You usually need to be in a recession to see household credit rising this slowly. And most of that slowing is happening in the mortgage space--not exactly surprising, given the ongoing adjustment in the housing market. The market is still in price-searching mode, and the adjustment is not over yet--especially in Vancouver and Toronto. How much of this slowing is due to the gravitational forces of unaffordable housing markets? Or higher interest rates? Or the impact of the mortgage stress test (B-20)? Of course, there's no way to fully disaggregate those forces. But more than a year after the introduction of B-20, we are in a position to day more about the impact of that change on the trajectory of the market in general, and alternative lending in particular.
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