IDEAS home Printed from https://ideas.repec.org/p/bca/bocsan/19-14.html
   My bibliography  Save this paper

Reassessing the Growth of HELOCs in Canada Using New Regulatory Data

Author

Listed:
  • Leila Al-Mqbali
  • Olga Bilyk
  • Stefan Caputo
  • James Younker

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.

Suggested Citation

  • Leila Al-Mqbali & Olga Bilyk & Stefan Caputo & James Younker, 2019. "Reassessing the Growth of HELOCs in Canada Using New Regulatory Data," Staff Analytical Notes 2019-14, Bank of Canada.
    • Handle: RePEc:bca:bocsan:19-14
    as

    Download full text from publisher

    File URL: https://www.bankofcanada.ca/2019/05/staff-analytical-note-2019-14/
    File Function: Abstract
    Download Restriction: no
    File URL: https://www.bankofcanada.ca/wp-content/uploads/2019/05/san2019-14.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anson T. Y. Ho & Lealand Morin & Harry J. Paarsch & Kim P. Huynh, 2022. "Consumer credit usage in Canada during the coronavirus pandemic," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 88-114, February.
    2. Mr. Adrian Alter & Elizabeth M. Mahoney, 2020. "Household Debt and House Prices-at-risk: A Tale of Two Countries," IMF Working Papers 2020/042, International Monetary Fund.
    3. Alter, Adrian & Mahoney, Elizabeth M., 2021. "Local house-price vulnerability: Evidence from the U.S. and Canada," Journal of Housing Economics, Elsevier, vol. 54(C).

    More about this item

    Keywords

    Credit and credit aggregates; Financial Institutions; Financial stability; Recent economic and financial developments;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bca:bocsan:19-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bocgvca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.