Monthly credit aggregates, July 2023
In July, the total credit liabilities of households increased $7.6 billion (+0.3%) to reach $2,869.5 billion. Real estate secured debt, composed of both mortgage debt and home equity lines of credit, grew $5.1 billion (+0.2%). Household mortgage debt rose $5.9 billion (+0.3% on a monthly basis; +3.4% on an annualized basis), representing the second consecutive month of accelerated growth following three consecutive months of slowdown.
Non-mortgage loan debt increased $1.7 billion in July, representing a 2.9% rise on an annualized basis, which was faster than the pace recorded in June (+0.8% annualized). On a monthly basis, outstanding balances on home equity lines of credit decreased $0.8 billion (-0.5%) in July, while credit card debt with chartered banks increased $1.3 billion (+1.4%) and the remaining non-mortgage debt categories were up $1.2 billion (+0.2%).
Private non-financial corporation borrowing
Total credit liabilities of private non-financial corporations ($2,005.7 billion in July) remained stable in the month. Decreases occurred for debt securities (-0.2%) and government non-mortgage loans (-0.6%), while non-mortgage loans with chartered banks edged up 0.1%.
Overall borrowing by private non-financial corporations, composed of the increase in the outstanding level of seasonally unadjusted loans and the net transactions in debt securities, was $1.7 billion in July. Private non-financial corporations recorded net issuances of $0.2 billion in debt securities.
Note to readers
Unless otherwise stated, this release 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.
This release of the monthly credit aggregates for the month of July 2023 includes revised estimates from January to June 2023. These data incorporate new and revised data, as well as 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 to capture activity within Canada, with either domestic or non-resident lenders. In addition, amounts are reported on an end-of-period basis (i.e., the value of the stock of an asset on the final day of the month). The third month of each quarter is benchmarked to the corresponding quarterly release of the NBSA.
Household sector borrowing is divided into financing in the form of non-mortgage loans (i.e., funds principally for consumption) and mortgage loans (i.e., debt acquired to finance the purchase of a property, whether residential or non-residential in nature). Household borrowing in the form of mortgage debt and home equity lines of credit is referred to as real estate secured debt and presents a further delineation of household liabilities associated with residential and non-residential properties.
As with the household sector, non-financial corporation borrowing is divided into non-mortgage and mortgage loans. However, overall credit liabilities of non-financial corporations also include their borrowing in the form of debt securities, with terms to maturity that are both short term and long term in duration.
The NBSA are composed of the balance sheets of all sectors and subsectors of the economy. The main sectors are households, non-profit institutions serving households, financial corporations, non-financial corporations, government and non-residents. The NBSA cover all national non-financial assets and all financial asset-liability claims outstanding in all sectors and, similarly, present stocks at the end of each quarter.
Estimates are available on a seasonally adjusted basis to improve the interpretability of period-to-period changes in debt. For information on seasonal adjustment, see "Seasonally adjusted data – Frequently asked questions."
For more information on the concepts, methodologies and classifications used to compile these monthly estimates, please see the document "Guide to the Monthly Credit Aggregates."
Data on the monthly credit aggregates for August will be released on October 20.
As a complement to this release, the documents "Guide to the Monthly Credit Aggregates" and "A preview of revisions to the Financial and Wealth Accounts, 1990 to 2022," which are part of Latest Developments in the Canadian Economic Accounts (13-605-X), are available.
As a complement to this release, the data visualization products "Financial accounts on a from-whom-to-whom basis, selected financial instruments," "Distributions of Household Economic Accounts, Wealth: Interactive tool" and "Securities statistics," which are part of Statistics Canada – Data Visualization Products (71-607-X), are also available.
The Economic accounts statistics portal, accessible from the Subjects module of the Statistics Canada website, provides an up-to-date portrait of national and provincial economies and their structure.
The User Guide: Canadian System of Macroeconomic Accounts (13-606-G) is available.
The Methodological Guide: Canadian System of Macroeconomic Accounts (13-607-X) is available.
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