Household debt increases but real estate adds to net worth

by Steve Randall16 Sep 2016
Canadians keep on borrowing as low interest rates make credit more attractive.

Statistics Canada released figures Thursday showing the debt-to-disposable-income ratio increased to 167.6 in the second quarter of 2016, up from 165.2 in the previous three months. The 2 per cent rise in debt exceeded the 0.5 per cent rise in disposable income.

Total borrowing was $1.9 billion with mortgages accounting for $1.2 billion. Mortgages made up 65.6 per cent of consumer credit, unchanged from the previous quarter, the first time since 2010 that the share had not increased.

Household net worth increased to $271,300 on a per capita basis, driven by a 2.2 per cent rise in home prices.

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