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Canada Q4 household debt-to-income ratio dips, near record high

Published March 15, 2018 Updated March 15, 2018 01:21pm

The ratio of debt to disposable income dipped to 170.4 percent from 170.5 percent in the third quarter. Statscan revised the third quarter down from an initial 171.1 percent.

The Bank of Canada - which regularly expresses concerns about Canadians' debt levels - has raised interest rates three times since July and says it is closely monitoring consumers for signs of stress.

On a seasonally adjusted basis, households borrowed C$26.0 billion ($20.0 billion) in the fourth quarter, up from C$23.5 billion in the preceding quarter.

Mortgage borrowing grew to C$16.0 billion from C$15.3 billion, the first rise after five consecutive falls.

The debt service ratio, which measures debt principal and interest payments as a proportion of income, remained flat at 13.8 percent.

 

 

Copyright Reuters, 2018