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Household debt growth accelerates as mortgage lending jumps

Household debt growth accelerates as mortgage lending jumps - image
Darren Calabrese/The Canadian Press

OTTAWA – A report by RBC says mortgages helped boost Canadian household credit growth in October as it increased by 5.0 per cent compared with a year ago.

The increase came as mortgage borrowing rose 6.0 per cent compared with a year ago. The jump was the fastest pace since October 2012.

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RBC suggested the growth came against a backdrop of low interest rates and strong housing markets in some areas.

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Meanwhile, growth in consumer credit, which includes personal loans, lines of credit and credit cards, slowed to 2.7 per cent, the slowest pace in a year.

Rising debt levels has been identified by many, including the Bank of Canada, as a key risk to the economy.

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Here’s a look at the average consumer debt load per province (excluding mortgages), and percentage change compared to the third quarter of 2014:

— With files from Global News.

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