Credit card balances, lines of credit, personal borrowing up in June
(Source: Toronto Star)
Canadians, buoyed by a budding housing market recovery, took on more debt in June as they tapped banks for a variety of loans tied to real estate, says a report released yesterday by TD Economics.
Total bank-issued credit to households grew by 1 per cent in June from May. On a year-over-year basis, household credit increased by 9.9 per cent.
Although the recession is taking a toll on consumers, relatively low interest rates helped whet their appetite for more housing-related debt. That helped drive home sales last month, but economists warn demand for mortgages will likely diminish during the rest of 2009.
Read Rita Trichur’s full article “Housing market growth boosts real estate loans” in the Toronto Star (July 28, 2009).