Q3 2023 Credit Industry Insights Report

Canadian Credit Market Reaches Record High Participation

 

Q3 2023 Report highlights include:
 

  • Total Canadian active credit consumers  at an all time high of 31.2 million.
  • While average credit card balance per consumer rose due to increased cost of living pressure, the number of consumers paying more than the monthly minimum dropped by 311 bps YoY.
  • While consumer-level delinquencies at 1.55% are up by 12 bps YoY, they remain below pre-pandemic levels, highlighting Canadians’ financial resilience. 

 

90+ Day Delinquency Rate YoY Changes for All Product Loans

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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.

 


Average Consumer Balance, by Product*

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*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


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