Statistics Canada says key household debt ratio rose in the first quarter
OTTAWA -- Statistics Canada says a key measure of household debt rose in the first quarter as the COVID-19 pandemic began to take hold of the economy.
The agency says that household credit market debt as a proportion of household disposable income rose to 176.9 per cent from 175.6 per cent.
In other words, there was $1.77 in credit market debt for every dollar of household disposable income.
Statistics Canada added that annual trends show that lower income households tended to have a higher debt to disposable income ratio.
Overall, it says credit market debt totalled $2.33 trillion at the end of the quarter including $1.53 trillion in mortgage debt and $802.1 billion in consumer credit and non-mortgage loans.
The household debt service ratio -- measured as total obligated payments of principal and interest on credit market debt as a proportion of household disposable income -- fell to 14.67 per cent from 14.81 per cent.
- House of the Week: $1.6 Mil House with Insta-Worthy Backyard
- Brampton father celebrating big lotto win
- Ontario reports 491 new COVID-19 cases, highest daily increase in months
- All COVID-19 cases in Brampton schools for the week of September 21 to 26
- Ontario reports 435 new COVID-19 cases, no new deaths
- Average Canadian debt rose 2.7 per cent to $72,950, says Equifax Canada
- Canadians taking steps to avoid credit card debt, despite economic pressure
- Major Bank Forgives Debt of Its Canadian Credit Card Holders
- Tips on Managing Debt When Interest Rates Rise
- Survey finds Canadians' top financial priority is getting out of debt