Canadian Treasurer
 
 

August 18, 2016

Equifax Canada reports: Delinquency rate up for Millennials, seniors adding more debt

TORONTO, ONTARIO -- The delinquency rate among young millennials (18-25 years) hit 1.8 per cent in the second quarter of this year, an increase of 11.7 per cent from their 1.6 per cent rate in the second quarter of 2015. However young adults didn't add much debt over the past year with the average change at $167, while the debt obligations of seniors (65+ years) increased by $1,134 (8.2 per cent) to $15,001 according to Equifax Canada's Q2 2016 National Consumer Credit Trends Report.

Total consumer total debt (excluding mortgages) also remains on the rise. As of Q2 2016, Canadian consumers owe $1.666 Trillion, compared to $1.618 Trillion in Q1 2016 and $1.568 Trillion a year earlier, an increase of three per cent and 6.3 per cent, respectively.

"While debt among seniors has increased, they are also the only age group that saw its delinquency rate decrease over the past 12 months. They currently share the lowest delinquency rate, 0.9 per cent, with the 55-64 age group," said Regina Malina, senior director of decision insights at Equifax Canada. "For the most part, older Canadians have always demonstrated an ability to handle their spending and what they owe. Young people, and really everyone, should be reminded to practice good budget and money management habits. Great tips can be found on the Financial Consumer Agency of Canada's website".

Debt (excluding mortgages) & delinquency rates

Age Average Debt Average Debt Change Year-over-Year 
(Q2 2016 vs. Q2 2015)
Delinquency Rate Delinquency Rate Change Year-over-Year 
(Q2 2016 vs. Q2 2015)
18-25 $8,203 2.1% 1.8% 11.7%
26-35 $16,841 2.8% 1.6% 9.7%
36-45 $26,480 1.8% 1.3% 5.5%
46-55 $32,243 3.4% 1.0% 1.0%
56-65 $27,594 3.3% 0.9% 2.2%
65+ $15,001 8.2% 0.9% -2.4%
Canada $21,878 3.4% 1.1% 4.1%

On a debt classification basis, installment loan, auto loan and mortgage sectors are showing significant increases of 7.8 per cent, 7.6 per cent and 7.6 per cent year-over-year, respectively.

"Regional differences in debt and delinquencies are playing out as anyone would expect given the price of oil," added Malina. "Both lenders and borrowers are having to adjust to current conditions in their local economies."

Major city analysis - Debt (excluding mortgages) & delinquency rates

City Average Debt Average Debt Change Year-over-Year 
(Q2 2016 vs. Q2 2015)
Delinquency Rate Delinquency Rate Change Year-over-Year 
(Q2 2016 vs. Q2 2015)
Calgary $28,572 1.2% 1.1% 32.2%
Edmonton $26,691 1.7% 1.4% 39.0%
Halifax $23,374 3.3% 1.5% 6.2%
Montreal $17,091 4.0% 1.3% -2.9%
Ottawa $21,322 2.8% 1.0% -0.4%
Toronto $20,460 3.9% 1.3% -2.7%
Vancouver $24,267 3.5% 0.8% -9.1%
St. John's $24,721 3.0% 1.2% 21.2%

Province analysis - Debt (excluding mortgages) & delinquency rates

Province Average Debt Average Debt Change Year-over-Year 
(Q2 2016 vs. Q2 2015)
Delinquency Rate Delinquency Rate Change Year-over-Year 
(Q2 2016 vs. Q2 2015)
Ontario $21,570 3.7% 1.1% -3.9%
Quebec $18,489 4.1% 1.1% -3.3%
Nova Scotia $21,963 4.3% 1.7% 2.0%
New Brunswick $22,542 5.1% 1.7% -1.6%
PEI $21,822 4.6% 1.5% 5.4%
Newfoundland $23,074 4.6% 1.3% 19.4%
Eastern Region $22,382 4.6% 1.6% 3.8%
Alberta $27,753 1.6% 1.4% 40.3%
Manitoba $18,193 3.5% 1.2% 12.9%
Saskatchewan $24,276 4.0% 1.2% 22.7%
British Columbia $23,538 2.3% 1.0% -3.3%
Western Region $24,586 2.3% 1.2% 18.1%
Canada $21,878 3.4% 1.1% 4.1%

Data for this report, including scores, are sourced from Equifax Canada, the repository of the majority of credit transactions that occur in Canada. There are over 25 million unique Equifax consumer credit files. Transaction volumes for data are estimated at 105 million per month. Information provided in this report was adjusted to ensure that quarterly data reflects the results as of the last month of each quarter.

 

 

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