Canada’s consumers owe $1.8 trillion as mortgages soar

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New figures from one of Canada’s largest banks and mortgage lenders shows the continuing growth of household debt.

RBC’s report reveals that total consumer debt is now $1.8 trillion (at the end of September) with mortgages contributing the lion’s share of the increase.

There has been a five per cent growth in debt since October 2014 and a 7.4 per cent rise since the end of the second quarter of 2015.

In the 12 months to the end of September residential mortgages increased by 5.9 per cent ($74.7 billion) while other consumer debt slowed.

Home loans increased by nine per cent of the total in the three months to the end of September.

Mortgages make up 71.2 per cent of household debt. Those home loans held by chartered banks make up 52.8 per cent of all household debt; non-banks hold 15 per cent; securitized mortgages make up 3.2 per cent; NHA MBS make up 2.8 per cent.

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