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Average new mortgage tops $300,000 for first time as consumer debt in Canada hits $2 trillion

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Consumer debt in Canada rose 3.8 per cent in the third quarter to $2.041 trillion, driven by the surging housing market and new auto loans, Equifax Canada’s latest report reveals.

Mortgage balances were up 6.6 per cent from the year before and the average new mortgage loan rose 8.6 per cent to exceed $300,000 for the first time.

“Homebuyers are largely the reason why we’ve crossed over the $2 trillion threshold,” said Rebecca Oakes, AVP of Advanced Analytics at Equifax Canada.

New auto loans were also up 11.7 per cent from last year and average auto loan amounts are at their highest level in four years. Oakes said car prices have increased as manufacturers have not been able to keep up with a rise in demand during the pandemic. There is speculation that consumers are buying more cars to avoid public transportation.

Overall average consumer debt rose to $74,897, up 3.3 per cent from the same period last year.

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