Canadians Facing Rising Amounts of Debt

Monday, 12 December 2022 13:48

By Linda Morgan

Statistics Canada says households owe $1.83 for each dollar of disposable income they have.

Statistics Canada is reporting a jump in household debt in the third quarter.

The agency says for each dollar of disposable income, households now owe $1.83.

That amount was $1.82 in the second quarter of the year.

This comes as disposable income gained 0.8 percent, while household credit market debt increased 1.2 percent.

"Both mortgage and non-mortgage loans grew despite aggressive rate hikes throughout the quarter," Bank of Montreal economist Shelley Kaushik noted.

Mortgage debt hit $2.07 trillion across the country, while other forms of debt came to $722.6 billion.

In addition, while household debt grew, the value of assets owned by Canadians fell, causing the national net worth per capita to fall 3.8 percent.

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