I found a great article about the challenges Canadian newcomers are facing as inflation impacts their credit. Here’s a quick breakdown of the key points from Equifax and the Business Examiner (link to the full article at the bottom). How do these trends resonate with what you’re experiencing? Let’s connect to talk about it!

Newcomers and Credit: Tough Times Ahead

Newcomers to Canada and those new to credit are facing growing challenges. Among those who’ve been active with credit for 12-36 months, missed payments are on the rise—1 in 22 missed a payment in Q3 2024, compared to 1 in 28 last year. Many who opened credit files during peak immigration years are now struggling with high inflation and rising unemployment, making it harder to stay on top of payments.

Relief for Mortgage Holders

Lower interest rates have provided a bit of relief, particularly for mortgage holders. While overall delinquency rates remain higher than last year, the pace of missed payments is starting to slow. That said, affordability challenges in provinces like Ontario and BC are keeping delinquency rates elevated in those regions. Thank goodness if you’re living in Alberta!!

Auto Lending and Rising Debt

Consumer debt hit $2.54 trillion in Q3 2024, driven largely by auto loans. Lower used car prices and better financing deals are helping consumers afford vehicles again, with non-bank auto loans seeing a 12% increase year-over-year.

Credit Card Challenges

While some Canadians are using rate cuts to pay off credit card balances, total credit card debt has climbed 9.4% since last year. With the holiday season here, it’s a good time to revisit your spending habits and ensure financial stress doesn’t pile up.

Let’s chat about how these trends might be affecting you or someone you know. Financial wellness is a journey—don’t hesitate to reach out!

FULL LINK TO ARTICLE: https://businessexaminer.ca/victoria-articles/item/equifax-affordability-challenges-still-persist/?utm_campaign=Daily%20News&utm_medium=email&_hsenc=p2ANqtz–WR75cLdbvV24oK9dUZOuEPGRj1CeuVPtc5bZqRRjMzC3r0Jlmc-LnTwbmMhganHoeG0aPflXJDRG6ANAFbtVw5WuWyw&_hsmi=336101907&utm_content=336101907&utm_source=hs_email