Friday, June 5, 2009

Household borrowing fell in 1st quarter, StatsCan says

Household borrowing fell in 1st quarter, StatsCan saysHousehold borrowing fell to $65 billion in the first quarter of 2009.(Jonathan Hayward/Canadian Press)

As the recession continues, Canadians are becoming a lot more reluctant to borrow money, new Statistics Canada data suggests.

Household demand for funds was $65 billion in the first quarter of 2009, a substantial drop from the $91 billion borrowed in the previous quarter.

The total demand for household borrowing had held steady at more than $100 billion for nine straight quarters before dropping below that figure for the last two.

Lower personal expenditures on goods and services, particularly purchases of motor vehicles and household furnishings, contributed to reduced household borrowing in the form of consumer credit and bank loans, the federal agency said in a release.

Lending institutions had been lowering interest rates during the period in an attempt to spur Canadians to borrow more. Despite the decrease in mortgage rates, net new mortgage borrowing also contracted during the first three months of 2009.

Banks have since begun to set rates higher. On June 1, Bank of Montreal raised its five-year fixed rate by .2 percentage points to 5.45 per cent.

Royal Bank had previously done the same.


corporatebully said...

RBC Bank President Gordon Nixon - Salary $11.73 Million


I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.

There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.

Phone or e-mail:
RBC President, Gordon Nixon, Toronto (416)974-6415
RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
RBC President, Atlantic Provinces, Greg Grice (902)421-8112 mail
RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302 mail
RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mail
RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mail
RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mail
Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519 mail

"Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"