Latest news with #TransUnionCanada
Yahoo
17-07-2025
- Business
- Yahoo
How the ‘Bank of Mom and Dad' has become essential for homebuying
Canadians looking to enter the housing market are almost certainly relying on help from parents or loved ones to make it happen even though housing prices are falling. Seventy per cent of Canadians who bought their home in the past two years say they would never have been able to afford it without some financial help with the down payment, according to a recent survey by Mortgage Professionals Canada (MPC), an industry association. 'Down payment assistance is no longer a backup plan; it's a requirement for many Canadians hoping to buy,' Lauren van den Berg, chief executive of MPC, said in a release. 'These findings confirm what brokers across the country are seeing every day: consumers are under pressure and they need expert, transparent advice to find a way forward.' The survey emphasizes the struggle many Canadians have with keeping up with their bills and adding to their savings accounts. About 20 per cent of respondents whose mortgage is up for renewal within the next two years are worried about what the payments may look like. TransUnion Canada estimates many homeowners face mortgage payments climbing 25 per cent or more when it comes time to renew and 27 per cent of Canadians already say they can't pay all their bills. 'Canadians are navigating a challenging financial landscape, with many adjusting their spending and prioritizing bill payments in response to rising costs and economic uncertainty,' Matt Fabian, director of financial services research and consulting at TransUnion Canada, said in a release. Homeowners aren't expected to receive much in the way of interest rate relief in the near term, either. On Tuesday, Statistics Canada said inflation climbed to 1.9 per cent in June, with economists warning that the data all but shuts the door on an interest rate cut by the Bank of Canada on July 30. If their expectations come to fruition, it would mark the third consecutive interest rate hold by the central bank. The good news is that interest rate holds have helped Canadians keep their debt loads steady, according to the MNP Consumer Debt Index, though two-thirds of respondents say they desperately need interest rates to fall some more. CRA keeps messing up despite an increased headcount Should Douglas, 66, start tapping his RRSPs? 'We see some stability in financial perception, but many households feel like their lives are on hold, stuck in a financial holding pattern as they wait for the proverbial dust to settle,' Grant Bazian, president of MNP Ltd., said in a release. 'Given the persistent economic pressures and a backdrop of global volatility, many are hesitant to make major financial or life decisions, unsure of what lies ahead.' • Email: bcousins@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Federal privacy czar starts probe into theft of customer data from Nova Scotia Power
HALIFAX — The federal privacy commissioner has launched an investigation into a ransomware attack that led to the theft of personal information belonging to 280,000 customers of Nova Scotia's electric utility. Privately owned Nova Scotia Power confirmed last week that hackers stole the data and published it on the dark web. Privacy commissioner Philippe Dufresne said in a statement Wednesday that he started the probe after receiving complaints about a security breach the utility reported in late April. 'Data breaches have surged over the past decade and this incident highlights the growing risks of cyberattacks for all organizations,' he wrote in the statement. Dufresne said he wants to make sure the utility is taking appropriate steps to deal with the breach, which the company says included disclosure of some customers' social insurance numbers. The commissioner says his investigation is looking at steps the company has taken to contain the breach, notify its customers and reduce the risk of fraud and identity theft. Nova Scotia Power says it's offering affected customers a two-year subscription for credit monitoring services through TransUnion Canada. It's also sent letters to customers informing them the stolen data may include their names, birth dates, email addresses, home addresses, customer account information, driver's licence numbers and, in some cases, bank account numbers. Some experts have criticized how the utility notified customers about the breach. According to the commission's website, federal privacy law requires notifications to be given "as soon as feasible" after a company has determined "a breach of security safeguards involving a real risk of significant harm" has occurred. The website also says the notice should include a description of the circumstances of the breach, the time it occurred, a description of the personal information taken, and a "description of the steps that the organization has taken" to reduce the risk of harm. Cybersecurity expert Claudiu Popa, CEO of Informatica Corp., questions whether these standards were met by the utility. Based on the letters he's seen sent to customers, Popa said the information does not provide much detail. "The further inadequacy was the lack of explanation of what could go wrong and what could be done with this information," he said, referring to the customer notifications. He also said the company's offer of a free, two-year subscription to TransUnion's monitoring service isn't long enough. "We should not be naive about the fact that these criminals now have a rich data set to exploit Nova Scotia victims for the foreseeable future, and that foreseeable future probably extends beyond 24 months," said Popa, author of "The Canadian Cyber Fraud Handbook." Nova Scotia Power spokeswoman Kathryn O'Neill said in an email Wednesday the company is aware the cyberattack "has been really concerning for some of our customers." "Impacted individuals have received detailed information about available resources and support," she wrote. "We continue to work with leading third-party cybersecurity experts on this complex investigation and the safe and secure restoration of our systems. We're also implementing additional safeguards to help prevent similar incidents in the future." In his statement, Dufresne said customers would be wise to sign up for credit monitoring services, and he said they should monitor their bank accounts and notify their financial institutions. This report by The Canadian Press was first published May 28, 2025. Michael Tutton, The Canadian Press Sign in to access your portfolio
Economic Times
28-05-2025
- Business
- Economic Times
Credit cards are feeding young Canadians more than actual food; As wages stagnate and rent soars, debt becomes the only thing they can afford
TIL Creatives With the cost of living outpacing incomes, a growing number of young Canadians are turning to debt to cover daily basics As the cost of living continues to rise and job prospects remain uncertain, an increasing number of young Canadians are finding themselves ensnared in a cycle of debt they struggle to data from Equifax Canada reveals a troubling trend, individuals aged 18 to 25 have experienced a 15.1 percent increase in delinquency rates compared to the previous year. Specifically, 90-day or more delinquencies on credit cards for this age group have surged by 21.7 percent, reaching a delinquency rate of 5.38 percent, significantly higher than the overall population's rate of 3.76 percent. Also Read: Canada's economy grows by only 1 percent in 2025, unemployment hits 7 percent "Being able to balance the cost of living with debt levels is more difficult and more challenging, which is why through the numbers we are seeing that stress come through," said Kathy Catsiliras, vice-president of analytical consulting for Equifax Canada. "They are finding it more challenging to stay current on their debt obligation, married with the fact we're seeing unemployment rates increase." Canada's unemployment rate rose to 6.9 percent in April, according to Statistics Canada. This uptick in unemployment, coupled with stagnant wages, has left many young Canadians without sufficient income to manage their debts. Consequently, some are resorting to credit cards or loans to cover essential expenses like food and rent. The challenges are further compounded by a stagnating job market, partly attributed to the ongoing trade tensions with the United States. Due to President Donald Trump's tariff policies, some companies have had to scale back hiring plans or lay off Terrell, a personal finance expert with NerdWallet, highlighted the multifaceted pressures facing young Canadians:"All of these factors combined can definitely make for a challenging financial situation in which your credit card is being used to bridge the gap, especially if you're someone who's living paycheque to paycheque," she said. The situation is exacerbated by the fact that many young individuals are new to credit and may lack the financial literacy to manage it effectively. Matt Fabian, TransUnion Canada's director of financial services research and consulting, noted:"They're getting used to the fact if they charge a lot, those payments go up and they're going to owe a balance. Some of them, they're able to adapt and do just fine. Some of them, it's a bit of trial by fire, so we do see sometimes heightened delinquency."However, Fabian also pointed out a silver lining:"We do see a high 'cure' rate, however, with youth who may have a 'trip and fall' eventually understanding how debt works and not missing payments."A TransUnion Canada report showed youth are among two groups driving up the total debt of Canadians, with the group seeing their outstanding balances grow by 30.6 percent compared to the previous experts suggest that young Canadians facing debt challenges should consider developing a debt repayment strategy, exploring options like balance transfer credit cards or debt consolidation loans, and seeking guidance from financial advisors. Budgeting is also crucial; ensuring that one can afford more than the minimum payment can prevent interest from accumulating and making debt repayment more difficult.
Global News
28-05-2025
- Business
- Global News
Federal privacy czar starts probe into theft of customer data from Nova Scotia Power
The federal privacy commissioner has launched an investigation into a ransomware attack that led to the theft of personal information belonging to 280,000 customers of Nova Scotia's electric utility. Privately owned Nova Scotia Power confirmed last week that hackers stole the data and published it on the dark web. Privacy commissioner Philippe Dufresne issued a statement today confirming he started a probe after receiving complaints about a security breach the utility reported in late April. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Dufresne says he's in discussions with the utility to ensure it is taking appropriate steps to deal with the breach, which has affected about half of Nova Scotia Power's customers. The commissioner says the investigation is looking into steps the company has taken to contain the breach, notify its customers and reduce the risk of fraud and identity theft. Story continues below advertisement Nova Scotia Power has said it's offering affected customers a two-year subscription for credit monitoring services through TransUnion Canada. It's also sent letters to customers informing them the stolen data may include their names, birth dates, email addresses, home addresses, customer account information, driver's licence numbers, and in some instances their bank account numbers. Dufresne says customers would be wise to sign up for a credit monitoring service to reduce the potential for fraud, and he says they should monitor their bank accounts and notify their financial institutions. This report by The Canadian Press was first published May 28, 2025.
Hamilton Spectator
28-05-2025
- Business
- Hamilton Spectator
Canadian Credit Market Reaches $2.5 Trillion in Outstanding Balances, with Gen Z Canadians Accounting for 10% of Credit Growth
Key findings from TransUnion report: TORONTO, May 28, 2025 (GLOBE NEWSWIRE) -- The first quarter of 2025 saw mixed outcomes in the Canadian credit market, according to TransUnion's Q1 2025 Credit Industry Insights Report (CIIR) . Growth was fuelled by increased borrowing from young Canadians and newcomers. Consumer balances for non-mortgage products rose across most products, driven primarily by below prime consumers. Subprime consumers continued to struggle as their delinquency rates rose at significantly higher rates than prime and above consumers. Regional differences in cost of living and economic conditions also led to varying delinquency trends across provinces. Gen Z Consumers Accelerated Overall Credit Participation with 30.6% Year-Over-Year Growth in New Balances After the decline in interest rates and inflation in late 2024, Canadians' total outstanding balances across all credit products grew by 4.7% year-over-year (YoY) and total outstanding credit debt reached $2.5 trillion in Q1 2025. Continued credit expansion, propelled by younger consumers, including new Canadians entering the credit market, was a key driver of this growth. As Gen Z consumers continued to participate in the credit market, outstanding balances within this generation have grown 30.6% from the prior year, contributing $12 billion or 10.3% of total new balance growth. Canadian newcomers also represent a significant portion of the growing credit market, driving $2.6 billion in new credit balances, a 6.3% increase YoY. 'As a growing share of Gen Z consumers actively engage with credit, lenders face a pivotal opportunity to shape lifelong financial relationships,' said Matt Fabian, director of financial services research and consulting at TransUnion Canada. 'This generation values digital-first experiences, personalized education and brands that align with their values. Prioritizing credit education, fostering early loyalty and offering seamless, mobile-friendly solutions will be key to staying relevant and building trust with these new-to-market borrowers.' Non-Mortgage Balances Continue to Grow, Driven by Below Prime Consumers Non-mortgage debt grew 2.4% as consumer balances continued to increase across most products. However, total non-mortgage debt did not grow equally across all risk tiers. Below prime average consumer balances grew 4.4%, with subprime consumers contributing the highest increase at 6.3%, while prime plus and super prime consumer balances remained mostly flat. The YoY growth in average balances among below prime consumers may be due to these consumers utilizing more credit to augment disposable income in the face of elevated prices. This trend was seen particularly with the growth in credit card and personal loan balances, as these are traditionally the products used by consumers for liquidity. Below prime consumer average balances across these products grew at a faster rate than overall borrower balance growth during this period. Additionally, the data shows regional disparities in the YoY growth rates of non-mortgage debt, although province rankings did not change from the previous quarter. P.E.I. and Newfoundland had the highest average debt per borrower, while Quebec and Manitoba had the lowest. While the gap between the highest and lowest average debt balances across provinces may not appear substantial, even modest differences in average debt per consumer can significantly influence delinquency rates. Consumers in provinces with higher average debt levels may be more susceptible to increases in interest rates as well as higher everyday living costs, making them more vulnerable to financial strain and increasing the likelihood of delinquency, particularly during economic downturns. 'The rise in balances from higher-risk and more vulnerable credit consumers signals a critical moment for lenders to reassess risk strategies and engagement models. Proactive credit monitoring, tailored financial support and early intervention tools can mitigate potential delinquencies while still maintaining consumer access to credit,' said Fabian. 'At the same time, consumers should continue to build financial resilience by understanding their credit profiles, seeking guidance when needed and using credit responsibly. Empowered, informed borrowers are key to a healthier credit ecosystem.' Lower Canada Consumer Credit Index Reflects Weakening Market Conditions Economic uncertainty has recently muted credit demand while supply remains strong. Additionally, uncertainty has shifted some credit behaviours as consumers balances have increased while credit performance has remained relatively stable from prior year, driving the Canada Consumer Credit Index to 100.3, down almost 6 points from the prior year. Differing Impact of Economic Volatility Across Risk Tiers A widening financial divide is emerging among credit consumers across Canada. While recent improvements in inflation and interest rates have provided relief for some, enabling them to reduce debt and strengthen their financial positions, others continue to face significant challenges. These consumers are still grappling with the prolonged effects of past economic volatility, highlighting an uneven recovery and growing disparity in financial resilience. Overall consumer-level serious delinquency (consumers 60 days or more delinquent on any credit product) was up 11 basis points YoY to 2.71% in Q1 2025. This increase was driven in part by the recent growth in new-to-credit consumers, who generally carry higher risk in their early years due to their limited credit experience. Even with the recent increase, the current levels of delinquency are similar to those seen prior to the pandemic. Subprime consumers have become more likely to experience delinquency soon after opening a new product, with the delinquency rate within the first six months of opening a new credit account doubling between 2020 and 2024. This is particularly evident for below prime credit card and personal loans, where consumers may be more sensitive to interest rates. Subprime consumers that opened a credit card in 2023 or 2024 were 1.7x–2.0x as likely to go delinquent within the first 12 months of holding that card than those who opened a card in 2020. These findings further demonstrate the increased vulnerability that subprime borrowers have to macroeconomic factors such as higher interest rates and increased cost of living. Geography is also playing a role in the vulnerability or resilience of consumers. A 16 basis point YoY increase in serious consumer delinquencies led to Alberta continuing to have the highest rate across all provinces in Q1 2025, driven by the volatility in oil and gas prices that play a large role in Alberta's economy. While Quebec remained the province with the lowest rate of delinquencies, it had a seven basis point increase YoY. 'We've seen volatility in delinquency rates attributed to a mix of regional economic pressures and demographic factors. Regional variations in both cost of living as well as wage growth, along with pressure from macro-economic cycles, disproportionately impact specific regions, and hence some provinces have had more volatile consumer credit performance,' Fabian said. 'These findings underscore the importance of regionally tailored lending policies and support systems to address the unique challenges faced by those households. Additionally, consumers in more vulnerable areas should stay vigilant in keeping current on payments, monitoring credit and building emergency savings.' About TransUnion (NYSE: TRU) TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we're the credit bureau of choice for the financial services ecosystem and most of Canada's largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. For more information visit: For more information or to request an interview, contact: Contact: Katie Duffy E-mail: Telephone: +1 647-772-0969 Photos accompanying this announcement are available at
