OTTAWA — The amount Canadians owe relative to their income hit another new high in the third quarter.
Statistics Canada says household credit market debt as a proportion of household disposable income increased to 171.1 per cent, up from 170.1 per cent in the second quarter.
That means there was $1.71 in credit market debt, which includes consumer credit and mortgage and non-mortgage loans, for every dollar of household disposable income.
The household debt service ratio, measured as total obligated payments of principal and interest as a proportion of household disposable income, was relatively flat at 13.9 per cent, while the interest-only debt service ratio was 6.3 per cent, down from 6.4 per cent in the previous quarter.
Meanwhile, the total net worth of the household sector edged down 0.1 per cent to $10.61 trillion in the third quarter.
The move lower was due to a drop in home values as housing resale prices weakened. The value of household financial assets edged up 0.1 per cent.
The Canadian Press