Embracing Fintech
CA: Growth in Household Credit
•
Total household credit growth, in annual nominal terms, had slowed considerably since the 2007 peak of
13.4% y/y. But household credit growth has picked up rapidly throughout 2021 and into 2022, reaching
9.1% y/y for the rolling quarter ending May. 2022, the highest rate since mid-2010.
• Consumer loans excluding mortgages (i.e., cards, HELOCS, unsecured lines, auto loans, etc.)
grew by 4.0% y/y for the rolling quarter ending May. 2022. Consumer loan growth has trended downward
since late-2000 highs of over 16.6% y/y and declined further during the pandemic on refinancing into
secured credit, but the most recent few quarters reflect signs of strengthening consumer demand and
spending.
• Mortgage credit grew at 10.4% y/y in the rolling quarter ending May. 2022 vs the 2007 peak of 14.1% y/y.
Underlying demand, pandemic-induced moves, and relatively low five-year rates have driven a rebound
in the pace of growth. However, early signs of slowing mortgage growth are showing amidst higher rates.
Household Credit Growth
Consumer Loan Growth
Residential Mortgage Growth
20
%, 3-month moving average
y/y %
15
change
10
5
m/m%
change,
SA
0
01 03 05 07 09 11 13 15 17 19 21
Sources: Scotiabank Economics,
Statistics Canada.
%, 3-month moving average
25
20
y/y%
change
15
10
5
о
20
%, 3-month moving average
15
y/y%
change
10
5
m/m%
change,
SA
-5
-10
m/m%
change, SA
-15
-20
0
01 03 05 07 09 11 13 15 17 19 21
Sources: Scotiabank Economics,
Statistics Canada.
01 03 05 07 09 11 13 15 17 19 21
Sources: Scotiabank Economics,
Statistics Canada.
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