Canadians Turn To Loans To Manage Rising Costs

As temperatures drop nationwide, Canadians are preparing their homes for winter while overcoming the rising cost of goods and supply chain delays, says a report by Simply Group, a non-bank consumer lender. In the third quarter, the group saw a 10 per cent increase in the total value of loan applications for home renovations and upgrades, when compared to the second quarter of 2021. Although the company saw a slight decrease in the number of loan applications, the total number of approved applications has remained steady (0.3 per cent). This suggests the rising cost of goods and services due to the supply chain issues has driven the increase in the total value of loans issued this quarter. On a provincial level, the Maritime provinces had the highest increase in applications with Nova Scotia showing a 77 per cent increase in home renovation loan applications quarter-over-quarter and Newfoundland following with a 24 per cent increase in applications. New Brunswick had a six per cent increase. This provincial breakdown suggests growth of home improvement financing in the Maritime provinces – a trend tied to the record number of Canadians who re-settled on the Atlantic coast throughout the pandemic.