Reassessing the Growth of HELOCs in Canada Using New Regulatory Data

Leila Al-Mqbali, Olga Bilyk, Stefan Caputo and James Younker

No 2019-14, Staff Analytical Notes from Bank of Canada

Abstract: Using new regulatory data on residential secured lending from Canadian banks, we assess the growth rate of home equity lines of credit (HELOCs). The new dataset is the first of its kind to provide information on individual components of combined mortgage-HELOC plans. These combined plans are an increasingly popular credit product. We find that the credit growth has been concentrated in the amortizing mortgage component of the combined plans rather than the non-amortizing HELOC component. In addition, the total outstanding balance of HELOCs has contracted over the past year, which is consistent with rising interest rates and a slowdown in the growth of household consumption.

Keywords: Credit and credit aggregates; Financial Institutions; Financial stability; Recent economic and financial developments (search for similar items in EconPapers)
JEL-codes: D1 G21 G28 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2019-05
New Economics Papers: this item is included in nep-ure
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocsan:19-14

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