Canadian Credit Market Reaches Record High Participation
Overall serious consumer-level delinquency (the proportion of consumers with a delinquency greater than 90 days past due) increased 12 bps YoY to 1.56% across all products during Q3 2023, increasing for the third consecutive quarter. However, the level of delinquency itself remains below pre-pandemic delinquency rates.
*Represents the average balance held by a consumer across each type of product (consumers can have multiple instances of same product)
Despite the rise in average credit card balances and a slight increase in consumer-level delinquencies, Canadian consumers continue to demonstrate financial resilience. The report also sheds light on ongoing shifts in consumer credit usage and performance against the backdrop of rising living and credit costs, and a shift in Canadian demographics.
“Despite slight increases in delinquency rates, the overall risk distribution across Canadians is consistent with what it was pre-pandemic, with below-prime balances still only making up approximately 18% of the country’s total debt. Although Canadian consumers remain resilient, lenders need to predict and identify vulnerable consumers who are increasingly affected by economic and fiscal pressure.”
- Matthew Fabian, Director, Research and Industry Insights