Canadian household debt level rises, hits 163.7% of disposable income

(by The Canadian Press) Canadian household debt hit a new record in the third quarter, as borrowing rose faster than their income. Statistics Canada said Monday the amount of household debt compared with disposable income rose to 163.7 per cent, up from 162.7 per cent in the second quarter.  That means the average household has roughly $1.64 in debt for every dollar of disposable income. The Royal Bank attributed the rise to the hot real-estate market.

“Robust housing market activity nationally and an attendant lift in residential mortgage demand drove overall household debt balances higher,” Royal Bank economist Laura Cooper said in a report.

Disposable income increased 0.8 per cent, while household credit market debt grew 1.4 per cent.