September 11, 2025
RED FM News Desk
Statistics Canada reports that the amount of debt Canadians hold relative to their income increased slightly in the second quarter, as debt accumulation outpaced income growth.
The agency stated that the household credit market debt-to-disposable-income ratio, on a seasonally adjusted basis, rose by 1.1% to 174.9%. This means that for every dollar of household disposable income, there was $1.75 in credit market debt in the second quarter.
The household debt service ratio, which measures obligated payments on principal and interest, also ticked up from 14.37% to 14.41% during the quarter.
These figures were released as the pace of household credit market borrowing slowed to a seasonally adjusted $31.6 billion, down from $34.5 billion in the first quarter of 2025.
The total seasonally adjusted stock of household credit market debt, which includes consumer credit, mortgages, and non-mortgage loans, rose by 1% to exceed $3.1 trillion in the second quarter. Mortgages accounted for nearly 75% of this total debt.
Loading ...
