TORONTO--(BUSINESS WIRE)--As temperatures drop nationwide, Canadians are preparing their homes for winter while overcoming the rising cost of goods and supply chain delays. Simply Group, Canada’s non-bank consumer lender of choice, analyzed the third quarter of 2021 to understand how Canadians are planning their home improvement projects in anticipation of changing seasons and supply chain shortages.
In Q3, Simply Group’s data reported 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).
“The rising cost of goods and services due to the supply chain issues has driven an increase in the total value of loans issued this quarter,” said Lawrence Krimker, CEO of Simply Group and owner of SNAP Home Finance. “With our innovative financing solutions, homeowners can better manage the rising costs associated with the products and services they need to modernize or safeguard their properties.”
Canadians prepare for winter with increase in HVAC installations
Although there was a slight decrease in essential renovation financing applications Q3 vs. Q2, Q3 reported a 27 per cent increase in application volume vs. Q1. This points to steady investment in essential home upgrades, such as HVAC, windows and doors, and roofing.
“This continued investment in essential home renovations shows that Canadians are still motivated to complete upgrades on their homes, and I expect to see this trend continue through Q4 and the winter,” added Krimker. “I would advise, that everyone considering these improvements plan ahead to avoid supply chain delays that are expected to continue through the winter.”
Maritime provinces show highest increase in applications
On a provincial level, Simply Group reported that Nova Scotia saw a 77 per cent increase in home renovation loan applications in Q3, compared to Q2 2021. Newfoundland followed with a 24 per cent increase in applications, and New Brunswick with a 6 per cent increase on loan applications in Q3, compared to the previous quarter. 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.
About Simply Group
With more than $3 billion home improvement loans to over 500,000 Canadians, Simply Group (mysimplygroup.com) provides consumers with industry leading, high-efficiency, home comfort equipment and financing solutions, to modernize their residential properties. Simply Group knows that its people are its greatest asset and is proud to be Great Place to Work-Certified since 2016. In 2020, Simply Group was named Best Business of the Year by the Canadian SME National Business Awards.