Canadian Household Debt Hits Record High

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.

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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