What Canadian households owe relative to their income is on the rise: StatCan

OTTAWA –

Statistics Canada says the quantity Canadian households owe relative to their revenue rose within the third quarter.

The company says family credit score market debt as a proportion of family disposable revenue elevated to 183.3 per cent on a seasonally adjusted foundation within the third quarter in contrast with 182.6 per cent within the second quarter.

In different phrases, Statistics Canada says there was $1.83 in credit score market debt for each greenback of family disposable revenue within the third quarter of 2022.

The improve got here as households’ disposable revenue gained 0.8 per cent within the quarter, whereas family credit score market debt rose 1.2 per cent.

The family debt service ratio, measured as complete obligated funds of principal and curiosity on credit score market debt as a proportion of family disposable revenue, rose to 13.97 per cent within the third quarter in contrast with 13.46 per cent within the second quarter.

The complete quantity of family credit score market debt, which included shopper credit score, and mortgage and non-mortgage loans, grew 1.2 per cent to succeed in practically $2.8 trillion within the third quarter together with $2.07 trillion in mortgage debt whereas non-mortgage loans totalled $722.6 billion.

This report by The Canadian Press was first printed Dec. 12, 2022.