Residents of 3 York municipalities have more non-mortgage debt than the Ontario average
A latest study in 25 large municipalities across the province found that the average consumer debt of residents of Richmond Hill, Markham and Newmarket is higher than the average of Ontarians.
the report from Borrowell, a fintech company that offers free credit report monitoring, found average consumer debt (excluding mortgages) in the province to be $ 27,523 in the first quarter of 2021, remaining stable from 2020 with a slight decrease of 3%.
“This is surprisingly positive news, given the extent of the COVID lockdown measures and the loss of 355,300 jobs in Ontario in 2020,” the report noted.
Consumer debt in the study includes installment credit (personal loans, auto loans, and student loans) and revolving credit (credit cards and lines of credit). The findings are based on aggregate data from over 485,000 consumer credit reports in Ontario.
Of the 25 cities in the study, Richmond Hill had the second highest average consumer debt at $ 37,827, Markham had the third highest level of debt at $ 36,809, and Newmarket ranked seventh. with $ 30,982, all above the provincial average.
Numbers for Richmond Hill and Markham were down eight percent and six percent respectively from a year ago. Newmarket is virtually unchanged from the first quarter of 2020.
The 10 cities with the most consumer debt are all in the Greater Toronto Area (GTA), led by Oakville with $ 48,410.
Toronto, however, was at the bottom of the scale, ranking 15th with average consumer debt of $ 24,825, $ 2,698 less than the provincial average.
The three cities in Ontario with the lowest average amount of consumer debt are Hamilton ($ 19,932), Niagara Falls ($ 21,341) and Windsor ($ 21,397).
As the province is set to reopen, discretionary spending and consumer debt are set to rise again, according to Borrowell.
“We have seen positive trends in consumer debt over the past year, but the coming months could mark a significant change,” said Andrew Graham, co-founder and CEO of Borrowell.
“The loan deferral programs have already started to end, and people are eager to get out and socialize again. The financial habits that consumers have developed over the past year will almost certainly change as more opportunities to socialize and spend this summer become available. We could see an increase in consumer debt over the next few months. “