Date Posted: September 14, 2021
Statistics Canada state that mortgage borrowing hit a record in the second quarter as the amount Canadians owe relative to their income have increased.
On a seasonally adjusted basis that household debt as a proportion of household disposable income rose to 173.1% compared to the first quarter being 172.6%. In other words, there was $1.73 in debt for every dollar of household disposable income.
Total borrowing in the quarter rose to $63.8 billion in the second quarter, almost double the first quarter. This was driven by $57.2 billion in mortgage loans while demand for non-mortgage loans was just $6.6 billion. The total stock credit market debt which includes consumer credit, mortgages, and non-mortgage loans total $2.53 trillion with $1.70 trillion of that being mortgage debts. The household debt service ratio, measured as a total obligated payment as proportion of household disposable income, fell to 13.32% in the quarter compared to the first quarter with 13.45%.
For the full CBC News article; click here.
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