Energy Portfolio and Canadian Mortgage Overview slide image

Energy Portfolio and Canadian Mortgage Overview

Canadian Consumer Indebtedness Public-policy changes moderated growth in household credit, but it's picking up again Total household credit grew at 4.2% in annual nominal terms in January 2020 vs the 2008 peak of 12.2% annually • Consumer loans excluding mortgages (i.e., cards, HELOCS, unsecured lines, auto loans, etc.) grew at 2.4% annually in Q4/19 vs > 5% in late 2017 Mortgage credit grew at 4.8% annually in Q4/19 vs 2008 peak of 13%. Lower five-year rates are driving a rebound in the pace of growth. HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH 25 %, 3-month moving average 20 15 y/y % 10 5 0 change m/m% change, SA 25 %, 3-month moving average 20 20 25 %, 3-month moving average 20 y/y % 15 change 15 y/y% change 10 10 10 m/m% 5 change, SA 0 m/m% 5 change, SA 0 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Bank of Canada. -5 -5 -5 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Bank of Canada. 00 02 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, Bank of Canada. 74
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