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Debt ratio outpaces income

Statistics Canada says the amount Canadians owe relative to their income held steady in the first quarter as debt and income grew at similar rates.

The agency says on a seasonally adjusted basis household credit market debt as a proportion of household disposable income remained at 177.6 per cent.

In other words, there was roughly $1.78 in credit market debt, which included consumer credit, and mortgage and non-mortgage loans, for every dollar of household disposable income.

On a seasonally adjusted basis, total credit market borrowing in the quarter edged down to $20.2 billion from $20.6 billion in the previous quarter. Canadians borrowed $7.0 billion in consumer credit and non-mortgage loans, while mortgage borrowing reached $13.2 billion.

Credit market debt totalled $2.23 trillion in the first quarter including $1.45 trillion in mortgage debt and $776.4 billion in consumer credit and non-mortgage loans.

The household debt service ratio, measured as total obligated payments of principal and interest on credit market debt as a proportion of household disposable income, was 14.9 per cent in the first quarter.



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