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Household debt growth accelerates as mortgage lending jumps

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.

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.