Analysis in Brief
Trends in household non-mortgage loans: The evolution of Canadian household debt before and during COVID-19

Acknowledgments

This work would not have been possible without the invaluable contributions and expertise of innumerable dedicated staff from Statistics Canada including Carolina Cabañas-Leòn, Lydia Couture, Gilbert Côté, Yves Gauthier, Thomas Haines, Roland Hébert, Lei He, Dragos Ifrim, Alexander Li, Daniela Ravindra, Zaid Shadid, and Jennifer Withington.

Introduction

Policy makers and financial markets pay close attention to household debt to assess prospects for economic growth as well as risks to financial stability.^{Note 1} In the Bank of Canada’s recent Financial System Review^{Note 2} household indebtedness was identified as one of the key vulnerabilities^{Note 3} in the financial system. It warrants monitoring due to the potential impact it may have on the economy and the fiscal health of Canadian households and those who lend to them. When it comes to debt, households rely on two principal forms of financing. The first, mortgage debt, involves the incurrence of a debt obligation related to the purchase of a property with the latter serving as the collateral. The recent and rapid accumulation of mortgage debt and its potential impact on the financial system continues to be discussed at length in the news and among policy-makers especially given the strength of the Canadian housing market over the course of the pandemic.^{Note 4} The pandemic’s effect on mortgage borrowing was reviewed in an earlier segment of this COVID-19 debt series in a paper titled “Trends in the Canadian Mortgage Market: Before and during COVID-19”, which focused on the record amount of new mortgage debt drawn in 2020 despite pandemic restrictions.^{Note 5} The second form of financing, and the one on which this review will focus, involves non-mortgage debt, which is the incurrence of a liability to obtain funds that can be directed to a wide variety of uses. The importance of this type of debt was discussed at length in the Bank of Canada’s annual Financial System Review, with non-mortgage loans accounting for 32% of all outstanding debt as of March 2021, and mortgage debt comprising the remaining 68%.^{Note 6} A general distinction can be drawn between non-mortgage debt related to consumption, such as the purchase of durable and non-durable goods, and debt unrelated to current consumption, including for investment in financial products or financing for the purchase of fixed assets including renovations. Examples of these uses are provided in the appendix, although given the fungible nature of money, in most cases it is impossible to ultimately determine the precise uses of non-mortgage financing.

Household non-mortgage debt’s growth leading up to, and during the pandemic

Household non-mortgage debt in Canada has grown steadily since the mid-1990s, as interest rates have continued to decline from their peak in the early 1990’s, and credit has become easier to access. As banks tailored new credit products to customers following the 1990’s recession, strong annual growth was observed beginning in 1997, which continued for the next ten years with year-over-year growth reaching a peak in 2005. Following the financial crisis in 2009, annual growth in non-mortgage debt slowed, matching the rate of nominal gross domestic product (GDP) where it has since remained. Non-mortgage borrowing saw a small bump in February 2020, as fears about the impacts of COVID-19 began to set in and households stocked up on supplies and sought to bolster their financial positions against an uncertain future. However, as lockdowns came into full effect and non-essential businesses were forced to close their doors in late March, household consumption plummeted, and the year-over-year growth in non-mortgage debt slowed to near zero in April. Despite resilient household incomes and the roll-out of government support measures to Canadians, households had few places to spend, and many used the pandemic lockdown as an opportunity to save and pay down existing debt. As disposable incomes surged, May 2020 marked the first year-over-year decline in the outstanding balance of non-mortgage debt in nearly three decades. Growth remained negative for the duration of 2020 and into 2021, with March 2021 balances still $11.5 billion below their pre-pandemic levels.

Data table for Chart 1



Data table for Chart 1
Table summary
This table displays the results of Data table for Chart 1. The information is grouped by Reference Period (appearing as row headers), Household non-mortgage loans (left axis) and Year-over-year growth in household non-mortgage loans, seasonally adjusted (right axis), calculated using billions $CAD and percent units of measure (appearing as column headers).

Reference Period	Household non-mortgage loans (left axis)	Year-over-year growth in household non-mortgage loans, seasonally adjusted (right axis)
	billions $CAD	percent
1990
January	121	Note ...: not applicable
February	122	Note ...: not applicable
March	123	Note ...: not applicable
April	123	Note ...: not applicable
May	124	Note ...: not applicable
June	124	Note ...: not applicable
July	125	Note ...: not applicable
August	125	Note ...: not applicable
September	126	Note ...: not applicable
October	126	Note ...: not applicable
November	126	Note ...: not applicable
December	126	Note ...: not applicable
1991
January	127	4.27
February	127	3.73
March	126	3.03
April	127	3.30
May	128	3.51
June	128	3.42
July	128	3.18
August	129	3.00
September	128	2.35
October	128	2.11
November	128	1.67
December	128	1.44
1992
January	129	1.47
February	129	1.51
March	129	1.72
April	129	0.93
May	129	0.44
June	129	0.32
July	129	0.64
August	129	0.35
September	129	0.82
October	130	0.96
November	129	0.64
December	129	0.82
1993
January	130	0.83
February	130	0.67
March	130	1.02
April	130	1.28
May	131	1.69
June	131	1.83
July	132	1.93
August	133	2.77
September	133	2.45
October	133	2.55
November	134	3.75
December	135	4.42
1994
January	135	4.35
February	136	4.71
March	136	5.08
April	137	4.99
May	137	4.65
June	137	4.57
July	138	4.49
August	138	4.02
September	139	4.99
October	141	5.82
November	142	5.73
December	143	5.61
1995
January	143	5.82
February	143	5.72
March	144	5.36
April	145	5.68
May	145	6.23
June	146	6.49
July	147	6.64
August	148	6.98
September	149	6.77
October	150	6.31
November	151	6.61
December	152	6.39
1996
January	153	6.90
February	154	7.51
March	155	7.97
April	156	8.17
May	157	8.26
June	159	8.80
July	160	8.71
August	160	8.53
September	161	8.41
October	162	8.59
November	163	8.03
December	164	8.07
1997
January	165	7.89
February	167	8.36
March	169	9.12
April	170	9.04
May	172	9.10
June	173	8.57
July	174	9.04
August	176	9.83
September	179	10.75
October	180	10.95
November	182	11.59
December	184	12.52
1998
January	186	12.79
February	188	12.25
March	190	12.40
April	193	13.31
May	194	12.73
June	195	13.24
July	197	13.25
August	198	12.45
September	199	11.48
October	200	11.18
November	201	10.29
December	202	9.63
1999
January	204	9.44
February	206	9.66
March	208	9.17
April	209	8.25
May	210	8.64
June	212	8.33
July	213	7.83
August	213	7.72
September	215	8.15
October	217	8.40
November	220	9.53
December	222	9.82
2000
January	218	9.82
February	234	10.67
March	230	10.67
April	231	10.35
May	233	10.58
June	233	10.25
July	236	10.97
August	238	11.74
September	241	11.70
October	243	11.90
November	245	11.25
December	246	10.54
2001
January	248	10.54
February	248	8.11
March	249	8.11
April	250	8.28
May	251	7.87
June	252	8.04
July	254	7.51
August	255	6.98
September	256	6.59
October	257	5.94
November	259	5.73
December	260	5.92
2002
January	262	5.60
February	264	6.21
March	266	6.87
April	267	7.03
May	269	7.02
June	270	7.05
July	272	7.15
August	274	7.60
September	277	8.04
October	279	8.41
November	281	8.50
December	282	8.58
2003
January	283	8.09
February	285	7.90
March	286	7.41
April	289	7.91
May	291	8.43
June	294	8.85
July	298	9.60
August	298	8.64
September	300	8.46
October	302	8.39
November	305	8.76
December	308	9.10
2004
January	311	9.75
February	313	9.88
March	316	10.62
April	319	10.64
May	323	10.92
June	326	11.00
July	329	10.47
August	332	11.18
September	333	11.00
October	337	11.35
November	341	11.81
December	345	11.83
2005
January	351	12.83
February	356	13.76
March	361	14.18
April	363	13.71
May	365	13.12
June	369	13.01
July	371	12.61
August	374	12.73
September	377	13.01
October	380	12.78
November	382	12.06
December	385	11.77
2006
January	389	10.89
February	391	9.90
March	395	9.44
April	398	9.51
May	402	9.97
June	404	9.59
July	408	10.08
August	412	10.19
September	416	10.53
October	419	10.36
November	423	10.62
December	427	10.98
2007
January	431	10.89
February	434	11.00
March	438	11.03
April	442	11.23
May	447	11.37
June	451	11.72
July	455	11.65
August	459	11.37
September	462	10.86
October	465	11.00
November	468	10.71
December	470	10.05
2008
January	474	10.01
February	477	9.94
March	482	9.96
April	485	9.74
May	489	9.39
June	493	9.16
July	497	9.03
August	499	8.87
September	502	8.82
October	504	8.42
November	505	7.75
December	508	8.02
2009
January	511	7.84
February	515	7.96
March	519	7.66
April	522	7.48
May	526	7.39
June	530	7.57
July	533	7.27
August	536	7.34
September	539	7.25
October	545	8.02
November	548	8.65
December	551	8.43
2010
January	552	8.00
February	554	7.50
March	555	6.99
April	557	6.73
May	557	6.02
June	557	5.03
July	559	4.90
August	561	4.61
September	563	4.49
October	566	3.82
November	568	3.69
December	570	3.39
2011
January	577	4.52
February	577	4.14
March	577	3.91
April	580	4.08
May	580	4.07
June	582	4.50
July	583	4.42
August	584	4.21
September	585	3.93
October	585	3.43
November	590	3.81
December	591	3.77
2012
January	592	2.48
February	592	2.54
March	592	2.71
April	594	2.42
May	596	2.70
June	597	2.69
July	598	2.46
August	601	2.87
September	603	3.05
October	604	3.31
November	605	2.57
December	607	2.65
2013
January	607	2.56
February	613	3.60
March	613	3.55
April	614	3.48
May	616	3.37
June	616	3.16
July	619	3.52
August	621	3.24
September	622	3.15
October	623	3.04
November	625	3.19
December	627	3.37
2014
January	629	3.65
February	631	2.89
March	632	3.04
April	633	3.10
May	635	3.14
June	637	3.42
July	639	3.35
August	642	3.39
September	644	3.60
October	646	3.77
November	648	3.72
December	650	3.59
2015
January	652	3.61
February	653	3.55
March	656	3.71
April	658	3.95
May	661	4.16
June	664	4.26
July	666	4.16
August	668	4.06
September	670	3.98
October	671	3.82
November	673	3.88
December	674	3.72
2016
January	676	3.79
February	678	3.87
March	681	3.95
April	685	4.11
May	688	3.97
June	690	3.84
July	692	3.92
August	692	3.60
September	693	3.40
October	696	3.73
November	698	3.78
December	702	4.22
2017
January	707	4.47
February	710	4.68
March	716	5.00
April	719	4.91
May	722	4.97
June	725	5.09
July	729	5.35
August	730	5.52
September	732	5.63
October	734	5.44
November	736	5.38
December	738	5.07
2018
January	740	4.77
February	743	4.61
March	747	4.35
April	751	4.47
May	756	4.74
June	760	4.86
July	764	4.79
August	766	4.95
September	770	5.18
October	772	5.15
November	775	5.30
December	775	5.01
2019
January	774	4.58
February	775	4.35
March	778	4.19
April	784	4.31
May	787	4.10
June	791	4.02
July	793	3.77
August	794	3.61
September	795	3.31
October	796	3.20
November	797	2.80
December	798	3.04
2020
January	799	3.22
February	802	3.53
March	796	2.36
April	785	0.15
May	779	-1.03
June	780	-1.42
July	780	-1.65
August	782	-1.44
September	784	-1.44
October	784	-1.49
November	786	-1.28
December	783	-1.95
2021
January	782	-2.15
February	783	-2.38
March	785	-1.44
April	789	0.59
May	791	1.52
... not applicable Source: Statistics Canada, Table 36-10-0639-01, Credit liabilities of households. Grey highlights denote recessionary periods.



Impact of COVID-19 on household disposable income

As the effects of the pandemic intensified and the various levels of government issued stay-at-home orders in late March, household labour incomes experienced a significant contraction with many workers facing widespread layoffs, reduced hours, and modified work arrangements. Even as the income support measures were rolled out by all levels of government to help those impacted by COVID-19 restrictions, the aggregate compensation of employees fell 8.5% in the second quarter of 2020.^{Note 7} A key support for labour income involved the Canada Emergency Wage Subsidy (CEWS) program for which companies could apply and receive funds to keep their staff on payroll so long as they satisfied certain criteria; without this support, compensation of employees may have fallen by a much sharper 17% in the second quarter.^{Note 8} Despite reduced compensation, the combined effects of the government’s Canadian Emergency Response Benefit (CERB) and subsequent transition to the Canada Recovery Benefit (CRB), helped propel disposable household incomes to record levels. While employee compensation rebounded as restrictions eased into the third and fourth quarters of 2020, it had yet to fully recover to pre-pandemic levels by the end of 2020; however, by the first quarter of 2021 it had regained all lost ground and surpassed the levels from the end of 2019. Government transfers to households remained 25.8% higher than the levels observed in the first quarter of 2020 as the government supports continued to bolster incomes.^{Note 9}

Data table for Chart 2



Data table for Chart 2
Table summary
This table displays the results of Data table for Chart 2 Household Disposable Income, Compensation of Employees excluding CEWS, Canada Emergency Wage Subsidy (CEWS), Current Transfers from Government excluding CERB/CRB, Canada Emergency Response Benefit and Canada Recovery Benefit, calculated using in millions $CAD CAD units of measure (appearing as column headers).

	Household Disposable Income	Compensation of Employees excluding CEWS	Canada Emergency Wage Subsidy (CEWS)	Current Transfers from Government excluding CERB/CRB	Canada Emergency Response Benefit	Canada Recovery Benefit
	in millions $CAD
2019Q3	1,276,048	1,178,132	0	231,316	0	0
2019Q4	1,291,528	1,193,364	0	233,248	0	0
2020Q1	1,309,219	1,161,668	17,436	252,592	0	0
2020Q2	1,430,896	960,932	117,404	291,052	192,876	0
2020Q3	1,437,473	1,071,548	90,844	257,220	99,344	0
2020Q4	1,405,753	1,149,232	42,812	281,352	6,272	24,292
2021Q1	1,424,236	1,183,884	33,228	288,552	0	29,120
Source: Statistics Canada, Table 36-10-0112-01, Current and capital accounts - Households, Statistics Canada, Table 36-10-0118-01, Current and capital accounts - General Governments

Household expenditures decline in early 2020

As the various levels of government ordered the closure of all non-essential businesses during the first lockdown in early 2020, households were not able to easily access goods and services through traditional brick and mortar retailers and retail sales declined 10.4% from February 2020 to March 2020. While in-store sales plunged in March, e-commerce sales jumped 22.5% on a seasonally adjusted basis, as consumers moved online. The decline in overall retail sales continued into April with overall sales down another 24.9%.^{Note 10 Note 11}

The other side of the retail equation, household consumption expenditure (seasonally adjusted) recorded a sharp decrease with the second quarter of 2020 declining 14.6% from the previous quarter, and down 14.7% from the year prior.^{Note 12} This marked both the largest monthly and year-over-year declines since this time series began in 1961. While spending rebounded slightly throughout the summer as restrictions eased, household expenditure remained suppressed for the remainder of the year. Despite an improving labour market, continued assistance from all levels of government, and generally improved business conditions, net household expenditure ended the first quarter of 2021 2.6% below pre-pandemic highs. Among the hardest hit industries were those related to travel, as well as other service-oriented industries with direct client interaction such as cinemas, bars, and restaurants. Although expenditures declined, with the majority of consumers spending more time at home, specific industries saw large increases, including outdoor furniture, used cars, and major appliances.

Data table for Chart 3



Data tabe for Chart 3
Table summary
This table displays the results of Data tabe for Chart 3. The information is grouped by Estimates (appearing as row headers), Household final consumption expenditure, calculated using percent units of measure (appearing as column headers).

Estimates	Household final consumption expenditure
	percent
1991
Q1	1.9
Q2	4.7
Q3	4.1
Q4	3.2
1992
Q1	3.8
Q2	2.2
Q3	2.8
Q4	3.5
1993
Q1	3.8
Q2	4.0
Q3	3.7
Q4	4.1
1994
Q1	4.5
Q2	3.9
Q3	3.8
Q4	4.2
1995
Q1	3.1
Q2	4.0
Q3	4.3
Q4	2.9
1996
Q1	4.4
Q2	4.1
Q3	3.7
Q4	5.7
1997
Q1	6.0
Q2	6.2
Q3	7.0
Q4	6.0
1998
Q1	4.3
Q2	4.5
Q3	4.0
Q4	3.3
1999
Q1	4.8
Q2	4.8
Q3	5.7
Q4	6.7
2000
Q1	6.5
Q2	6.4
Q3	6.7
Q4	6.0
2001
Q1	5.4
Q2	5.3
Q3	3.5
Q4	3.7
2002
Q1	4.7
Q2	5.5
Q3	6.5
Q4	7.0
2003
Q1	6.0
Q2	4.5
Q3	4.6
Q4	3.1
2004
Q1	4.1
Q2	4.7
Q3	4.4
Q4	5.4
2005
Q1	5.4
Q2	5.5
Q3	5.6
Q4	5.6
2006
Q1	5.5
Q2	5.4
Q3	5.5
Q4	5.4
2007
Q1	5.4
Q2	6.1
Q3	5.9
Q4	7.0
2008
Q1	6.3
Q2	5.2
Q3	4.9
Q4	1.0
2009
Q1	-0.8
Q2	-0.8
Q3	-0.2
Q4	3.3
2010
Q1	5.2
Q2	5.2
Q3	5.0
Q4	5.0
2011
Q1	4.5
Q2	4.8
Q3	4.3
Q4	3.9
2012
Q1	3.9
Q2	3.1
Q3	3.1
Q4	2.7
2013
Q1	3.2
Q2	4.0
Q3	4.4
Q4	4.5
2014
Q1	4.4
Q2	4.8
Q3	4.6
Q4	4.8
2015
Q1	3.7
Q2	3.0
Q3	3.3
Q4	3.2
2016
Q1	3.2
Q2	2.9
Q3	2.4
Q4	2.7
2017
Q1	4.1
Q2	5.0
Q3	5.0
Q4	5.1
2018
Q1	4.7
Q2	4.2
Q3	4.4
Q4	3.3
2019
Q1	3.1
Q2	3.2
Q3	2.9
Q4	3.6
2020
Q1	0.8
Q2	-14.7
Q3	-3.4
Q4	-3.6
2021
Q1	-0.8
Source: Statistics Canada, Table 36-10-0124-01, Detailed household final consumption expenditure.

Data table for Chart 4



Data table for Chart 4
Table summary
This table displays the results of Data table for Chart 4. The information is grouped by Industry (appearing as row headers), Percent Change (appearing as column headers).

Industry	Percent Change
Major tools and equipment	55.0
Major household appliances	46.7
Food	14.3
New trucks, vans and SUVs	12.8
Stock and bond commissions	11.4
Gas	6.2
Used motor vehicles	4.7
Electricity	2.5
New passenger cars	-9.3
Fuels and lubricants	-19.4
Clothing and footwear	-20.6
Garments	-22.3
Child care outside the home	-36.3
Alcoholic beverage services	-54.2
Urban transit	-64.2
Air transport	-91.0
Cinemas	-96.9
Source: Statistics Canada, Table 36-10-0124-01, Detailed household final consumption expenditure.

Strong households’ savings and reduced reliance on non-mortgage financing

With disposable incomes surging and softening household expenditures, overall household sector savings–the proportion of disposable income available to increase net worth–experienced significant growth through 2020, reaching the highest rate since this series’ inception in 1961.^{Note 13} Both disposable incomes and the savings rate remained elevated for the remainder of 2020 and into 2021, as continued support from all levels of government, directly through transfers and indirectly through business subsidies, continued to buttress household incomes. Over the course of the year and into the first quarter of 2021, households recorded four consecutive quarters of double-digit savings rates and nearly the same level of overall annual savings in 2020 as the previous seven years combined.

Data table for Chart 5



Data table for Chart 5
Table summary
This table displays the results of Data table for Chart 5. The information is grouped by Estimates (appearing as row headers), Household saving rate and Year-over-year growth in disposable income, calculated using percent units of measure (appearing as column headers).

Estimates	Household saving rate	Year-over-year growth in disposable income
	percent
1991
Q1	14.8	3.5
Q2	11.6	4.9
Q3	12.7	3.8
Q4	13.1	2.9
1992
Q1	12.0	0.6
Q2	13.0	4.1
Q3	14.6	5.3
Q4	12.2	2.7
1993
Q1	12.3	4.6
Q2	15.4	6.9
Q3	11.7	0.5
Q4	10.4	1.5
1994
Q1	10.3	2.4
Q2	11.0	-0.9
Q3	10.0	2.1
Q4	9.6	4.0
1995
Q1	10.0	2.6
Q2	9.8	2.5
Q3	8.7	2.6
Q4	8.9	2.1
1996
Q1	7.6	2.2
Q2	7.2	1.7
Q3	6.9	2.0
Q4	5.6	2.5
1997
Q1	4.5	2.8
Q2	4.3	2.9
Q3	4.9	5.5
Q4	3.7	5.2
1998
Q1	4.9	4.8
Q2	3.6	4.8
Q3	4.6	4.4
Q4	5.5	5.2
1999
Q1	4.5	5.1
Q2	5.0	6.4
Q3	4.6	5.2
Q4	4.2	4.7
2000
Q1	4.6	5.5
Q2	4.6	5.5
Q3	4.7	6.5
Q4	5.8	7.0
2001
Q1	6.5	9.0
Q2	2.9	5.2
Q3	4.8	5.6
Q4	5.1	4.9
2002
Q1	5.2	3.2
Q2	2.5	5.5
Q3	2.7	4.5
Q4	2.4	4.5
2003
Q1	2.5	4.5
Q2	3.0	3.7
Q3	1.2	2.2
Q4	2.0	2.5
2004
Q1	1.8	2.3
Q2	2.9	5.3
Q3	2.6	6.2
Q4	2.7	5.5
2005
Q1	0.4	3.8
Q2	1.3	3.6
Q3	2.1	3.2
Q4	2.1	4.5
2006
Q1	3.1	8.0
Q2	1.3	5.7
Q3	2.8	7.8
Q4	3.5	7.9
2007
Q1	4.5	6.9
Q2	1.7	6.5
Q3	1.3	4.3
Q4	1.1	4.1
2008
Q1	2.5	3.9
Q2	3.0	5.9
Q3	3.1	7.4
Q4	5.0	5.5
2009
Q1	4.6	3.1
Q2	4.8	1.9
Q3	4.8	1.9
Q4	4.3	3.5
2010
Q1	5.4	6.4
Q2	3.7	4.5
Q3	3.8	4.2
Q4	4.2	4.6
2011
Q1	4.5	2.7
Q2	4.3	4.4
Q3	4.3	3.7
Q4	4.3	3.8
2012
Q1	4.7	4.1
Q2	4.9	4.2
Q3	5.4	4.6
Q4	5.2	3.4
2013
Q1	5.8	4.7
Q2	5.0	4.8
Q3	4.8	4.1
Q4	4.9	4.5
2014
Q1	4.3	3.0
Q2	3.9	3.0
Q3	3.8	4.1
Q4	3.5	3.2
2015
Q1	5.1	4.7
Q2	5.2	5.0
Q3	4.3	4.1
Q4	3.6	4.0
2016
Q1	0.7	-0.9
Q2	2.2	0.1
Q3	2.4	0.4
Q4	2.5	1.4
2017
Q1	1.1	4.5
Q2	1.5	4.5
Q3	2.8	5.5
Q4	2.6	5.4
2018
Q1	1.4	4.9
Q2	0.5	3.4
Q3	0.1	1.7
Q4	1.2	2.3
2019
Q1	0.6	2.6
Q2	1.4	4.0
Q3	1.6	4.5
Q4	2.0	4.2
2020
Q1	5.1	5.5
Q2	27.4	17.4
Q3	13.5	10.3
Q4	11.9	8.1
2021
Q1	13.1	9.1
Source: Statistics Canada, Table 36-10-0112-01, Current and capital accounts - Households

Excess household savings can be used to invest in housing and other structures, which adds to non-financial wealth, or households may purchase financial assets or reduce financial liabilities, which increases their net financial worth. However, households may still purchase consumer goods or invest in housing without sufficient savings by simply obtaining financing in the form of mortgage and non-mortgage loans.

Data table for Chart 6



Data table for Chart 6
Table summary
This table displays the results of Data table for Chart 6 Total currency and deposits, Mutual fund shares (units), Mortgages and Non-mortgage loans, calculated using billions $CAD units of measure (appearing as column headers).

	Total currency and deposits	Mutual fund shares (units)	Mortgages	Non-mortgage loans
	billions $CAD
2019	104	48	66	27
2020	206	91	108	-12
Source: Statistics Canada, Table 36-10-0578-01, Financial Flow Accounts

In 2020, investment in new fixed capital assets, primarily newly constructed residential structures, increased 10.8% as an ebullient housing market pushed home prices upward. Households also added significantly to their net financial worth as their transactions in financial assets exceeded those in liabilities (i.e., borrowing) for the first time in decades. While households added over $205.6 billion to their currency and deposits^{Note 14} during 2020, nearly double the increase of the previous year, they also increased their investment in mutual funds. Robust savings also meant less reliance by households on credit as they recorded a net reduction in non-mortgage loan balances in 2020, which remained into the first quarter of 2021.^{Note 15}

Data table for Chart 7



Data table for Chart 7
Table summary
This table displays the results of Data table for Chart 7 Cumulative credit card growth and Cumulative growth in personal deposits, calculated using index Jan 2018=1 units of measure (appearing as column headers).

	Cumulative credit card growth	Cumulative growth in personal deposits
	index Jan 2018=1
2018
January	1.000	1.000000
February	0.997	0.989550862
March	1.001	0.98756937
April	1.009	1.002907586
May	1.022	1.003298992
June	1.025	1.006674868
July	1.029	1.010655325
August	1.028	1.007807149
September	1.034	1.014010232
October	1.037	1.005808183
November	1.034	1.009547507
December	1.026	1.030767295
2019
January	1.011	1.025434391
February	1.024	1.017421055
March	1.029	1.016379636
April	1.056	1.033059815
May	1.069	1.036767687
June	1.067	1.044078589
July	1.071	1.043872402
August	1.067	1.050701036
September	1.073	1.058913569
October	1.074	1.060884577
November	1.062	1.071616786
December	1.062	1.09185107
2020
January	1.090	1.087625984
February	1.113	1.085875142
March	1.050	1.103754001
April	0.974	1.187853838
May	0.968	1.241207347
June	0.972	1.266753568
July	0.969	1.282514643
August	0.973	1.306984498
September	0.963	1.324824916
October	0.957	1.422061311
November	0.971	1.429781092
December	0.936	1.479318395
2021
January	0.909	1.492542321
February	0.921	1.499566658
March	0.931	1.505769742
April	0.936	1.55701595
May	0.938	1.580937137
Source: Statistics Canada, Table 36-10-0639-01, Credit liabilities of households, Bank of Canada, Chartered bank selected liabilties: month-end (formerly C2).

New non-mortgage borrowing drops then hits record as servicing costs decline

With interest rates remaining at record lows throughout 2020, interest expenses on existing non-mortgage debt fell along with obligated payments of principal. Those borrowers with variable rate products or those able to refinance or consolidate their debt at lower rates were able to reduce their interest costs and potentially direct a larger share of their overall debt servicing to reducing their outstanding principal. Additionally, reduced consumption owing to pandemic related restrictions and other reasons for delaying purchases resulted in a reduced pace of new borrowing. While more recent provincial responses to COVID-19 have been mixed, generally easing restrictions into 2021 brought strong new non-mortgage borrowing, with April borrowing setting a record looking back as far as 2010 when this data began collection. With March and April of 2020 marking the lows of the pandemic for borrowing activity, March and April of 2021 showed exceptionally strong growth in new borrowing on a year-over-year basis.

Data table for Chart 8



Data table for Chart 8
Table summary
This table displays the results of Data table for Chart 8 Total individual new lending (left axis), Month over month growth in individual new lending (right axis) and Year over year growth in individual new lending (right axis), calculated using billions $CAD and percent units of measure (appearing as column headers).

	Total individual new lending (left axis)	Month over month growth in individual new lending (right axis)	Year over year growth in individual new lending (right axis)
	billions $CAD	percent
2018
January	20	-4	7.4
February	19	-1	4.2
March	19	0	2.2
April	19	-2	-1.2
May	19	0	-3.3
June	19	1	-5.2
July	19	-1	-4.8
August	19	-1	-2.4
September	19	-1	-0.9
October	19	0	-2.0
November	18	-1	-4.6
December	18	-1	-9.3
2019
January	18	-2	-8.1
February	18	1	-6.2
March	18	-1	-6.9
April	18	2	-3.1
May	18	0	-3.1
June	18	0	-3.7
July	19	1	-2.0
August	19	3	1.7
September	19	-2	0.9
October	19	1	1.6
November	19	1	2.9
December	19	1	4.8
2020
January	19	1	7.6
February	20	1	7.2
March	21	8	16.9
April	14	-34	-24.7
May	14	1	-23.6
June	15	9	-17.4
July	17	12	-8.3
August	18	9	-3.3
September	20	9	7.7
October	21	4	11.2
November	21	1	12.0
December	22	2	12.7
2021
January	22	3	14.9
February	22	-1	13.1
March	23	5	10.6
April	23	-3	63.1
May	22	-3	57.0
Source: Bank of Canada, Report on new and existing lending (A4).

Payment deferrals also had an impact on debt servicing in 2020, although to a lesser extent for non-mortgage borrowing than mortgage. Overall, the bulk of deferrals occurred in the second quarter and resulted in lower payments of obligated principal than without the deferrals. By the fourth quarter, these deferrals had largely ended with most debtors resuming their payment schedules.

Data table for Chart 9



Data table for Chart 9
Table summary
This table displays the results of Data table for Chart 9 Obligated non-mortgage principal payments (left axis), Deferred non-mortgage principal payments (left axis), Non-mortgage interest paid (left axis) and Non-mortgage debt service ratio (right axis), calculated using in millions $CAD units of measure (appearing as column headers).

	Obligated non-mortgage principal payments (left axis)	Deferred non-mortgage principal payments (left axis)	Non-mortgage interest paid (left axis)	Non-mortgage debt service ratio (right axis)
	in millions $CAD
2019Q1	15,514	0	12,078	8.19
2019Q2	15,962	0	12,152	8.20
2019Q3	16,113	0	12,304	8.21
1209Q4	16,373	0	12,244	8.18
2020Q1	15,946	219	12,126	7.92
2020Q2	14,366	1,272	10,980	6.90
2020Q3	15,125	614	10,565	6.68
2020Q4	15,658	0	10,529	6.94
2021Q1	15,898	0	10,384	6.92
Source: Statistics Canada, Table 11-10-0065-01, Debt service indicators of households

Chartered banks supply majority of non-mortgage loans, unchanged by pandemic

As household non-mortgage debt steadily grew over the last 30 years, continued industry consolidation increased the market share of major banks relative to other lending sectors, leading to a growing share of financing originating from chartered banks. As home valuations steadily rose, the rise in popularity of Home Equity Lines Of Credit (HELOCs) through the mid-2000s further exacerbated the divide, as banks were able to tap into a much larger share of Canadian household mortgages against which borrowers could unlock additional funds. Perhaps emboldened by the strength of the Canadian housing market over the last decade and steadily declining interest rates, HELOCs grew to become the product of choice for household non-mortgage borrowing. Despite changes in borrowing preferences that have resulted from the pandemic, the market share between banks and non-banks continues to remain relatively unchanged since 2011, with chartered banks holding 74% of non-mortgage debt.

Data table for Chart 10



Data table for Chart 10
Table summary
This table displays the results of Data table for Chart 10 Chartered banks, Government, Credit unions and caisse populaires and Other non-bank lenders, calculated using billions $CAD units of measure (appearing as column headers).

	Chartered banks	Government	Credit unions and caisse populaires	Other non-bank lenders
	billions $CAD
1990
January	78	0	16	27
February	78	0	16	27
March	79	0	16	27
April	79	0	16	28
May	79	0	16	28
June	79	0	16	28
July	80	0	16	28
August	81	0	16	28
September	81	0	16	27
October	82	0	16	27
November	82	0	16	27
December	82	0	16	28
1991
January	82	0	17	28
February	82	0	17	28
March	81	0	17	28
April	82	0	17	28
May	83	0	17	28
June	83	0	17	28
July	83	0	17	28
August	83	0	17	28
September	82	0	17	29
October	82	0	18	29
November	82	0	18	29
December	82	0	18	29
1992
January	82	0	18	29
February	82	0	18	29
March	81	0	18	29
April	81	0	18	29
May	81	0	18	29
June	81	0	18	29
July	82	0	18	29
August	82	0	18	29
September	82	0	18	29
October	82	0	18	29
November	81	0	18	29
December	82	0	18	29
1993
January	82	0	19	28
February	83	0	18	28
March	83	0	19	29
April	83	0	19	29
May	83	0	19	29
June	84	0	19	29
July	84	0	19	29
August	85	0	19	29
September	86	0	19	28
October	86	0	19	28
November	87	0	19	28
December	87	0	19	28
1994
January	87	0	19	28
February	88	0	19	28
March	88	0	19	29
April	88	0	20	29
May	88	0	20	29
June	88	0	20	29
July	89	0	20	29
August	90	0	19	29
September	90	0	20	29
October	91	0	20	29
November	92	0	20	29
December	93	0	20	30
1995
January	93	0	20	30
February	94	0	20	30
March	94	0	20	30
April	94	0	20	30
May	95	0	21	30
June	95	0	21	30
July	96	0	21	30
August	96	0	21	31
September	97	0	21	31
October	98	0	21	31
November	99	0	21	31
December	99	0	21	31
1996
January	99	0	21	32
February	100	0	22	33
March	100	0	22	33
April	101	0	22	34
May	101	0	22	34
June	102	0	22	35
July	102	0	22	35
August	102	0	23	36
September	102	0	23	36
October	103	0	23	37
November	103	0	23	37
December	103	0	23	37
1997
January	104	0	23	38
February	105	0	23	39
March	107	0	23	40
April	108	0	23	40
May	108	0	23	41
June	108	0	23	41
July	109	0	23	42
August	110	0	23	44
September	112	0	23	44
October	110	0	23	47
November	111	0	23	48
December	112	0	24	49
1998
January	113	0	24	49
February	114	0	24	50
March	115	0	24	51
April	115	0	24	54
May	114	0	24	56
June	114	0	24	57
July	115	0	24	58
August	114	0	24	60
September	114	0	24	61
October	114	0	24	62
November	114	0	24	63
December	115	0	24	64
1999
January	115	0	24	64
February	116	0	25	65
March	116	0	25	67
April	117	0	25	67
May	118	0	25	67
June	119	0	25	68
July	119	0	25	69
August	119	0	25	69
September	119	0	25	71
October	119	0	25	73
November	121	0	25	74
December	122	0	25	75
2000
January	123	0	25	70
February	138	0	26	70
March	134	0	26	70
April	134	0	26	71
May	135	0	26	71
June	136	0	26	71
July	137	0	27	72
August	139	0	27	73
September	141	0	26	73
October	143	1	27	72
November	144	1	27	73
December	144	1	27	73
2001
January	145	2	27	74
February	145	2	28	74
March	144	2	28	74
April	144	2	28	75
May	144	2	28	76
June	145	2	28	77
July	145	2	29	77
August	146	3	29	77
September	147	3	30	77
October	147	3	30	77
November	148	3	30	78
December	148	3	31	78
2002
January	150	3	31	78
February	152	3	31	78
March	153	3	31	78
April	154	3	32	78
May	155	3	32	79
June	156	3	32	79
July	156	3	32	80
August	158	4	33	80
September	160	4	33	81
October	161	4	33	81
November	162	4	33	81
December	163	4	34	81
2003
January	165	4	34	80
February	167	4	34	79
March	169	4	34	78
April	171	5	35	79
May	172	5	35	79
June	173	5	35	80
July	176	5	35	81
August	175	6	35	82
September	176	6	36	83
October	178	6	36	83
November	179	6	36	84
December	182	6	36	84
2004
January	183	7	36	85
February	184	7	36	85
March	186	7	37	86
April	189	7	37	86
May	191	7	37	87
June	194	8	37	87
July	197	8	38	87
August	199	8	38	87
September	200	8	38	87
October	203	8	38	88
November	207	8	38	88
December	210	8	39	88
2005
January	212	9	39	91
February	214	9	39	94
March	216	9	39	97
April	217	9	39	98
May	217	9	39	100
June	219	9	39	101
July	220	9	39	102
August	222	10	40	102
September	224	10	40	103
October	225	10	40	104
November	227	10	40	105
December	228	10	40	106
2006
January	230	11	40	107
February	231	11	41	108
March	234	11	41	109
April	236	11	41	110
May	239	11	41	110
June	241	11	41	110
July	243	12	42	112
August	245	12	42	113
September	248	12	42	115
October	247	12	43	117
November	248	12	43	120
December	250	12	43	122
2007
January	252	12	43	123
February	254	12	43	124
March	257	12	43	126
April	259	13	44	127
May	262	13	44	128
June	265	13	45	129
July	268	13	45	130
August	270	13	45	131
September	272	13	45	131
October	276	13	46	130
November	280	13	46	130
December	283	13	46	129
2008
January	286	13	46	129
February	288	13	46	130
March	292	14	46	130
April	295	14	47	130
May	298	14	47	130
June	301	14	47	130
July	305	14	47	130
August	308	14	48	129
September	311	15	48	128
October	315	15	48	127
November	315	15	49	126
December	320	15	49	125
2009
January	324	15	49	123
February	329	15	50	122
March	333	15	50	120
April	337	15	50	119
May	342	15	50	118
June	348	15	51	116
July	351	15	51	115
August	355	15	51	114
September	359	16	52	113
October	365	16	52	112
November	369	16	52	111
December	373	16	52	110
2010
January	376	16	52	108
February	379	16	52	107
March	381	16	53	106
April	383	16	52	105
May	385	16	52	104
June	385	16	52	103
July	387	16	52	102
August	390	17	53	102
September	392	17	53	101
October	395	17	53	100
November	398	17	53	100
December	399	17	53	100
2011
January	409	17	54	98
February	410	17	54	96
March	411	17	54	94
April	414	18	54	94
May	414	18	54	94
June	416	18	54	94
July	418	18	54	93
August	419	18	55	93
September	420	18	54	93
October	420	18	55	91
November	444	18	56	72
December	445	18	56	72
2012
January	445	18	56	72
February	445	18	57	72
March	446	18	57	71
April	446	19	57	72
May	448	19	57	72
June	449	19	57	72
July	450	19	58	71
August	454	19	58	71
September	455	19	58	71
October	456	20	58	71
November	456	20	58	71
December	457	20	58	71
2013
January	457	20	59	70
February	463	21	59	70
March	464	21	59	69
April	464	21	59	70
May	465	21	59	70
June	466	21	59	70
July	467	22	60	71
August	467	22	60	72
September	468	22	60	72
October	468	22	60	73
November	468	23	60	73
December	470	23	61	74
2014
January	471	23	61	74
February	472	23	61	75
March	472	23	61	75
April	472	23	62	76
May	473	23	62	76
June	475	24	63	76
July	476	24	63	77
August	477	24	63	77
September	479	24	63	78
October	480	24	63	79
November	480	24	64	80
December	481	24	64	80
2015
January	482	25	64	81
February	484	25	64	81
March	486	25	64	81
April	488	25	64	81
May	490	25	64	82
June	492	26	65	82
July	493	26	65	83
August	494	26	65	83
September	496	26	65	84
October	496	26	65	84
November	498	26	65	84
December	498	26	65	85
2016
January	499	26	65	86
February	500	26	65	87
March	502	26	65	89
April	504	26	66	90
May	505	26	66	91
June	506	26	66	92
July	508	26	66	92
August	506	26	67	93
September	507	26	67	93
October	509	27	67	94
November	510	27	67	94
December	513	27	68	95
2017
January	515	27	68	97
February	516	27	68	99
March	519	27	68	101
April	521	27	69	101
May	523	28	69	102
June	526	28	69	102
July	529	28	70	103
August	529	28	70	103
September	530	28	70	104
October	531	28	71	103
November	533	28	71	103
December	535	28	71	103
2018
January	536	28	72	104
February	538	29	72	104
March	540	29	73	105
April	543	29	74	105
May	547	29	74	106
June	549	29	75	106
July	552	30	76	107
August	554	30	76	107
September	557	30	76	107
October	558	30	76	107
November	560	30	77	108
December	560	30	77	108
2019
January	560	30	77	107
February	562	30	76	107
March	565	31	76	106
April	569	31	77	107
May	571	31	78	108
June	574	31	78	108
July	575	31	78	108
August	577	31	78	108
September	578	31	79	108
October	578	31	79	108
November	578	32	79	108
December	579	32	79	109
2020
January	583	32	79	106
February	587	32	79	104
March	582	32	80	102
April	572	32	78	102
May	567	33	77	102
June	568	33	77	102
July	569	33	77	102
August	571	33	77	101
September	573	33	77	101
October	574	33	77	100
November	576	33	77	100
December	573	33	77	99
2020
January	573	34	76	98
February	576	34	77	97
March	578	34	77	96
April	582	34	77	96
May	584	34	78	95
Note: IFRS update in 2011 resulted in changes in the accounting of select products Source: Statistics Canada, Table 36-10-0639-01, Credit liabilities of households.

Data table for Chart 11



Data table for Chart 11
Table summary
This table displays the results of Data table for Chart 11 Non-Mortgage Loans, Chartered banks, Government, Credit unions and caisse populaires and Other non-bank lenders, calculated using millions $CAD units of measure (appearing as column headers).

	Non-Mortgage Loans	Chartered banks	Government	Credit unions and caisse populaires	Other non-bank lenders
	milions $CAD
2019
January	-565	-84	139	-152	-468
February	980	1,836	100	-327	-629
March	2,814	3,019	206	0	-411
April	5,561	3,757	176	802	826
May	3,449	2,394	90	409	556
June	3,857	2,666	113	487	591
July	2,083	1,826	152	241	-136
August	905	1,095	109	8	-307
September	1,307	1,208	150	169	-220
October	1,197	627	109	59	402
November	303	-137	163	16	261
December	1,627	1,042	172	90	323
2020
January	870	3,243	79	-113	-2,339
February	3,357	4,790	25	483	-1,941
March	-6,118	-4,852	26	499	-1,791
April	-11,634	-10,414	371	-1,453	-138
May	-5,846	-5,281	334	-632	-267
June	685	1,090	339	-268	-476
July	244	676	29	-409	-52
August	2,590	2,565	29	396	-400
September	1,247	1,423	56	183	-415
October	785	1,335	98	-404	-244
November	2,012	2,587	102	-280	-397
December	-3,735	-3,217	130	-26	-622
2021
January	-803	236	157	-220	-976
February	1,463	2,414	123	144	-1,218
March	1,500	2,186	155	238	-1,079
April	4,515	4,349	223	232	-289
May	-562	288	146	-128	-870
Source: Statistics Canada, Table 36-10-0639-01, Credit liabilities of households.

Households’ reliance on non-mortgage loans varies by product

On an aggregate basis, non-mortgage household debt reached a peak of $802 billion in February of 2020, and declined to a low of $779 billion in May of 2020, where it has remained relatively unchanged since, ending March 2021 with a balance of $785 billion. The majority of this debt is with chartered banks, which held 74.0% of all household non-mortgage debt as of March 2021. Within this, more expensive debt such as credit cards and unsecured lines of credit have declined significantly through the pandemic, while other categories such as secured lines of credit and personal loans have continued to grow.

Data table for Chart 12



Data table for Chart 12
Table summary
This table displays the results of Data table for Chart 12 Credit liabilities of households, Personal loans, Credit cards, Lines of credit, total and Other, calculated using billions $CAD units of measure (appearing as column headers).

	Credit liabilities of households
	Personal loans	Credit cards	Lines of credit, total	Other
	billions $CAD
1990
January	32	9	6	31
February	32	9	6	32
March	32	9	6	32
April	32	9	6	32
May	32	9	6	32
June	32	9	6	32
July	32	9	6	32
August	33	10	6	32
September	33	10	7	32
October	33	10	7	33
November	33	10	7	33
December	33	10	7	33
1991
January	32	10	7	33
February	32	10	7	33
March	32	10	7	32
April	32	10	7	33
May	32	10	7	33
June	32	10	8	34
July	31	10	8	33
August	31	10	8	33
September	31	10	8	33
October	31	10	8	33
November	31	10	8	33
December	31	10	8	33
1992
January	30	10	8	33
February	30	10	8	33
March	30	10	8	33
April	30	10	9	33
May	30	10	9	33
June	29	10	9	33
July	29	10	9	33
August	29	10	9	33
September	29	10	9	33
October	29	10	9	33
November	29	11	9	33
December	29	11	9	33
1993
January	29	11	9	33
February	29	11	9	33
March	29	11	9	33
April	29	11	10	33
May	29	11	10	33
June	29	11	10	33
July	29	12	10	33
August	29	12	10	34
September	29	12	11	34
October	29	12	11	33
November	29	13	11	34
December	30	13	11	34
1994
January	29	13	11	34
February	29	13	11	34
March	30	13	11	34
April	30	13	11	34
May	30	14	11	34
June	30	14	11	33
July	30	14	12	34
August	30	14	12	34
September	30	14	12	34
October	30	14	12	34
November	31	15	12	35
December	31	15	13	35
1995
January	31	15	13	35
February	31	15	13	35
March	31	15	13	35
April	31	15	13	35
May	31	15	13	36
June	31	16	13	36
July	31	16	13	36
August	31	16	13	36
September	31	16	13	37
October	32	16	13	37
November	32	16	13	37
December	32	16	13	37
1996
January	32	16	13	37
February	32	16	14	37
March	33	16	14	37
April	33	16	14	38
May	33	16	14	38
June	33	16	14	38
July	33	16	14	38
August	33	17	14	38
September	33	17	15	38
October	33	17	15	38
November	33	17	15	38
December	33	17	16	38
1997
January	33	17	16	38
February	33	17	16	39
March	34	17	17	39
April	34	17	17	39
May	34	17	17	40
June	34	17	18	39
July	34	17	18	39
August	35	17	19	39
September	35	16	20	40
October	33	16	21	40
November	33	15	21	41
December	34	15	22	41
1998
January	34	15	22	42
February	34	15	22	42
March	34	15	23	42
April	35	14	23	42
May	35	12	24	43
June	35	12	24	43
July	35	12	24	43
August	35	11	25	43
September	35	11	25	43
October	36	11	25	43
November	36	11	25	42
December	36	11	25	42
1999
January	36	11	26	42
February	36	11	26	43
March	37	11	26	43
April	37	11	27	43
May	37	11	27	43
June	37	11	27	43
July	37	11	27	43
August	37	12	28	43
September	37	12	28	43
October	37	12	28	43
November	37	12	28	43
December	37	13	29	43
2000
January	37	13	30	43
February	40	15	38	45
March	40	16	35	44
April	40	16	34	43
May	40	17	34	44
June	40	17	35	44
July	40	18	36	44
August	41	18	37	44
September	41	19	37	44
October	41	19	39	44
November	41	20	39	44
December	41	19	40	44
2001
January	41	19	41	43
February	40	20	41	44
March	40	20	42	42
April	40	20	43	42
May	40	21	42	42
June	40	21	43	41
July	40	21	43	42
August	40	22	44	41
September	40	22	44	41
October	40	23	45	40
November	40	23	45	40
December	39	23	46	39
2002
January	40	23	48	40
February	40	24	49	39
March	40	24	50	39
April	40	25	51	39
May	39	25	52	39
June	39	25	53	38
July	39	26	53	38
August	39	26	55	38
September	38	27	56	38
October	39	28	57	38
November	39	28	58	37
December	39	29	59	37
2003
January	39	29	60	37
February	39	31	61	37
March	39	32	62	36
April	39	32	64	36
May	39	32	65	36
June	39	32	66	36
July	39	33	67	37
August	39	32	68	36
September	39	32	69	36
October	39	32	71	36
November	39	32	72	36
December	39	33	74	36
2004
January	39	33	75	35
February	39	33	77	35
March	39	33	79	35
April	39	34	81	35
May	40	34	83	35
June	40	35	85	34
July	40	35	87	34
August	40	36	89	34
September	40	36	90	34
October	41	36	92	34
November	43	36	94	34
December	43	36	96	34
2005
January	42	37	97	35
February	43	37	99	36
March	43	37	100	36
April	43	36	101	36
May	43	36	103	36
June	43	36	105	36
July	41	36	107	36
August	41	36	108	36
September	41	36	110	37
October	41	36	112	37
November	41	36	113	37
December	41	36	114	37
2006
January	41	36	116	37
February	41	35	117	37
March	41	36	119	38
April	41	36	120	38
May	41	37	122	39
June	41	38	123	40
July	41	38	125	40
August	41	39	126	40
September	41	39	127	40
October	41	39	126	40
November	41	39	128	40
December	41	39	129	41
2007
January	41	40	130	41
February	42	39	131	42
March	42	40	133	42
April	42	41	134	42
May	42	42	136	42
June	42	43	138	42
July	43	43	139	42
August	43	43	141	43
September	43	44	143	43
October	43	45	144	43
November	44	47	146	44
December	44	47	148	43
2008
January	44	48	150	44
February	45	48	152	43
March	45	49	155	44
April	45	49	158	43
May	45	49	160	44
June	46	49	162	44
July	46	50	165	45
August	47	50	167	44
September	47	51	170	44
October	47	51	172	44
November	50	51	175	40
December	51	52	178	40
2009
January	51	52	182	39
February	52	53	186	39
March	52	53	189	39
April	53	53	192	39
May	53	54	196	39
June	54	54	200	39
July	54	54	203	39
August	55	54	207	39
September	55	55	210	39
October	56	55	212	42
November	55	55	215	44
December	56	56	217	44
2010
January	56	56	219	44
February	57	56	221	44
March	57	56	223	44
April	58	57	224	44
May	58	57	225	45
June	58	56	226	45
July	59	56	228	45
August	59	56	229	45
September	60	57	231	45
October	60	58	232	45
November	61	59	234	45
December	62	59	234	45
2011
January	62	66	235	45
February	63	66	236	45
March	63	66	237	45
April	65	66	239	45
May	65	64	240	45
June	66	64	242	45
July	66	64	243	45
August	67	63	244	45
September	67	63	245	45
October	68	63	246	44
November	68	78	252	45
December	69	78	253	45
2012
January	70	78	254	44
February	70	77	254	44
March	71	77	254	44
April	71	77	255	44
May	71	77	256	44
June	71	78	257	44
July	72	77	258	44
August	74	77	259	43
September	74	77	260	43
October	75	77	260	43
November	76	74	263	43
December	76	75	263	43
2013
January	76	74	263	43
February	83	74	263	43
March	84	74	263	43
April	84	75	263	43
May	87	72	263	42
June	88	72	263	42
July	89	73	263	42
August	89	73	263	42
September	90	73	263	42
October	91	73	262	42
November	92	73	262	42
December	93	74	262	42
2014
January	94	73	262	42
February	94	74	262	42
March	94	74	263	42
April	94	74	263	42
May	95	74	263	41
June	95	75	263	41
July	95	75	264	41
August	95	75	264	42
September	96	75	265	43
October	97	75	265	43
November	93	75	269	43
December	93	75	269	43
2015
January	93	76	270	43
February	94	76	270	44
March	94	76	271	44
April	94	76	272	46
May	94	77	272	47
June	95	77	272	49
July	94	77	273	49
August	96	77	273	48
September	97	77	273	48
October	97	78	273	48
November	97	78	274	48
December	98	78	274	49
2016
January	98	78	274	49
February	98	78	275	49
March	98	78	275	50
April	99	80	277	50
May	99	79	278	49
June	99	80	279	49
July	99	80	280	50
August	99	79	279	49
September	98	80	279	50
October	99	80	280	50
November	99	80	281	50
December	99	80	283	51
2017
January	99	81	284	51
February	100	81	285	51
March	100	81	286	51
April	101	82	288	51
May	101	82	290	50
June	101	82	292	50
July	102	83	294	50
August	101	82	295	50
September	101	83	295	50
October	102	83	296	50
November	102	83	297	52
December	102	82	298	53
2018
January	103	81	301	51
February	103	81	301	52
March	103	81	303	53
April	104	82	304	53
May	104	83	305	54
June	104	83	308	55
July	104	84	310	55
August	105	84	311	55
September	105	84	312	55
October	105	84	313	56
November	106	84	315	56
December	106	84	315	55
2019
January	106	82	316	56
February	105	83	317	56
March	106	84	317	57
April	107	86	318	58
May	107	87	318	58
June	108	87	320	59
July	108	87	321	59
August	109	87	321	59
September	110	87	321	59
October	110	87	321	59
November	111	86	322	60
December	111	87	322	60
2020
January	111	89	318	65
February	112	91	318	67
March	112	85	321	65
April	111	79	318	64
May	110	79	314	64
June	111	79	314	65
July	111	79	313	65
August	112	79	314	66
September	112	78	315	67
October	112	78	316	68
November	113	79	316	68
December	113	76	316	68
2021
January	115	74	316	69
February	115	75	317	69
March	115	76	317	70
April	116	76	319	71
May	116	76	319	71
Note: Other includes "other personal loans" and "loans to unincorporated businesses." IFRS update in 2011 resulted in changes in the accounting of select products. Source: Statistics Canada, Table 36-10-0639-01, Credit liabilities of households.

Data table for Chart 13



Data table for Chart 13
Table summary
This table displays the results of Data table for Chart 13 Personal loans, Credit cards, Lines of credit excluding home equity lines of credit, HELOCs and Other personal loans , calculated using billions $CAD units of measure (appearing as column headers).

	Personal loans	Credit cards	Lines of credit excluding home equity lines of credit	HELOCs	Other personal loans
	billions $CAD
2020
January	0	0	0	0	0
February	1	2	0	1	0
March	1	-3	0	3	-1
April	0	-9	-2	2	-1
May	-1	-10	-4	1	-1
June	0	-10	-4	0	-1
July	1	-10	-5	0	0
August	1	-10	-5	1	0
September	1	-10	-5	2	1
October	2	-11	-5	3	2
November	2	-10	-6	4	2
December	2	-13	-6	5	3
2021
January	4	-15	-6	4	4
February	4	-14	-7	6	4
March	5	-13	-7	6	5
April	6	-13	-7	8	6
May	6	-12	-8	9	6
Source: Statistics Canada, Table 36-10-0639-01, Credit liabilities of households.

As interest rates remained relatively low and home valuations have climbed over the last 20 years, the growth in HELOC balances dwarfed all other forms of non-mortgage borrowing. HELOCs as a proportion of non-mortgage debt grew from 10.5% in January 2000, to 32% by January 2021.^{Note 16} Looking solely at chartered banks, HELOCs accounted for nearly 44% of outstanding non-mortgage debt as of March 2021. Despite the aggregate balance of outstanding non-mortgage debt declining as COVID-19 lockdowns set in, HELOC balances were up 2.5% in March 2021 from January 2020, while aggregate non-mortgage balances declined 1.8% over the same period.^{Note 17} However, some banks include mortgage balances in their reported HELOC balances. Specifically, with combined plans there is both a mortgage and HELOC component, but these combined plans are sometimes classified entirely as HELOCs. This mortgage component that can be identified in HELOC balances has been a sizeable contributor to the overall growth in HELOCs as explained by the Bank of Canada in their article “Reassessing the Growth of HELOCs in Canada Using New Regulatory Data.” After removing this mortgage component to derive a direct measure of HELOC debt, it is estimated that between the first quarters of 2020 and 2021, total HELOCs actually declined by over $10 billion.

A potential risk among households is the increased potential to add an unsustainable amount debt as rising home values unlock the possibility of expanded credit lines. Rising home valuations create more equity for home owners to draw from, and a potential use of HELOCs is to perform home renovations, which saw an 11.5% increase in expenditure from January 2020 to March 2021.^{Note 18} However, increasing HELOC borrowing as a result of higher property values has not materialized given that, as discussed previously, total HELOC debt has declined substantially over 2020. Unsecured lines of credit on the other hand, which generally have higher interest rates than their secured counterparts, declined significantly through 2020, and continued to decline into 2021, with overall outstanding balances in March 2021 down 10% from January 2020.

Data table for Chart 14



Data table for Chart 14
Table summary
This table displays the results of Data table for Chart 14 Credit liabilities of households, Lines of credit, total, Lines of credit: excluding home equity lines of credit and Home equity lines of credit, calculated using billions $CAD units of measure (appearing as column headers).

	Credit liabilities of households
	Lines of credit, total	Lines of credit: excluding home equity lines of credit	Home equity lines of credit
	billions $CAD
2001
January	41	10	31
February	41	10	32
March	42	10	32
April	43	10	33
May	42	10	33
June	43	10	33
July	43	10	33
August	44	10	33
September	44	10	34
October	45	11	34
November	45	11	34
December	46	11	35
2002
January	48	12	36
February	49	12	37
March	50	12	38
April	51	12	39
May	52	13	39
June	53	13	40
July	53	13	40
August	55	13	41
September	56	14	42
October	57	14	43
November	58	14	44
December	59	14	45
2003
January	60	15	45
February	61	15	46
March	62	15	47
April	64	16	48
May	65	16	49
June	66	17	50
July	67	17	51
August	68	17	51
September	69	17	52
October	71	17	54
November	72	17	55
December	74	18	56
2004
January	75	18	57
February	77	18	59
March	79	19	60
April	81	19	62
May	83	20	63
June	85	20	64
July	87	21	66
August	89	21	67
September	90	22	69
October	92	22	70
November	94	22	72
December	96	23	73
2005
January	97	23	75
February	99	23	76
March	100	23	77
April	101	23	78
May	103	24	79
June	105	24	81
July	107	24	82
August	108	24	84
September	110	25	85
October	112	25	86
November	113	25	87
December	114	26	89
2006
January	116	26	90
February	117	27	91
March	119	27	91
April	120	28	93
May	122	28	94
June	123	28	95
July	125	28	96
August	126	29	97
September	127	29	98
October	126	29	98
November	128	29	99
December	129	29	100
2007
January	130	30	100
February	131	30	101
March	133	30	102
April	134	31	104
May	136	31	105
June	138	31	106
July	139	32	107
August	141	32	109
September	143	33	110
October	144	33	111
November	146	33	113
December	148	33	115
2008
January	150	34	116
February	152	35	118
March	155	35	119
April	158	36	122
May	160	36	124
June	162	37	126
July	165	37	127
August	167	38	129
September	170	38	132
October	172	39	134
November	175	39	136
December	178	39	138
2009
January	182	41	141
February	186	43	143
March	189	44	145
April	192	45	147
May	196	46	150
June	200	48	153
July	203	48	155
August	207	49	158
September	210	50	160
October	212	50	162
November	215	51	164
December	217	52	165
2010
January	219	52	167
February	221	53	169
March	223	53	170
April	224	53	172
May	225	53	172
June	226	52	173
July	228	53	175
August	229	54	176
September	231	54	177
October	232	55	178
November	234	55	179
December	234	55	179
2011
January	235	56	179
February	236	56	181
March	237	56	181
April	239	56	182
May	240	57	183
June	242	58	184
July	243	58	185
August	244	58	186
September	245	58	187
October	246	58	188
November	252	59	193
December	253	60	193
2012
January	254	56	198
February	254	55	199
March	254	55	199
April	255	55	200
May	256	55	201
June	257	55	202
July	258	55	202
August	259	55	203
September	260	56	204
October	260	56	205
November	263	58	205
December	263	58	205
2013
January	263	59	205
February	263	58	205
March	263	58	205
April	263	58	205
May	263	59	204
June	263	59	204
July	263	59	204
August	263	59	203
September	263	60	203
October	262	60	203
November	262	59	203
December	262	59	203
2014
January	262	59	203
February	262	59	203
March	263	60	203
April	263	60	203
May	263	60	203
June	263	60	203
July	264	61	203
August	264	61	203
September	265	61	203
October	265	61	203
November	269	65	204
December	269	66	204
2015
January	270	66	204
February	270	66	205
March	271	67	205
April	272	67	205
May	272	67	205
June	272	67	205
July	273	68	205
August	273	68	205
September	273	68	205
October	273	68	205
November	274	68	205
December	274	68	205
2016
January	274	69	205
February	275	70	205
March	275	69	206
April	277	70	207
May	278	70	207
June	279	70	208
July	280	71	209
August	279	70	209
September	279	69	210
October	280	70	211
November	281	70	212
December	283	71	212
2017
January	284	71	213
February	285	71	213
March	286	72	215
April	288	72	217
May	290	72	218
June	292	72	220
July	294	72	222
August	295	71	223
September	295	71	224
October	296	71	225
November	297	71	226
December	298	71	228
2018
January	301	72	228
February	301	72	229
March	303	72	230
April	304	73	232
May	305	72	233
June	308	73	234
July	310	74	236
August	311	73	237
September	312	74	239
October	313	73	240
November	315	74	241
December	315	74	241
2019
January	316	74	242
February	317	74	242
March	317	75	243
April	318	75	243
May	318	74	244
June	320	75	245
July	321	75	246
August	321	76	246
September	321	76	246
October	321	76	246
November	322	75	246
December	322	75	246
2020
January	318	71	247
February	318	70	248
March	321	71	250
April	318	69	249
May	314	67	248
June	314	66	247
July	313	66	247
August	314	66	248
September	315	66	249
October	316	65	250
November	316	65	251
December	316	64	251
2021
January	316	64	251
February	317	64	253
March	317	64	253
April	319	64	255
May	319	63	256
Source: Statistics Canada table 36-10-0639-01, Credit liabilities of households

Looking beyond the rise in outstanding HELOC balances, significant growth occurred in the use of credit cards over the last two decades. As households became accustomed to using their credit cards for everyday purchases and the product space evolved as competitors refined rewards systems and included additional perks, the outstanding balance carried on credit cards grew from $13.2 billion in January 2000 to a high of $90.6 billion in February 2020, an average annual growth of 20.7%. With credit cards typically being the most expensive form of debt, as non-essential spending declined and disposable incomes rose during the pandemic, outstanding credit card balances saw the largest negative annual growth since May of 1999. Outstanding credit card balances fell to a low of $74 billion in January 2021, a decline of 18.3% in less than twelve months. While other loan categories resumed some growth into the end of 2020 with businesses partially reopening, credit card balances continued to decline despite typically strong seasonal spending around the holidays.^{Note 19} With the expansion in currency and deposits among households and continued strong savings, the reliance on credit card debt may continue to be diminished for some time.

Data table for Chart 15



Data table for Chart 15
Table summary
This table displays the results of Data table for Chart 15 Change in credit card balances from November to December, calculated using millions $CAD units of measure (appearing as column headers).

	Change in credit card balances from November to December
	millions $CAD
1990	477
1991	234
1992	583
1993	834
1994	858
1995	750
1996	447
1997	838
1998	776
1999	1,004
2000	573
2001	919
2002	1,404
2003	2,108
2004	1,834
2005	1,593
2006	1,302
2007	2,075
2008	2,593
2009	1,898
2010	1,727
2011	1,354
2012	1,760
2013	2,053
2014	1,811
2015	1,821
2016	2,482
2017	1,118
2018	1,466
2019	2,324
2020	-2,386
Source: Statistics Canada, Table 36-10-0639-01, Credit liabilities of households.

Bank margins widen as interest rates fall to record lows while riskiest debtors repay their loans

As lockdowns remained in effect, banks extended temporary credit relief to their customers through the summer, and as a result the average outstanding balance weighted APRs (Annualized Percentage Rate) for credit cards declined from their February highs. However, by September these measures had been largely curtailed, and average effective rates returned to their pre-pandemic levels. With interest at historic lows, and credit card APRs on the rise, the implicit cost of using credit cards reached a record level as measured by the difference between the costs of funds and the rates being charged. While one might conclude that average credit card rates rose in response to a shift in outstanding balances from higher credit rated borrowers to lower, the reality is that those with lower scores repaid their debt at a faster rate than those with higher scores throughout the pandemic.

Data table for Chart 16



Data table for Chart 16
Table summary
This table displays the results of Data table for Chart 16 Credit card balances (left axis) and Credit card balance weighted APR rate (right axis), calculated using billions $CAD and percent units of measure (appearing as column headers).

	Credit card balances (left axis)	Credit card balance weighted APR rate (right axis)
	billions $CAD	percent
2017
January	71	18.4
February	70	18.8
March	70	18.3
April	70	18.3
May	71	18.6
June	72	18.7
July	72	18.6
August	72	18.5
September	73	18.9
October	73	18.7
November	74	18.8
December	76	18.7
2018
January	75	18.8
February	74	19.0
March	74	18.5
April	74	18.7
May	75	18.8
June	76	18.8
July	76	18.8
August	77	18.9
September	77	19.0
October	77	19.0
November	78	19.0
December	79	18.9
2019
January	78	19.2
February	77	19.4
March	77	18.9
April	78	19.0
May	79	19.1
June	79	19.1
July	79	19.1
August	80	19.1
September	80	19.3
October	80	19.2
November	81	19.3
December	82	19.2
2020
January	81	19.4
February	80	19.5
March	78	19.2
April	73	19.4
May	71	19.0
June	71	19.1
July	71	19.1
August	71	19.2
September	71	19.4
October	70	19.2
November	71	19.4
December	70	19.3
2021
January	68	19.4
February	66	19.5
March	67	19.1
April	66	19.3
May	66	19.3
Source: Bank of Canada, Report on New and Existing Lending (A4).

Data table for Chart 17



Data table for Chart 17
Table summary
This table displays the results of Data table for Chart 17 Credit Score: No Score or No Hit, Credit Score: Less than 640, Credit Score: 641 - 680, Credit Score: 681 - 720, Credit Score: 721 - 760, Credit Score: 761 - 800 and Credit Score: 801+, calculated using billions $CAD units of measure (appearing as column headers).

	Credit Score: No Score or No Hit	Credit Score: Less than 640	Credit Score: 641 - 680	Credit Score: 681 - 720	Credit Score: 721 - 760	Credit Score: 761 - 800	Credit Score: 801+
	billions $CAD
2019Q4	3	15	12	16	16	13	16
2020Q1	3	14	12	16	15	11	12
2020Q2	3	12	11	14	14	11	14
2020Q3	3	10	11	14	15	12	15
2020Q4	3	10	10	14	14	12	15
2021Q1	3	9	10	13	14	11	14
Source: Bank of Canada, Non-mortage Loans (A2).

Data table for Chart 18



Data table for Chart 18
Table summary
This table displays the results of Data table for Chart 18 Credit Score: Less than 640, Credit Score: 641 - 680, Credit Score: 681 - 720, Credit Score: 721 - 760, Credit Score: 761 - 800 and Credit Score: 801+, calculated using percent units of measure (appearing as column headers).

	Credit Score: Less than 640	Credit Score: 641 - 680	Credit Score: 681 - 720	Credit Score: 721 - 760	Credit Score: 761 - 800	Credit Score: 801+
	percent
2019Q4 to 2021Q1	-37	-19	-17	-18	-17	-13
Source: Bank of Canada, Non-mortage Loans (A2).

The margins charged on other non-mortgage lending products can be calculated as the difference between the APRs charged and cost of funds that lenders would be paying to support these loans, with the overnight being a proxy for the funding rate.^{Note 20} Since the APRs on the majority of non-mortgage loans are variable and based off the prime rate plus a risk percentage, as interest rates fell to historic lows, on a percentage basis, the margins between the costs of funds and the rates charged on variable rate loans rose to record levels.

Data table for Chart 19



Data table for Chart 19
Table summary
This table displays the results of Data table for Chart 19 Other personal non-mortgage loans to individuals, Personal lines of credit secured non-mortgage loans to individuals, Personal lines of credit unsecured non-mortgage loans to individuals, Personal loan plans non-mortgage loans to individuals and Overnight money market rate, calculated using percent units of measure (appearing as column headers).

	Other personal non-mortgage loans to individuals	Personal lines of credit secured non-mortgage loans to individuals	Personal lines of credit unsecured non-mortgage loans to individuals	Personal loan plans non-mortgage loans to individuals	Overnight money market rate
	percent
2017
January	4.3	3.1	6.2	4.3	0.5
February	4.3	3.1	6.2	4.3	0.5
March	4.2	3.1	6.3	4.3	0.5
April	4.1	3.1	6.4	4.3	0.5
May	4.2	3.1	6.4	4.3	0.5
June	4.1	3.1	6.4	4.3	0.5
July	4.4	3.3	6.6	4.3	0.7
August	4.3	3.3	6.6	4.3	0.7
September	4.4	3.5	6.9	4.3	1.0
October	4.5	3.5	6.9	4.3	1.0
November	4.3	3.5	6.9	4.3	1.0
December	4.3	3.5	6.9	4.3	1.0
2018
January	4.5	3.6	7.1	4.4	1.2
February	4.5	3.6	7.1	4.4	1.2
March	4.3	3.6	7.2	4.4	1.2
April	4.5	3.6	7.2	4.4	1.2
May	4.5	3.6	7.2	4.4	1.2
June	4.4	3.6	7.2	4.4	1.2
July	4.7	3.8	7.4	4.5	1.5
August	4.6	3.8	7.4	4.5	1.5
September	4.5	3.8	7.4	4.5	1.5
October	4.8	3.9	7.6	4.5	1.7
November	4.8	3.9	7.7	4.6	1.7
December	5.0	4.0	7.7	4.6	1.8
2019
January	4.7	3.9	7.7	4.6	1.7
February	5.3	4.0	7.7	4.7	1.7
March	5.3	4.0	7.7	4.7	1.7
April	5.4	4.0	7.8	4.7	1.7
May	5.3	4.0	7.8	4.7	1.7
June	5.3	4.0	7.8	4.8	1.7
July	5.5	4.0	7.8	4.8	1.7
August	5.3	4.0	7.7	4.8	1.7
September	5.5	3.9	7.7	4.8	1.7
October	5.4	3.9	7.7	4.8	1.7
November	5.3	3.9	7.8	4.8	1.7
December	5.4	3.9	7.8	4.8	1.7
2020
January	5.3	3.9	7.8	4.8	1.7
February	5.3	3.9	7.8	4.9	1.7
March	4.4	3.0	6.4	4.8	0.7
April	4.2	2.9	6.3	4.8	0.2
May	4.1	2.9	6.2	4.8	0.2
June	4.2	2.9	6.2	4.8	0.2
July	4.1	2.9	6.2	4.7	0.2
August	4.2	2.9	6.2	4.7	0.2
September	4.2	2.9	6.2	4.7	0.2
October	4.1	2.9	6.2	4.7	0.2
November	4.2	2.8	6.2	4.7	0.2
December	4.0	2.8	6.2	4.7	0.2
2021
January	4.0	2.8	6.2	5.8	0.2
February	4.0	2.8	6.2	5.8	0.2
March	4.1	2.8	6.1	5.8	0.2
April	4.1	2.7	6.1	5.8	0.1
Note: HELOCs are included in personal lines of credit secured non-mortgage loans to individuals. Source: Bank of Canada, Report on New and Existing Lending (A4). Statistics Canada, Table 10-10-0122-01, Financial market statistics.

Expected credit losses grow to record levels, despite declines in outstanding debt

As part of their risk management activities, financial institutions estimate the proportion of their loan portfolios that may enter default each period. These expected credit losses (ECL) are based on actuarial assumptions that attempt to anticipate the default rates on their loans and – subsequently – the amount of impaired loans that may need to be written off in a given period. While banks factored in relatively little ECL for non-mortgage loans prior to the financial crisis of 2008, new banking regulations forced banks to set aside greater amounts to protect against credit losses. With low interest rates and a strengthening economy in the following years, ECL as percentage of outstanding debt declined from the 2008 highs. This trend continued until the COVID-19 lockdowns occurred, when banks ECL rates nearly doubled from 1.1% in the fourth quarter of 2019, to 2% by the second quarter of 2020.^{Note 21} With the various levels of government being quick to offer support measures and many able to work from home, losses were not as severe as anticipated. As a result, ECL rates remained relatively unchanged for the duration of the year and into the first quarter of 2021.

Data table for Chart 20



Data table for Chart 20
Table summary
This table displays the results of Data table for Chart 20. The information is grouped by Reference Period (appearing as row headers), ECL as a proportion of Non-Mortgage Loans, calculated using percent units of measure (appearing as column headers).

Reference Period	ECL as a proportion of Non-Mortgage Loans
	percent
2000Q1	0.36
2000Q2	0.34
2000Q3	0.34
2000Q4	0.40
2001Q1	0.42
2001Q2	0.39
2001Q3	0.38
2001Q4	0.37
2002Q1	0.37
2002Q2	0.43
2002Q3	0.42
2002Q4	0.38
2003Q1	0.37
2003Q2	0.35
2003Q3	0.33
2003Q4	0.30
2004Q1	0.28
2004Q2	0.28
2004Q3	0.27
2004Q4	0.26
2005Q1	0.23
2005Q2	0.23
2005Q3	0.22
2005Q4	0.22
2006Q1	0.22
2006Q2	0.21
2006Q3	0.20
2006Q4	0.21
2007Q1	0.20
2007Q2	0.20
2007Q3	0.19
2007Q4	0.20
2008Q1	0.21
2008Q2	0.21
2008Q3	0.21
2008Q4	0.27
2009Q1	1.20
2009Q2	1.79
2009Q3	1.87
2009Q4	1.75
2010Q1	1.79
2010Q2	1.78
2010Q3	1.80
2010Q4	1.58
2011Q1	1.61
2011Q2	1.54
2011Q3	1.55
2011Q4	1.42
2012Q1	1.40
2012Q2	1.41
2012Q3	1.43
2012Q4	1.34
2013Q1	1.36
2013Q2	1.37
2013Q3	1.39
2013Q4	1.27
2014Q1	1.43
2014Q2	1.43
2014Q3	1.39
2014Q4	1.33
2015Q1	1.31
2015Q2	1.27
2015Q3	1.36
2015Q4	1.41
2016Q1	1.45
2016Q2	1.54
2016Q3	1.48
2016Q4	1.46
2017Q1	1.39
2017Q2	1.35
2017Q3	1.31
2017Q4	1.18
2018Q1	1.07
2018Q2	1.09
2018Q3	1.09
2018Q4	1.10
2019Q1	1.14
2019Q2	1.11
2019Q3	1.12
2019Q4	1.13
2020Q1	1.25
2020Q2	2.03
2020Q3	1.98
2020Q4	2.00
2021Q1	1.99
Source: Statistics Canada, Non-mortgage loans return (AS).

Conclusion

During the pandemic, household non-mortgage borrowing saw record declines, while household mortgage borrowing expanded to new highs. Due in large part to support measures from all levels of government, households saw their disposable incomes rise through the pandemic, as the cumulative effects of these support measures more than offset lost wages. As a result of increased disposable incomes and declining consumption, many households used the pandemic as an opportunity to pay down expensive debt, with the balances of unsecured lines of credit and credit cards being paid down in record amounts. Those who saw the greatest reduction in these outstanding balances were those with the lowest credit ratings, suggesting that those most vulnerable to financial hardships were able to use savings prudently during the pandemic. Despite an uptick in the economy as businesses reopened into the latter half of 2020, credit card debt continued to decline, while the total outstanding balance of non-mortgage debt ended the year below its pre-pandemic highs. With the economy looking to reopen fully, many Canadians will likely find themselves carrying lighter non-mortgage debt balances than they had going into the pandemic.

References

Bank of Canada (May 2021). Financial System Review – May 2021. Available at https://www.bankofcanada.ca/2021/05/financial-system-review-2021/

Bank of Canada (May 2021). Funds advanced and outstanding balances for new and existing lending by chartered banks. Available at https://www.bankofcanada.ca/rates/banking-and-financial-statistics/funds-advanced-and-outstanding-balances-for-new-and-existing-lending-by-chartered-banks/

Bank of Canada (May 2021). Historical selected credit measures (formerly E2). Available at https://www.bankofcanada.ca/rates/banking-and-financial-statistics/selected-credit-measures-formerly-e2/

Bank of Canada (May 2021). Reassessing the Growth of HELOCs in Canada Using New Regulatory Data – May 2021. Available at https://www.bankofcanada.ca/2019/05/staff-analytical-note-2019-14/

Statistics Canada (May 2021). “Credit liabilities of households.” Available at https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=3610063901.

Statistics Canada (May 2021). “Current and capital accounts – households, Canada, quarterly.” Available at https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=3610011201

Statistics Canada (May 2021). “Debt service indicators of households, national balance sheet accounts.” Available at https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=1110006501.

Statistics Canada (May 2021). “Household sector credit market summary table, seasonally adjusted estimates.” Available at https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=3810023801