Household borrowing is once again on the rise as interest rates have fallen. Residential mortgage debt is the primary driver of that growth.
HOME IS WHERE THE DEBT IS
The amount of new debt taken on by Canadians is, in part, sensitive to interest rates. That is, when interest rates are low, borrowing increases--this was the case in 2020 and 2021 when borrowing grew to record highs. Conversely when rates are high, like they were in 2023, borrowing tends to fall. More recently, fixed and variable interest rates have fallen to their lowest levels since the summer of 2022, so it doesn’t come as much of a surprise that the amount of new debt taken on by Canadians rose in 2025. And even though home sales in major markets here in BC have lagged, the growth in household borrowing nationally has been concentrated in mortgages....
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