Household Debt Hits Record High
CBJ — Statistics Canada says the level of household credit market debt rose to 166.9% of adjusted disposable income in the third quarter, compared with 166.4 per cent in the second quarter. While that .5% may not seem like much on the surface, it translates into billions of dollars of additional debt nationwide.
In lay terms, it means that for every one dollar of disposable income Canadians have available, they owe $1.67 in debt, which includes consumer credit and mortgage and non-mortgage loans.
The increase came as adjusted disposable income increased 1.0%, while household credit market debt grew 1.3%.
Canada’s two hottest housing markets — Vancouver and Toronto — could have a say in where household debt ratios head in the new year.
Total household credit market debt totalled $2.004 trillion at the end of the third quarter.
Consumer credit was $590 billion, while mortgage debt stood at $1.312 trillion.
Statistics Canada says the share of mortgage debt edged up to 65.5% from 65.1% in the second quarter.