Delinquency rates for one of Canada’s largest home buying cohorts is on the rise.
Delinquency rates among Millenials is on the rise, Equifax reported Thursday.
"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.”
Among 18-25 year-olds, delinquency rates increased 11.7% year-over-year in Q2 2016 for a total of 1.8%, according to the credit rating firm. The average debt among those individuals also increased by 2.1% and now sits at $8,203.
Those in the 26-35 year-old bracket now have a delinquency rate of 1.6% -- up 9.7%. The average debt also increased by 2.8% to $16,841.
“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 3 per cent and 6.3 per cent, respectively,” Equifax said in a release.
Equifax also reported various regions are experiencing differing credit trends.
"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."
See below for country-wide stats.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate