Home values spur consumer debt in Vancouver
Posted August 10, 2016 9:09 am.
Last Updated August 10, 2016 10:59 am.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – Consumers in BC and Ontario “are exhibiting robust credit activity” according to TransUnion. The credit monitoring agency says the two provinces, that lead the national economy, have had modest increases in their non-mortgage consumer debt while delinquency levels are stable, which it says is a good thing for the overall economy.
Vancouver’s average consumer debt in the second quarter was $25,199, its first time above $25,000 and 4.6 per cent higher than a year earlier. TransUnion Director of Canadian Research and Analysis Jason Wang says low interest rates and high home values are factors.
“You feel like you have a lot of equity. You can go out and have a dinner and buy something that you may not normally or necessarily buy, but because you feel like you have higher net worth, you go out and buy that and put it on a credit product.” And that means things like a credit card or installment loan.
Delinquencies are sharply higher in Alberta due to economic weakness because of low oil prices. Loans overdue by at least 90 days were about three per cent of the province’s total, up 15 per cent from a year ago.
