14 September 2018

Moreover, it’s one of the smallest second-quarter gains since 2000.

“Although the number rose slightly, the ratio finally went down from the record high level”, – she said.

“The main point is that borrowing slowed down with the real estate market as the Canadians needed to adjust to stricter mortgage rules and interest rate hikes”.

Households borrowed $19.6 billion in Q1 (on a seasonally adjusted basis), following $22.2 billion borrowed in the first quarter.

The decline was the result of a demand increase in consumer credit, more than offset by drops in mortgage and non-mortgage loans.

The decrease in the mortgage sector was caused by stricter mortgage rules and higher rates cooling down the real estate market.