(December 17) In the third quarter of 2016 the Canadian household debt to income ratio rose to a record high as borrowing continues to increase faster than incomes.
|According to Statistics Canada the ratio went up from 166.4 percent in the second quarter to 166.9 percent in the third. This means that for every dollar of income earned by a Canadian household almost 1.67 is owed in debt. However, Benjamin Reitzes, an economist at BMO Capital Markets said the half percentage point increase was actually below seasonal norms and the smallest increase in the third quarter since 2000. Reitzes thinks that the ratio could flatten somewhat in 2017 especially as in areas such as the Vancouver housing market has cooled, and restrictions on mortgage may slow down activity a bit in 2017. Statistics Canada reported that in the third quarter, adjusted disposable income increased by 1.0 percent while debt rose by 1.3 percent.|