Household debt growth slowed a bit in January, as mortgage debt continued rising, but other forms of borrowing pulled back, according to new data from Statistics Canada.
On Thursday, the national statistical agency reported that total household debt rose by 0.3% in January, down from the 0.4% growth rate recorded in the previous month.
Mortgage debt led the way, rising by $8.9 billion in the month — and on an annualized basis, mortgage borrowing accelerated to a 4.8% growth rate, up from 4.4% in December — non-mortgage borrowing contracted by $0.7 billion in January, StatCan reported.
Credit card debt continued to grow, rising 0.3% in January, but this was down sharply from the 1.4% increase recorded in December.
While balances on home equity lines of credit (HELOCs) also rose in the month, overall non-mortgage borrowing was down by 0.1%, as other forms of borrowing declined by 0.3%.
The growth in HELOC balances represented a slowdown on an annualized basis, from 3.7% growth in December to 3.2% in January, the data showed.
StatCan also noted that the GST/HST holiday was in effect for the full month and the Bank of Canada cut rates for the sixth time in eight months, taking rates down to 3.0% (they have since been cut again).
The agency also reported that total credit liabilities for private non-financial corporations grew by 0.6% in January (up by $14.1 billion), an acceleration from the 0.4% rate recorded in December.
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