Delinquencies Up in Q4

CBJ — A report by credit monitoring company Equifax Canada says consumer delinquencies were higher in the 4th quarter and based on the trending direction, it would seem as if more are to come in 2019.

Equifax reports that the 90-day mortgage delinquency rate rose by 1.5%.

Canadian consumer debt including mortgages increased to nearly $1.91 trillion in the fourth quarter, up from $1.82 trillion in the fourth quarter of 2017.

The average non-mortgage debt for consumers was $23,520, up 3% compared with a year earlier.

“Bankruptcies are up 15% in the last half of 2018 and the small increase in delinquency rates mask some underlying weakness,” Equifax Canada vice-president Bill Johnston said in a statement. “Rising delinquency is likely to become the norm in 2019.”