The Globe and Mail reports in its Wednesday edition that Equifax Canada says consumer delinquencies climbed higher in the fourth quarter of 2018 and it warns that rising delinquency rates are likely to become the norm this year.
A Canadian Press dispatch to The Globe reports that Equifax says the 90-day mortgage delinquency rate rose by 1.5 per cent from the fourth quarter of 2017 to 0.18 per cent at the end of last year.
The comparable non-mortgage rate was up 0.4 per cent to 1.07 per cent. Delinquency rates for Canadians 65 and older were up 7.2 per cent year-over-year in the fourth quarter. Equifax says total Canadian consumer debt including mortgages increased to nearly $1.91-trillion in the fourth quarter, up from $1.82-trillion in the fourth quarter of 2017.
The average non-mortgage debt for consumers was $23,520, up 3 per cent compared with a year earlier. By province, Manitoba posted the highest increase in its delinquency rate at 6 per cent.
"Bankruptcies are up 15 per cent in the last half of 2018 and the small increase in delinquency rates mask some underlying weakness," Equifax Canada vice-president Bill Johnston said in a statement.
"Rising delinquency is likely to become the norm in 2019."
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