Businesswoman Calculating Expenses on Printed Receipts
gajus/123RF

Statistics Canada says household income grew slightly faster than debt in the second quarter, resulting in a slightly lower debt-to-income ratio.

The agency says credit market debt as a proportion of household disposable income edged down to 177.1% on a seasonally adjusted basis, compared with about 177.5% in the first quarter.

We asked advisors like you to help us build a solution that would meet today’s fixed income challenges.
Visit rbcgam.com/fipools to see what we came up with.

In other words, Canadians owed roughly $1.77 in credit market debt, which includes consumer credit, mortgages and non-mortgage loans, for every dollar of household disposable income.

On a seasonally adjusted basis, total credit market borrowing increased to $23.5 billion from $18.9 billion in the previous quarter.

Credit market debt totalled $2.25 trillion in the second quarter including nearly $1.47 trillion in mortgage debt and $782.9 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, edged up to 14.93% in the second quarter.