Greater Victoria residents are among the most credit-worthy Canadians, but overall debt level continues to rise. (Derek Ford / District of Saanich)

Greater Victoria residents among the most credit-worthy Canadians

Yet debt levels continue to rise as Canadians owe $178 for every $100 earned

While residents of Greater Victoria are among the most credit-worthy Canadians, they also have seen their obligations rise, according to figures from Canada Mortgage and Housing Corporation (CHMC).

They show the average credit score (Equifax Risk Score) for residents in the Victoria Census Metropolitan Area (CMA) has risen to 780 in the third quarter of 2018 after a minor dip with the general trend line nonetheless pointing up. By comparison, Vancouver’s average credit score is 776.

RELATED: CMHC says Canadians debt levels hit record highs at end of last year

The report also notes that credit scores in both the Vancouver and Victoria CMAs exceed both provincial and Canadian averages in the third quarter of 2018, adding that urban centres dependent on oil and gas have suffered drops.

“With improvements in employment opportunities, growth in wages and generally improved ability for the average consumer to make payments on their loans since 2014, decreasing delinquencies across credit types have contributed to upward movements in average credit scores,” it reads.

Consider mortgage delinquencies. “Only 0.1 per cent and 0.12 per cent of outstanding mortgages in Vancouver and Victoria, respectively, were delinquent in [the third quarter of 2018] down slightly from 0.11 per cent and 0.13 per cent in the [third quarter of 2017],” the report notes. “Both Vancouver and Victoria’s delinquency rates remained below the provincial average of 0.16 per cent.”

This said, Canadians are adding debt faster relative to income. While their disposable incomes rose by 2.5 per cent in the fourth quarter of 2018, their average monthly obligations rose by 4.5 per cent. Overall, Canadians owed $178.50 for every $100 they earned in the fourth quarter of 2018, a record debt-to-income ratio.

Mortgage loans accounted for nearly two thirds of the total debt held by Canadians consumers. Home equity lines of credit (10.8 per cent), credit cards (5.3 per cent), auto loans (4.1 per cent) and personal lines of credits (3.1 per cent) made up the rest.

Notably, average Canadians with mortgages saw their mortgage obligations rise 4.4 per cent, with rising mortgage obligations also affecting non-mortgage debt.

While Victoria residents without mortgages saw their outstanding debt levels rise by 2.98 per cent, Victoria residents with mortgages saw their outstanding debt (excluding mortgage) rise 4.85 per cent.


Like us on Facebook and follow us on Twitter

wolfgang.depner@saanichnews.com

Just Posted

Victoria feels the pinch at the pump as gas prices jump 18 cents

Gas up to 157.9 cents per litre at some stations

For Central Saanich couple, fight against MS is a matter of family

Altenkirks sell greeting cards and wooden bowls to raise money for MS Society

Rugby Canada helps recovery efforts in Japan after typhoon cancels final match

Canadian players wanted to “give back in whatever small way they could”

Coast Collective ready to Raise the Roof with Langford art auction

The fundraiser is Friday, Oct 18 at the Royal Canadian Legion on Station Road

Saanich residents planning Halloween fireworks displays must plan ahead

Folks are required to attend one of three safety courses, buy a permit

WATCH: Greater Victoria’s top stories of the day

A round-up of the day’s top stories

POLL: Do you think the day of the federal election should be a statutory holiday?

Increasing voter turnout has long been a goal of officials across the… Continue reading

UPDATE: British couple vacationing in Vancouver detained in U.S. after crossing border

CBP claims individuals were denied travel authorization, crossing was deliberate

After losing two baby boys, B.C. parents hope to cut through the taboo of infant death

Oct. 15 is Pregnancy and Infant Loss Awareness Day in B.C.

Cheating husband sues mistress for gifted ring after wife learns about affair

The husband gave his mistress $1,000 to buy herself a ring in December 2017

B.C. boosts legal aid funding in new payment contract

‘Duty counsel’ service restored in some communities, David Eby says

VIDEO: Bear spies on cyclists riding by on Campbell River street

Riders seem unaware the bruin is mere feet away on the side of the road

Two Cowichan Tribes families devastated by duplex fire

Carla Sylvester sat in her vehicle, on Tuesday morning, with tears in… Continue reading

Alberta to join B.C.’s class-action lawsuit against opioid manufacturers, distributors

B.C. government claims opioids were falsely marketed as less addictive than other pain meds

Most Read