A significant proportion of Canadians rated their credit scores as "very good"
In its examination of the latest Equifax data, the Canada Mortgage and Housing Corporation found that the average credit score of Canadian home owners nationwide has improved.
Residents in almost all major metropolitan markets reported an average of “very good” credit scores. The most improvements have been observed in the past 5 years, Better Dwelling reported.
A “poor” credit quality score is any number below 620, with the average of every Canadian (not just home owners) hovering between 620 and 679. Any credit score above this is less likely to be denied a loan, with “good” in the 680 to 719 range, “very good” between 720 and 779, and excellent anything above “780”.
The CMHC stated that Vancouver has the highest average score of the metropolitan markets examined, at 776 as of the first quarter of this year. This represented a 6-point increase over the past half-decade.
Meanwhile, the Equifax data showed that Toronto saw the greatest increase in the average credit score in the past 5 years, increasing by 10 points to 775 as of Q1 2018.
Montreal home owners held an average credit score of 768 in Q1 2018, up 5 points over the past 5 years. In comparison, Quebec City posted an average of 772, up 5 points over the same time frame. The CMHC noted that Montreal’s trend is reflective of improvements in other major cities in both Quebec and the rest of Canada.
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A separate analysis of data from the OSFI showed that a growing number of Canadians are using their home equity to secure loans, with the outstanding balance of HELOCs nationwide breaking all previous records to reach $258.97 billion in June 2018.
The total outstanding balance of all segments of loans secured by residential real estate also posted a record-high $286.81 billion in the same time frame. An estimated $2.169 billion has been added to this balance during the May-June interval alone, the OSFI data indicated.
