Household Debt Ratio in Canada Climbs on Renewed Borrowing
(Bloomberg) -- The ratio of household debt to disposable income rebounded in the third quarter as borrowing increased, while a key metric of financial pressure also ticked back up.
Household credit market debt rose to 170.7% of disposable income on a seasonably adjusted basis in the third quarter, from a revised 162.8% previously, Statistics Canada said Friday in Ottawa. That’s after mortgage borrowing rose to a new high, while household disposable income decreased, the agency said.
Payment deferrals on mortgages began winding down in the third quarter, removing some of the cushion households had to get them through the pandemic.
The household debt service ratio rose to 13.2% from 12.4% in the second quarter.
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