Household debt Canada

2022 - 12 - 13

Canadians are racking up household debt while Liberals protect ... (ndp.ca)

In response to a recent Statistics Canada report on household debt in Canada, NDP Finance Critic Daniel Blaikie issued the following statement:

The Liberals are making matters worse as they choose to protect corporate profits at the expense of Canadian families already scrambling to get by. We have been asking the Liberals to implement a windfall tax to make CEOs pay what they owe. This will allow the government to invest for help for Canadian families who desperately need it now, with measures like removing the GST from home heating.

Post cover — Image courtesy of "Better Dwelling"

Canadian Household Debt Is Rising Much Faster Than Income ... (Better Dwelling)

Credit market debt includes mortgages, non-mortgage loans, and consumer credit balances. Disposable income is what households have left after mandatory ...

Household credit market debt to disposable income is a measure of relative indebtedness. During the peak of the 2018 rate hike cycle, it was also slightly higher. It’s extremely high for a developed country, and every point increased above 70% is a drag on GDP growth. Falling ratios mean income is rising faster than credit. It also means households are more sensitive to interest rate hikes or shock. As the ratio climbs even further, they become more vulnerable to economic shock.

How heavy is Canada's current household debt load? (Mortgage Professional America)

The Canadian household debt-to-income ratio spiked to 183% during the third quarter amid the outsized-rate-hike environment, according to the latest data ...

The household debt service ratio went up from 13.46% in Q2 to 13.97% in the third quarter. “Chances are you’re going to see an increased interest bite from household budgets equal to about 2% or 3% of GDP,” Stanford said. Net worth per capita fell by 3.8%. The 0.8% increase in disposable income was outstripped by the 1.2% rise in household credit market debt during the period. This was significantly higher than the 177% ratio seen in Q3 2021, and veering close to the record high of 184.6% established during the third quarter of 2018, The Canadian Press reported. StatCan reveals the latest in Canada's household debt-to-income ratio

Household Debt In Canada Rose In Q3: StatCan (Baystreet.ca)

Personal debt in Canada rose 3% in the third quarter from a year earlier as high consumer prices and rising interest rates to lower them continued to impact ...

That record was set in the third quarter of 2018 prior to the COVID-19 pandemic. The record for household debt as a proportion of household disposable income is 184.6%, or almost $1.85 of debt for every dollar of disposable income. According to Statistics Canada, there was $1.83 in debt for every dollar of household disposable income in the third quarter, up from $1.77 a year ago.

BMO Comments on Canada's Household Debt (marketscreener.com)

(MT Newswires) -- Bank of Montreal (BMO) said that Canadian households' debt-to-income ratio rose again in Q3, as debt rose faster than incomes.

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Household debt could cripple the economy, an economist warns ... (PiPaNews)

Jim Stanford, the director of the Center for Future Work, said debt is so high that as interest rates rise, disposable income usually spent on consumer goods is ...

Canadians will have to continue to endure the rigors of higher inflation,” Macklem said. In the second quarter, it borrowed $11.5. He said they are working and the country needs to stay on track. Last week it raised the key policy rate by another 50 basis points to 4.25 percent in a bid to fight inflation. Statistics Canada’s new figures show that for every dollar of disposable income there was $1.83 in credit market debt in the third quarter of 2022. “Chances are that you’ll see a bigger reduction in interest from household budgets, equivalent to about two or three percent of GDP,” he said.

Are you concerned about the amount of Canadian consumer debt? (Castanet.net)

Equifax Canada says an increase in borrowers helped push total consumer debt to $2.36 trillion in the third quarter for a 7.3 per cent rise from last year, ...

First-time home buyers are paying over $500 more for almost the same loan amounts as first-time buyers last year. New mortgage volume dropped 22.7 per cent in the quarter compared with last year and by 14.9 per cent compared with the third quarter of 2019. Overall non-mortgage debt came in at $599.9 billion for a 5.3 per cent climb from last year, and up 1.9 per cent from the third quarter of 2019, as the number of borrowers rose by 3.1 per cent. Average spending put on credit cards was almost $2,447, a 21.8 per cent jump from the third quarter of 2019. Credit card spending in the quarter was up 17.3 per cent from last year to an all-time high for the time period. Equifax Canada says an increase in borrowers helped push total consumer debt to $2.36 trillion in the third quarter for a 7.3 per cent rise from last year, even as mortgage volumes decline.