The amount Canadians owe relative to their income rose in the second quarter as their debt levels rose faster than their income, Statistics Canada said Monday.
Household credit market debt as a share of household disposable income rose to 181.7%, on a seasonally adjusted basis, in the second quarter, from 179.7% in the first quarter, the federal statistical agency said.
In other words, there was about $1.82 of credit market debt for every dollar of disposable household income in the second quarter.
This increase came as household disposable income rose 1.0%, while household credit market debt rose 2.1%.
According to Statistics Canada, on a seasonally adjusted basis, households added $56.3 billion in debt in the second quarter, including $48.7 billion in mortgages.
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 13.63% in the second quarter, down from 13, 34% in the first trimester.
To see in video