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TD released a report yesterday looking at Canadian household credit in June 2009. Their major findings included:
Canadian housing market
Canadian bank credit to households increased 9.9% over June ’08 and 1.1% over May ’09
This growth was largely based on bank loans secured by real estate, such as mortgages, and HELOCs
Household credit rose month over month due mainly to a strong housing market in June ’09
They believe the current average housing prices (up 3.6% over last June) and speed of sales (up 18% over last June) as unsustainable – and this most likely is a bringing forward of future demand due to lower interest rates
Canadian mortgages
This indicates lower demand for mortgages in the months ahead
Banks share of the mortgage market has increased, but this growth will slow as well
Loans & personal lines of credit
Bank personal loans & credit card balances continue to grow despite lower retail sales
Personal savings will rise through 2010, which will reduce consumer borrowing
They also included this table outlining the growth of various forms of Canadian household debt:
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