Statistics Canada reported Wednesday that household disposable income also increased, by 1 per cent but the increased debt meant a rise in the debt-to-disposable income ratio. Households owe $1.67 for every dollar of income.
Overall household net wealth was higher, up 2.5 per cent to $278,200. This was due to a rise of 3.2 per cent in financial assets including equities and life insurance; and a 1.2 per cent rise in non-financial assets, mainly real estate.
Mortgage borrowing was down in the third quarter to $17.3 billion of total borrowing ($18.2 billion) compared to $20.1 billion in the previous quarter (seasonally adjusted).
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Canadian household debt exceeded $2 trillion in the third quarter, up 1.3 per cent from the previous three months.