Global Wealth Management and Banking Overview
Growth in Household Credit
• Total household credit, in annual nominal terms, has slowed considerably since the 2007 peak of 13.5%
annually. However, the Q4-2020 growth of 5.1% y/y surpassed the average of the previous four quarters
• Consumer loans excluding mortgages (i.e., cards, HELOCs, unsecured lines, auto loans, etc.)
fell by 1.0% annually in Q4-2020. Consumer loan growth has trended downward since late-2000 highs
of over 18% annually, with recent months' negative growth induced by consumer spending pullbacks
Mortgage credit grew at 7.3% annually in Q4-2020 vs the 2007 peak of 14.0%. Underlying demand
coupled with lower five-year rates drove a rebound in the pace of growth
Household Credit Growth
20
20
[%, 3-month moving average
y/y %
15
change
10
10
m/m%
5
change,
SA
0
T
Consumer Loan Growth
%, 3-month moving average
25
20
225
15
10
O
y/y %
change
Residential Mortgage Growth
20
%, 3-month moving average
15
yly%
change
10
-5
-10
-15
m/m%
change, SA
5
m/m%
change,
SA
-20
0
01 03 05 07 09 11 13 15 17 19 21
01 03 05 07 09 11 13 15 17 19 21
15
17
19 21
Sources: Scotiabank Economics,
Sources: Scotiabank Economics,
Statistics Canada.
Statistics Canada.
01 03 05 07 09 11 13
Sources: Scotiabank Economics,
Statistics Canada.
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