OTTAWA — The amount Canadians owe relative to their income ticked higher in third quarter.
Statistics Canada says household credit market debt as a proportion of disposable income was 177.5 per cent in the third quarter on a seasonally-adjusted basis. That compared with 177.4 per cent in the second quarter.
In other words, Canadians owed nearly $1.78 in credit market debt, which includes consumer credit and mortgage and non-mortgage loans, for every dollar of household disposable income in the third quarter.
Total credit market borrowing slowed for the third consecutive quarter as households borrowed $18.3 billion, down from $20.0 billion in the previous quarter.
Mortgages posted a third consecutive quarterly decline as they decreased by $1.2 billion. Demand for consumer credit also fell by $500 million, while non-mortgage loans decreased by $100 million.
The household debt service ratio, measured as total obligated payments of principal and interest as a proportion of disposable income, was 14.5 per cent in the third quarter, relatively unchanged from the previous quarter.
The Canadian Press