Canadian Housing Debt Surges in June

Canadian mortgage debt has surged in recent months, setting an all-time record for household debt growth within the first half of the year.

Statistics Canada released its Monthly Credit Aggregates report for June 2021 late last week, with new insights on the record-breaking levels of mortgage debt Canadians have accumulated so far in 2021.

Household mortgage debt grew by 1.4 percent from May to June, a month to month increase of $23.6 billion. By comparison, $16.8 billion in household mortgage loans was added in May, and $17.8 billion in April. June’s growth marks the largest monthly increase for mortgage debt on record, Statistics Canada stated in its report. On an annual basis, mortgage borrowing rose by 9.2 percent from June 2020, a pace that has not been recorded since October 2008.

During the first half of 2021, Canadian households have garnered $81.6 billion in mortgage debt, just short of the $108.6 billion in total debt that was added throughout all 12 months of 2020.

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