Canadian delinquency rates for non-mortgage loans declined in the first quarter of 2017, especially in major cities.

According to data released Thursday by TransUnion, in Toronto alone, delinquencies declined 7.55 per cent year-over-year, well outpacing other major cities like Winnipeg and Montreal, which also posted declines.

“The consumer credit market in Canada is expanding, and is doing so in a healthy manner,” TransUnion Canada director of research and consulting Matt Fabian said in the research report. “More consumers are gaining access to credit, and credit limits have been increasing at a strong rate during the last two years. At the same time, serious delinquency rates have remained relatively low.”

“It’s especially encouraging to see some major Canadian markets lead the way in delinquency declines and credit growth, as it bodes well for Canada’s overall economic activity.”

The delinquency drop comes alongside a rise in consumer non-mortgage debt levels, as Canadians wrapped Q1 with an average of $21,696 left on the ledger. Vancouver led the rise in overall debt, with the annual percentage rising 4.27 per cent. Toronto came in second with 3.02 per cent.

Car loans also continued to grow in the first quarter as balances rose 2.75 per cent on average and delinquency rates rose slightly (0.03 per cent) from the first quarter of 2016.

“The fact that delinquencies have not materially increased over the past year, despite the higher growth by below-prime consumers seen in 2015, is especially encouraging—consumers across the risk spectrum are taking care of their auto loans.” said Fabian.