OTTAWA — Statistics Canada says the amount Canadians owe relative to how much they are earning rose in the third quarter, pushed higher by growing mortgage debt.
The agency says household credit market debt as a proportion of household disposable income, on a seasonally adjusted basis, rose to 177.2 per cent in the third quarter compared with 176.7 per cent in the second quarter.
The reading translates into $1.77 in credit market debt for every dollar of household disposable income.
The increase came as household credit market debt rose 2.0 per cent, while household disposable income gained 1.7 per cent.
Statistics Canada says on a seasonally adjusted basis that households added $51.6 billion of debt in the third quarter, including $45.9 billion in mortgages and $5.7 billion in non-mortgage loans.
Despite the increase in debt, Statistics Canada says the household debt service ratio, measured as total obligated payments of principal and interest on credit market debt as a proportion of disposable income, fell to 13.32 per cent in the third quarter compared with 13.47 per cent in the second quarter.
This report by The Canadian Press was first published Dec. 10, 2021.
The Canadian Press