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International Banking and Canadian Economic Insights

Canadian Household Credit Public policy changes have moderated growth in household credit Total household credit grew at +3.5% annually in nominal terms in Q2/19 vs 2008 peak of +12.2% annually • Consumer loans excluding mortgages (cards, HELOCS, unsecured lines, auto loans, etc.) grew at +3.4% annually in Q2/19 vs > 5% in late 2017 Mortgage credit grew at +3.5% annually in Q2/19 vs 2008 peak of 13% HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH 25 20 20 %, 3-month moving average 15 y/y % 10 change сл 5 0 -5 m/m% change, SA 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. 25 25 %, 3-month moving average 20 20 15 10 5 LO 0 -5 25 %, 3-month moving average 20 y/y % change 15 y/y % change 10 m/m% m/m% 5 change, SA change, SA 0 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. -5 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. Scotiabank. 46
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