Skip to main content

Canadian household debt continued to rise in the second quarter as individuals took out more mortgages at historically low rates and obtained consumer loans, Statistics Canada said on Tuesday.

The ratio of household credit market debt, which includes mortgages, consumer credit and loans, to disposable income rose to 149 per cent from 147 per cent in the previous quarter.

Policy makers have warned Canadians against taking on too much debt, especially as interest rates can only go up over time and some may find themselves unable to afford their debt payments.

Story continues below advertisement

The Bank of Canada warned earlier this year that the number of Canadians who were vulnerable to an adverse economic shock had risen to its highest level in nine years.

Despite an increase in home prices, household net worth declined 0.3 per cent in the second quarter, Statscan said, because of a drop in prices of shares held by households, including pension assets.

Per capita household net worth fell for the first time in a year to $184,300 from $185,500 in the first quarter.

Government net debt and corporate debt-to-equity both rose in the second quarter compared with the first.

National net worth – which includes households, corporations, governments and nonresidents – rose 1.2 per cent to C$6.4-trillion, with residential real estate accounting for over half of the gain.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies