Household credit growth picked up a bit in February, rising by 0.3%, according to new data from Statistics Canada.
The national statistical agency reported total household borrowing rose by $9.3 billion in the month to $2.83 trillion, with mortgage debt rising by 0.3%, and growth in other forms of borrowing accelerating by 0.4%.
Household mortgage debt increased by $6.4 billion in February, as the growth rate rose slightly from the previous month, but remained down notably from the 0.82% growth rate recorded in February 2022.
The rise in mortgage debt came as existing home sales rebounded in February, the agency said.
Sales volumes increased by 1.5% after dropping by 3.4% in the previous month, and average sale prices also edged higher after declining in January.
Alongside the rise in mortgage debt, other forms of borrowing rose by 0.4% in February, up from 0.2% growth in each of the three previous months.
The growth in non-mortgage debt was strongest among younger, less-affluent households, StatsCan noted.
“Persistently high interest rates and inflation are likely to continue to put a financial strain on households as they continue to access credit to fund their spending, especially for more vulnerable groups,” it said.
In particular, StatsCan reported that the growth in credit card debt accelerated for the third straight month in February. Credit card debt grew by 1.45% in the month, and was up 14.5% on a year-over-year basis, it said.