Canadian Retail: Loans and Provisions Financial Overview
Growth in Household Credit
Total household credit, in annual nominal terms, has slowed considerably since the 2008 peak of 12.2%
annually. However, the Q3-2020 growth of 3.5% surpasses that of the last four quarters.
• Consumer loans excluding mortgages (i.e., cards, HELOCS, unsecured lines, auto loans, etc.)
fell by 2.2% annually in Q3-2020. Consumer loan growth has trended downward since mid-2000 highs
of almost 15% annually, with recent months' negative growth induced by consumer spending pullbacks.
Mortgage credit grew at 5.4% annually in Q3-2020 vs the 2008 peak of 13%. Underlying demand
coupled with lower five-year rates are driving a rebound in the pace of growth.
HOUSEHOLD CREDIT GROWTH
-5
20
%, 3-month moving average
15
y/y%
change
10
5
m/m%
change,
SA
0
00 02 04 06 08 10 12 14 16 18 20
Sources: Scotiabank Economics, Bank of Canada.
CONSUMER LOAN GROWTH
25
25
[%, 3-month moving average
20
yly%
change
15
10
5
0
m/m%
-5 change, SA
-10
-15
RESIDENTIAL MORTGAGE GROWTH
-20
-5
00 02 04 06 08 10 12 14 16 18 20
Sources: Scotiabank Economics, Bank of Canada.
20
%, 3-month moving average
15
y/y %
change
10
5
m/m%
change,
SA
0
00 02 04 06 08 10 12 14 16 18 20
Sources: Scotiabank Economics, Bank of Canada.
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