here’s how to use...

You opened an RESP—now what?

Education Money

Reducing risk in an RESP: How to invest as your kid approaches college or university

An RESP’s investment mix should evolve over time. Here’s how to focus on growing and then preserving your savings...

Reducing risk in an RESP: How to invest as your kid approaches college or university

Two young men are in the library, using the computers as they're smiling. Why? Because they're not stressed about money and they've budgeted well.

MoneyFlex

How to manage money as a student

Here are several ways you can create habits that encourage saving and smart spending so that college or university...

How to manage money as a student

Canadian delinquency rate lowest in more than 6 years

Comments Cancel reply

Related Articles

Making sense of the Bank of Canada interest rate decision on June 4, 2025

BoC held its rate on June 4—here’s why

How much income do you need to buy a home in Canada? A look at home affordability in April 2025

Looking for a mortgage in B.C.? Don’t limit your options to the big banks

Gen Z guide to getting more in a tough economy: How to negotiate salary, car deal, phone bills and more

What is a consumer proposal? How does it work?

Contributing to your grandchild’s RESPs: What grandparents need to know

You opened an RESP—now what?

Reducing risk in an RESP: How to invest as your kid approaches college or university

How to manage money as a student