Canadian debt-to-income falls from record high in Q1: StatCan
Canadian household debt as a share of income dipped in the first quarter but remained near record highs, Statistics Canada said on Wednesday in a report likely to reinforce concerns that consumers are becoming overly indebted.
The ratio of debt to disposable income edged down to 166.9 per cent from an adjusted 167.2 per cent in the fourth quarter. That meant Canadians owed $1.67 for every dollar of disposable income.
The Bank of Canada - which warns borrowers that interest rates will one day move up from near record lows - last week said rising consumer debt levels and an unbalanced housing market had raised household vulnerabilities.
On a seasonally adjusted basis, households borrowed $27.5 billion in the first quarter, down from $27.6 billion in the previous quarter.
Mortgages made up $20.9 billion of this, an increase of $2.7 billion, while consumer credit and non-mortgage loans fell $2.8 billion to $6.5 billion.