(OTTAWA) 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.
Posted at 11:20 a.m.
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.