Mortgage borrowing slides to lowest point since 2014

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Canadians’ mortgage borrowing over the primary three months of 2018 fell by $2 billion to $13.7 billion — the lowest stage since the second quarter of 2014 —  following the introduction of recent lending guidelines and an increase in rates of interest, Statistics Canada reported Thursday.

The federal company mentioned the slide in mortgage borrowing mirrored the 17 per cent lower within the worth of residential resale exercise within the first quarter of this yr.

The figures on mortgage borrowing are within the newest launch of Statistics Canada’s nationwide stability sheet, which particulars things like Canada’s nationwide internet value, the family sector’s complete value and debt and federal authorities borrowing.

With the cooling in mortgage borrowing, family credit score market debt for the quarter was the equal of 168 per cent of family disposable revenue. That determine is down from the 169.7 per cent seen within the fourth quarter of 2017.

In different phrases, there was $1.68 in credit score market debt for each greenback of family disposable revenue. Credit score market debt consists of shopper credit score, plus mortgage and non-mortgage loans.

Bloomberg reported that the drop within the debt-to-income ratio was the most important on data relationship again to 1990, and the ratio is now down to its lowest stage in two years. The debt-to-income ratio hit a file excessive of 170 per cent within the third quarter of final yr.

http://www.cbc.ca/news/business/household-debt-1.4705684?cmp=rss

 

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