Debt level hits new record
According to Statistics Canada figures, household debt level hit a new record in the country with borrowing rising faster than income. Amount of debt compared with disposable income rose to 163.7 per cent in the third quarter. An average household has roughly $1.64 in debt for every dollar of disposable income. During the quarter disposable income increased 0.8 per cent and household credit market debt grew 1.4 per cent.
According to the numbers release, total household credit market debt, which includes consumer credit, and mortgage and non-mortgage loans, reached $1.892 trillion. Consumer credit debt was $572.3 billion, while mortgage debt stood at $1.234 trillion.The report on household debt came a day before the Bank of Canada is set to release its latest financial system review which will include an examination of household debt and potential vulnerabilities for the financial system.