Lady overwhelmed by debt, tax, tax forms

Amid rising interest rates, Canadian households kept adding debt in June, according to new data from Statistics Canada.

Total household credit liabilities rose by 0.8% in June, an increase of $21.4 billion, to $2.76 trillion, the national statistical agency reported.

On a seasonally adjusted basis, total household borrowing was up 0.6% in June, down from 0.7% growth in May.

Mortgage debt rose by $18.0 billion in June, up 0.9%, to $2.04 trillion in June, StatsCan said.

On a seasonally adjusted basis, households’ mortgage debt grew by 0.7% in June, which also marked a slowdown from the 0.8% increase in May.

The annual growth rate for mortgages also slowed to 9.6%, StatsCan said, as the housing market showed signs of cooling.

For instance, the volume of existing home sales was down by 10.3% in June, and average sales prices dropped for the fourth consecutive month, it noted.

Additionally, StatsCan reported that non-mortgage borrowing was also up in June. Overall, non-mortgage loan debt grew by $3.4 billion (up 0.5%) in the month to $714.5 billion.

StatsCan said that credit card debt held at the banks was up 1.6%, and home equity lines of credit rose by 0.6%.