Household borrowing accelerated in February, according to new data from Statistics Canada.
Total credit liabilities of households rose by $10.1 billion in February to $3.05 trillion, the national statistical agency reported.
The 0.3% monthly increase in borrowing drove an acceleration in debt growth, which rose at a 4.1% annualized rate in February, up from 3.3% in January, StatCan said.
An increase in mortgage borrowing, which rose 0.4% in the month ($9.1 billion), underpinned the overall credit growth.
Other forms of debt rose by just 0.1% in the month, StatCan reported — as balances on home equity lines of credit (HELOCs) rose by $0.5 billion, and credit card debt was up $0.3 billion (an increase of 0.3%).
Household debt secured by real estate — including both mortgage debt and HELOCs — drove the increase.
Total real estate-related borrowing was up 0.4% in the month, driven by a $9.1-billion increase in mortgage debt, and a $0.5-billion rise in HELOC balances.
At the same time, borrowing by private non-financial corporations accelerated too, StatCan noted, rising by 0.6% in February — an increase of $14.2 billion to $2.24 trillion.
StatCan said that overall borrowing by private non-financials — comprised of outstanding loans and debt securities — rose to $15.6 billion in February, up from $9.8 billion in January.