Canadian Treasurer

November 18, 2015

TransUnion: Canadian consumers continue stable performance on credit products

Toronto, ON-- Canadian delinquency rates (the ratio of all accounts that are 90 or more days past due) continue to stabilize, according to TransUnion’s Q3 ‘2015 MarketTrends’ report.  Delinquency rates have remained in a narrow range of 2.58 per cent to 2.66 per cent over the previous three quarters, and the recent Q3 reading of 2.60 per cent indicates consumers’ steady ability to make payments on time. This is a 5.5 per cent improvement from the 2.75 per cent delinquency rate of Q3 2014.

Double-digit percentage yearly delinquency rate declines for installment loans and lines of credit played a large role in bringing down overall delinquencies. Installment loan delinquency rates dropped nearly 11 per cent from 3.49 per cent in Q3 2014 to 3.11 per cent in Q3 2015. Line of credit delinquency dropped 10 per cent from 0.79 per cent to 0.71 per cent in the same timeframe.

“Line of credit delinquency rates are now at the lowest levels we’ve seen since we began monitoring these statistics,” said Jason Wang, TransUnion’s director of research and industry analysis in Canada. “The recent interest rate cuts have helped consumers manage their payments, but we advise consumers to always remember to spend within their means, regardless of whether interest rates are low or high.”

90+ Day Delinquency Rates

Credit Product

Q3 2014

Q3 2015

Yearly PCT. Change

All Products

2.75 per cent

2.60 per cent

-5.49 per cent

Auto Loans

1.06 per cent

1.06 per cent

0.14 per cent

Credit Cards

2.36 per cent

2.30 per cent

-2.81 per cent

Installment Loans

3.49 per cent

3.11 per cent

-10.84 per cent

Lines of Credit

0.79 per cent

0.71 per cent

-9.94 per cent

Debt Levels Marginally Dropped with Exception of Auto Loans and Cards

Average debt levels for Canadians have remained consistent over the last two years. Average balances per consumer (excluding mortgages) moved from $21,379 in Q3 2014 to $21,247 in Q3 2015.

Almost every major city experienced a moderate yearly decline in their average balances per consumer, with Vancouver seeing the biggest drop—from $25,312 to $24,358. Toronto saw a marginal decline with average balances moving from $20,462 in Q3 2014 to $20,317 in Q3 2015.

While total consumer debt dropped slightly, auto loans and credit cards experienced 3 per cent annual increases in balances. “The auto sector continues to thrive, thanks in part to lower oil prices, so balance increases are expected in this industry,” said Wang. “Credit card debt has risen to a two-year high. With the holiday shopping season around the corner, we are going to keep a close eye on how Q4 spending affects debt levels on credit cards.”

Average Consumer Non-Mortgage Debt Levels

Credit Product

Debt at Q3 2014

Debt at Q3 2015

YoY Change

All Products



-0.62 per cent

Auto Loans



2.87 per cent

Credit Card



3.04 per cent

Installment Loans



-1.27 per cent

Lines of Credit



-4.66 per cent

More information about the Q3 2015 TransUnion MarketTrends can be found here




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