Statistics Canada reports key debt ratio ticked higher in third quarter
OTTAWA—The amount Canadians owe relative to their income ticked higher in the third quarter.
Statistics Canada says household credit market debt as a proportion of disposable income was 177.5 per cent in the third quarter on a seasonally-adjusted basis. That compared with 177.4 per cent in the second quarter.
In other words, Canadians owed nearly $1.78 in credit market debt, which includes consumer credit and mortgage and nonmortgage loans, for every dollar of household disposable income in the third quarter.
Total credit market borrowing slowed for the third consecutive quarter as households borrowed $18.3 billion, down from $20.0 billion in the previous quarter.
Mortgages posted a third consecutive quarterly decline as they decreased by $1.2 billion. Demand for consumer credit also fell by $500 million, while nonmortgage loans decreased by $100 million.
The household debt service ratio, measured as total obligated payments of principal and interest as a proportion of disposable income, was 14.5 per cent in the third quarter, relatively unchanged from the previous quarter.