While national wealth has increased, Canadian households hold $1.68 in credit market debt for every dollar of disposable income.
That’s the latest from Statistics Canada in the “National balance sheet and financial flow accounts, second quarter 2016” released today.
According to the report:
Total household credit market debt (consumer credit, and mortgage and non-mortgage loans) reached $1,973 billion at the end of the second quarter. Consumer credit was $585.8 billion, while mortgage debt stood at $1,293 billion. The share of mortgage liabilities to total credit market debt was unchanged at 65.6%, ending an unbroken upward trend that began in the first quarter of 2010.
An increase in household credit market debt (+2.0%) outpaced weaker-than-normal growth in disposable income (+0.5%) in the second quarter. Consequently, the ratio of household credit market debt to disposable income (excluding pension entitlements) rose from 165.2% in the first quarter to 167.6% in the second quarter. In other words, households held $1.68 in credit market debt for every dollar of disposable income.
You can read the full report here.
Related media stories:
Financial Post/Vancouver Sun: Canada’s household debt is now bigger that its GDP, for the first time.
CBC.CA: Canadian key household debt ration hits record high
The Globe and Mail: Canadian household debt soars to yet another record
Global News: Record debt: Canadian households sink deeper and deeper into the red