Statistics Canada Reports Key Debt Ratio Rises in Third Quarter



A sign outside a Statistics Canada building was seen in Ottawa on Friday, March 12, 2021. THE CANADIAN PRESS / Justin Tang

OTTAWA – According to Statistics Canada, the amount Canadians owe over what they earn increased in the third quarter, pushed up by growing mortgage debt.

The agency says household credit market debt as a proportion 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 in credit market debt for every dollar of household disposable income.

The increase came as household debt in the credit market rose 2.0%, while household disposable income rose 1.7%.

Statistics Canada reports, on a seasonally adjusted basis, that 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, according to Statistics Canada, the household debt service ratio, measured as the total mandatory repayments of principal and interest on credit market debt as a proportion of disposable income, has fallen. to 13.32% in the third quarter, against 13.47% in the second quarter.

This report by The Canadian Press was first published on December 10, 2021.


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John A. Bogar