Equifax Canada data reveals 24% jump in Annualized Delinquency Rate
TORONTO - Equifax Canada today released the latest consumer credit delinquency data which shows that Canadians continue to fall behind on their credit payments at an ever-increasing rate. The average delinquency rate for Canada rose by approximately 24% over a one-year span from June 30, 2008 to June 30, 2009. The average delinquency rate for all of Canada as of June 30, 2009, was 1.56%, a 3% increase over May 2009.
Provincially, June numbers reveal that Nova Scotia continues to have the highest average delinquency rate at 2.09%; Saskatchewan again had the lowest rate at 1.24%. Ontario's rate was 1.78%.
Equifax Canada defines delinquent accounts as credit facilities that have not received a payment for at least 90 days. The average delinquency rate is calculated by comparing the number of delinquent credit facilities to the total number of credit facilities. Equifax Canada's experienced team of consultants and analysts compute delinquency rates by analyzing data from Canadian lenders who report to it on a daily basis.
On a yearly basis, the average delinquency rates have been rising dramatically in Alberta (32%) and British Columbia (30%), and, on the east coast, Prince Edward Island experienced a 27% increase. The national yearly average rate of increase is approximately 24%.
It is important to note that British Columbia (1.35%) and Alberta (1.46%) continue to have average delinquency rates that are lower than the national average. In Prince Edward Island (2.04%), however, average delinquency rates were higher than the national rate.
Calgary sees sharpest jump
Urban areas experienced some of the largest jumps in delinquency rates. Five out of the ten cities monitored by Equifax Canada have annual increases in delinquency rates that are higher than the national average:
June 2009 Year over Year
Delinquency Rate Increase (%)
Calgary 1.36% 35%
Montreal 1.44% 23%
Vancouver 1.21% 27%
Quebec City 0.83% 22%
Edmonton 1.45% 31%
London 1.70% 26%
Hamilton 1.75% 25%
Toronto 2.03% 20%
Canada 1.56% 24%
With the exception of Prince Edward Island and Quebec City, all provinces and cities monitored by Equifax Canada from May 2009 to June 2009 experienced an increase in their average delinquency rate.
Toronto continues to have the highest delinquency rate at 2.03%, even though its yearly increase rate is 20.12%, which is below the national average.
This is another in a series of news releases that will feature Equifax Canada's financial and demographic data, which can help businesses target opportunities and make informed decisions. If you would like to find out how Equifax Canada can use their unique insights to help you make better decisions for your business, please contact us at 1-800-278-0278 or visit our website at www.equifax.ca.
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