Posted on 09/12/2015 7:04:05 PM PDT by Lorianne
Statistics Canada says the amount owed by Canadians compared to disposable income climbed to 164.6 per cent in the second quarter ___ A key indicator of household debt hit a record high in the second quarter of 2015 as lower mortgage rates drove increased borrowing, Statistics Canada figures show.
The ratio of debt to disposable income reached 164.6 per cent as debt loads grew faster than incomes, the federal agency noted in its quarterly National Balance Sheet Accounts.
That means for every $1 of after-tax income Canadians earned, they owed nearly $1.65 in credit market debt, which includes mortgages, credit cards and other kinds of consumer loans.
The ratio was 163 per cent in the previous three-month period, Statistics Canada said.
The increase “came as no surprise,” TD Bank economist Jonathan Bendiner wrote in a commentary.
Rising mortgage debt drove most of the growth as interest rate cuts by the Bank of Canada earlier in the year spurred borrowing, especially in the hot housing markets in British Columbia and Ontario, Bendiner noted.
(Excerpt) Read more at thestar.com ...
What does this have to do with anything? Forgive me for asking.
Sounds like personal debt is following the government model of debt; unsustainable.
I think it’s to illustrate the housing bubble created by ZIRP.
And we all know what happens to bubbles.
It sucks CA is in a recession. We have been in one for going on 7 years now. I guess it took the oil market to tank for CA to get into this mess with us.
Was Canada’s oil market keeping their single-payer healthcare funded? If so, watch for even less CA healthcare.
“Was Canada’s oil market keeping their single-payer healthcare funded?”
No.
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