A new report detailing a rise in unsecured credit is providing fodder for brokers concerned Ottawa has erred in focusing on mortgages.
Canadian debt loads grew at their fastest pace in two years during the summer, writes credit reporting agency TransUnion in its third quarter analysis, released Wednesday.
More specifically, the report finds that the average consumer non-mortgage debt jumped 4.6 per cent in Q3 2012, compared to the same period last year.
It did the same compared to this year’s second quarter, rising 2.1 per cent in the summer.
“It’s almost been two years and it’s the largest year-over-year increase we’ve had and I think it’s the largest quarterly increase we’ve had during that time period as well,” said TransUnion VP of Analytics Thomas Higgins.
The growth roughly coincides with Ottawa’s crackdown on mortgage growth with new tighter rules introduced in July. Stricter lending guidelines for federal institutions were also brought to the market, creating a double whammy effect responsible, say critics, for the rapid de-acceleration home sales.
Read more here (Mortgage Broker News).
