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Household Monthly Credit Aggregates Reveal Damaging Debt, Sept 2023

In September, the total credit liabilities of households increased $6.2 billion (+0.2%) to reach $2,881.6 billion. Real estate secured debt, composed of mortgage debt and home equity lines of credit, grew $5.0 billion (+0.2%). Household mortgage debt rose $5.6 billion (+0.3% every month; +3.2% on an annualized basis) in September, a slowdown in growth compared with August.

Household Monthly credit aggregates Reveal Damaging Debt, September 2023

Chart 1  Chart 1: Month-over-month change in household mortgage loans
Month-over-month change in household mortgage loans

Chart 2  Chart 2: Year-over-year growth in household mortgage and non-mortgage loans
Year-over-year growth in household mortgage and non-mortgage loans

Non-mortgage loan debt increased $0.6 billion (+0.1%) in September. Every month, outstanding balances on home equity lines of credit decreased $0.6 billion (-0.4%), while credit card debt with chartered banks rose $0.7 billion (+0.7%). The remaining non-mortgage debt categories edged up $0.5 billion (+0.1%).

Household Monthly credit aggregates Reveal Damaging Debt, September 2023

Private non-financial corporations borrowing

Total credit liabilities of private non-financial corporations increased $6.5 billion (+0.3%) to reach $2,029.3 billion in September. Non-mortgage loans with chartered banks rose $4.2 billion (+0.6%), while non-mortgage loans from government lenders decreased $0.6 billion (-1.1%).

Chart 3  Chart 3: Private non-financial corporation borrowing
Private non-financial corporations borrowing

Overall borrowing by private non-financial corporations, composed of the increase in the level of seasonally unadjusted outstanding loans and the net transactions in debt securities, was $5.0 billion in September. Private non-financial corporations recorded net issuances of $4.5 billion in debt securities.

  Note to readers

Unless otherwise stated, this article presents data adjusted for seasonality.

Annualized percentage changes shown in this release are calculated by taking the seasonally adjusted value for a given debt item and applying the following formula: (((debt[m]/debt[m-1]) ^ 12 – 1) * 100), where “m” is the reference month.

Revisions

This article on the monthly credit aggregates for September 2023 includes revised estimates from January to August 2023. These data incorporate new and revised data and updated data on seasonal trends.

Overview of the monthly credit aggregates

The monthly credit aggregates break down a portion of the quarterly National Balance Sheet Accounts (NBSA) by month. They provide details on lending to households and non-financial corporations—in other words, the stock of these sectors’ outstanding liabilities from the debtor perspective—across a range of credit instruments, including mortgage loans, non-mortgage loans and debt and equity securities. The aggregates cover all lending sectors, including chartered banks, non-bank deposit-taking institutions, other financial corporations, government and other lenders. The estimates are presented as booked-in-Canada t