To the surprise of many, Canadians have balanced high debt loads and credit quality for over a decade. That era might be over. Transunion Canada data reveals an explosion of subprime borrowers in Q2 2023. Higher living costs and rising rates have combined to produce higher risk borrowers. At the same time, lenders are embracing […]
Most Canadian households are shying away from new credit, as higher interest rates lower incentive. Though there remains an exception, according to new data from TransUnion. The credit reporting giant found that new account growth for every type of credit fell in 2022, with credit cards being the exception. That trend may be problematic when […]
Fewer Canadians were taking out new mortgages, even before the rate hikes began. Mortgage origination data from TransUnion shows how originations fell sharply in Q4 2021. Not one province showed annual growth, with Ontario leading the way lower. As Canadian real estate prices climbed, fewer people were qualified to buy. This can act as friction […]
Canadian households have much bigger mortgage payments, even with cheap debt. Or maybe because of cheap debt? The average mortgage payment in Q3 2021 showed a big jump, according to TransUnion data. Instead of lowering payments, low rates have fueled record home sales and refinancing. The increased demand has driven home prices higher leading to […]
Canada has seen a surge in real estate buyers looking to get ahead of rising rates. After all, a higher cost of borrowing means higher payments, right? Running TransUnion mortgage payment data against mortgage rates shows the exact opposite. This is due to the basic design of interest rates, which are increasingly ignored due to […]
Canadian households are on an epic mortgage borrowing spree. Data from TransUnion shows explosive growth for new mortgage originations in Q2 2021. Sparked by low rates, the surge reveals that excess demand has played a significant role in exhausting supply. Canadian New Mortgages Jumped 49% Canadian mortgage originations made a sharp increase from historical levels. […]
Canadian subprime credit inquiry volumes are falling, but still lead the market. TransUnion updated some of its credit indicators for Q2 2021 today. Overall improvements are seen in credit health, with high-quality borrowers leading in growth. However, the subprime segment has been contracting at a smaller and smaller rate. Smaller contractions can mean the segment […]
Canadians aren’t defaulting, but that’s the only thing healthy about household credit. TransUnion (TU) released their Credit Industry Indicator (CII) this month. The index gauges the overall health of consumer credit using various factors. Despite a booming mortgage market, credit health is still far from pre-pandemic levels. It only made minor improvements since the biggest […]
Canadians are more sparingly applying for credit… except when it comes to a new mortgage. TransUnion data shows credit originations generally fell in Q4 2020. Every segment saw an annual decline with the exception of mortgages. New mortgage originations jumped over 25%, as more people dive into the housing mania. Canadian Mortgage Originations Rise Over […]
Canada’s Millennials are racking up quite the tab, according to a major credit agency. Transunion Canada released their latest insights on demographic credit trends. Millennials now hold more debt than the Baby Boomer generation, for the first time ever. In fact, they borrowed almost three out of four dollars in debt added to the pile […]
