Household debt growth modest in June

HELOC balances decline, cooling credit card and mortgage growth

Personal finances

Household debt growth was modest in June, as home equity lines of credit (HELOC) borrowing declined, pushing down non-mortgage debt, according to new data from Statistics Canada.

Total household borrowing rose 0.1% in June to $2.86 trillion, led by a 0.2% increase in mortgage debt.

While mortgage borrowing grew by $4.6 billion in the month, other forms of household borrowing contracted by $0.4 billion, tempering the overall increase.

In particular, StatsCan reported that HELOC balances declined by $0.7 billion in the month, more than offsetting a $0.5-billion increase in credit card debt.

Other forms of non-mortgage borrowing (excluding HELOCs and credit cards) were also down by $0.3 billion in June, it said.