Household debt increases but real estate adds to net worth

Canadians keep on borrowing as low interest rates make credit more attractive.

Statistics Canada released figures Thursday showing the debt-to-disposable-income ratio increased to 167.6 in the second quarter of 2016, up from 165.2 in the previous three months. The 2 per cent rise in debt exceeded the 0.5 per cent rise in disposable income.

Total borrowing was $1.9 billion with mortgages accounting for $1.2 billion. Mortgages made up 65.6 per cent of consumer credit, unchanged from the previous quarter, the first time since 2010 that the share had not increased.

Household net worth increased to $271,300 on a per capita basis, driven by a 2.2 per cent rise in home prices.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Investment Hot Spots:
Saint-Anselme, Raleigh, Cupar, L'Ange-Gardien, Chamberlain

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address


Is a T.O foreign sales tax a good idea?