Equifax Canada says increased mortgage activity and rising house prices in the fourth quarter of 2020 pushed the overall consumer debt level to $2.07 trillion. That was up 1.5 per cent from the previous quarter and up 4.1 per cent from Q4 2019.
Despite the increase in total debt, the average consumer debt (excluding mortgages) dropped again this quarter to $23,043, which is a year-over-year decrease of 3.0 per cent and a decline of 0.8 per cent compared to the previous quarter. The drop in consumer debt is primarily due to credit card balance which has been gradually declining since March last year due to reduced spending and consumers paying down more of their balance on a monthly basis.
However, Rebecca Oakes, AVP of Advanced Analytics at Equifax Canada says, “Deferral programs are ending and pockets of financial stress are starting to emerge for some consumers. Credit card spending is also starting to rise again.”
More than three million Canadians took advantage of credit payment deferrals since the start of the pandemic and four out of five of these have now completely exited the use of deferral programs. Payment deferrals have been instrumental in preventing consumers impacted by the pandemic from becoming delinquent on their debt obligations. Early-stage delinquency, where an individual has missed one or two months of payments, continued to rise during Q4. Mortgages saw a 31 per cent increase in the 30+ day delinquency rate, while that same delinquency rate on installment loans jumped by 76 per cent when compared to Q3 2020.
Oakes says, “The numbers suggest recovery will remain very uneven.”
Debt (excluding mortgages) & Delinquency Rates
| Age | Average Debt (Q4 2020) |
Average Debt Change Year-over-Year (Q4 2020 vs. Q4 2019) |
Delinquency Rate (Q4 2020) |
Delinquency Rate Change Year-over-Year (Q4 2020 vs. Q4 2019) |
| 18-25 | $8,747 | -1.13% | 1.29% | -21.48% |
| 26-35 | $17,868 | -2.35% | 1.37% | -20.04% |
| 36-45 | $27,893 | -3.36% | 1.10% | -19.64% |
| 46-55 | $35,252 | -2.73% | 0.86% | -16.27% |
| 56-65 | $29,369 | -3.13% | 0.77% | -14.77% |
| 65+ | $15,871 | -3.76% | 0.91% | -13.90% |
| Canada | $23,043 | -3.02% | 0.98% | -17.52% |
Major City Analysis – Debt (excluding mortgages) & Delinquency Rates
| City | Average Debt (Q4 2020) |
Average Debt Change Year-over-Year (Q4 2020 vs. Q4 2019) |
Delinquency Rate (Q4 2020) |
Delinquency Rate Change Year-over-Year (Q4 2020 vs. Q4 2019) |
| Calgary | $28,829 | -3.22% | 1.19% | -13.60% |
| Edmonton | $27,319 | -3.64% | 1.43% | -10.57% |
| Halifax | $22,584 | -4.16% | 1.17% | -23.12% |
| Montreal | $17,103 | -4.76% | 0.94% | -27.25% |
| Ottawa | $21,891 | -3.82% | 0.82% | -17.23% |
| Toronto | $23,200 | -1.24% | 1.09% | -13.75% |
| Vancouver | $26,172 | -1.59% | 0.69% | -15.02% |
| St. John’s | $25,155 | -1.54% | 1.35% | -22.27% |
| Fort McMurray | $39,717 | 0.11% | 1.69% | -13.02% |
Province Analysis – Debt (excluding mortgages) & Delinquency Rates
| Province | Average Debt (Q4 2020) |
Average Debt Change Year-over-Year (Q4 2020 vs. Q4 2019) |
Delinquency Rate (Q4 2020) |
Delinquency Rate Change Year-over-Year (Q4 2020 vs. Q4 2019) |
| Ontario | $23,883 | -2.14% | 0.91% | -15.31% |
| Quebec | $18,888 | -4.76% | 0.75% | -28.82% |
| Nova Scotia | $21,969 | -2.98% | 1.37% | -23.59% |
| New Brunswick | $23,217 | -2.74% | 1.51% | -18.52% |
| PEI | $23,070 | -0.70% | 0.96% | -21.91% |
| Newfoundland | $23,836 | -0.99% | 1.40% | -23.71% |
| Eastern Region | $22,832 | -2.32% | 1.40% | -21.89% |
| Alberta | $28,099 | -3.36% | 1.36% | -10.96% |
| Manitoba | $18,030 | -4.68% | 1.21% | -17.93% |
| Saskatchewan | $23,927 | -3.48% | 1.32% | -16.54% |
| British Columbia | $24,317 | -2.15% | 0.83% | -14.66% |
| Western Region | $24,988 | -2.95% | 1.12% | -13.60% |
| Canada | $23,043 | -3.02% | 0.98% | -17.52% |
* Based on Equifax data for Q4 2020
