OTTAWA — According to Statistics Canada, the amount Canadians owe relative to what they earn rose in the third quarter, pushed up by rising mortgage debt.
The agency said household credit market debt as a share of household disposable income, on a seasonally adjusted basis, rose to 177.2% in the third quarter from 176.7% in the second quarter.
The reading translates to $1.77 of credit market debt for every dollar of disposable household income.
This increase came as household credit market debt rose 2.0%, while household disposable income rose 1.7%.
According to Statistics Canada, on a seasonally adjusted basis, households added $51.6 billion in debt in the third quarter, including $45.9 billion in mortgages and $5.7 billion in non-mortgage loans.
Despite the increase in debt, Statistics Canada reports that the household debt-service ratio, measured as the total obligatory payments of principal and interest on credit market debt as a proportion of disposable income, fell to 13.32% in the third quarter, compared to 13.47% in the second quarter.
This report from The Canadian Press was first published on December 10, 2021.
By The Canadian Press