The latest from Statistics Canada echoes its last few reports – Canadian household debt continues to grow.
Canadian households, on average, held $1.65 in credit market debt for every dollar of disposable income.
In its National Balance Sheet and Financial Flow Accounts (Q4, 2015) Stats Can says that:
Total household credit market debt (consumer credit, and mortgage and non-mortgage loans) reached $1,923 billion at the end of the fourth quarter, up 1.2% from the previous quarter. Consumer credit debt was $573.6 billion, while mortgage debt stood at $1,262 billion. Over the year, households increased their mortgage liabilities by $74.4 billion, a rise of 6.3% from the previous year, and the strongest growth since 2011.
The ratio of total household debt to total assets was largely unchanged in the fourth quarter, edging down to 17.1%. This ratio sits between the peak of 19.3% recorded in the first quarter of 2009 and the low of 13.8% in the second quarter of 1997.
The ratio of household credit market debt to disposable income (excluding pension entitlements) rose to 165.4% in the fourth quarter from 164.5% (revised from 163.7%) in the third quarter. In other words, households held $1.65 in credit market debt for every dollar of disposable income. Disposable income increased 0.6%, a slower pace than that of household credit market debt (+1.2%).
Y0u can see the full report here.
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