The key household debt ratio falls in the first quarter
OTTAWA – According to Statistics Canada, the amount Canadians owe relative to their income fell in the first quarter from the record high set in the fourth quarter of 2021, as income grew faster than debt.
The agency said that, on a seasonally adjusted basis, household credit market debt as a share of household disposable income fell to 182.5% from a record 185.0% in the previous quarter.
In other words, it says there was $1.83 of credit market debt for every dollar of household disposable income in the first quarter.
This decline came as household credit market debt rose 2.0%, but household disposable income rose 3.3%.
Mortgage debt stood at nearly $2 trillion, while non-mortgage loans stood at $706.2 billion.
The household debt-service ratio, measured as the total obligatory principal and interest payments on credit market debt as a proportion of household disposable income, was 13.48% in the first quarter, down from 13, 72% in the fourth quarter of 2021.
This report from The Canadian Press was first published on June 13, 2022.