The level of debt to household income rose to a record ratio of 164.6 per cent in the second quarter of 2015, up from 163.0 per cent in the first quarter. Statistics Canada’s figures show that Canadians have added to their borrowing amid two interest rate cuts and economists warn that the Bank of Canada will have to tread carefully when considering increases to avoid widespread defaults.
On a seasonally adjusted basis, households borrowed $26.3 billion in the second quarter, up $3.7 billion from the first quarter. Mortgages represented the largest portion of total borrowing in the quarter ($17.7 billion), up $2.3 billion from the previous quarter, while consumer credit accounted for $4.0 billion of borrowing.
National net worth rose 1.3 per cent or $107.3 billion from the first quarter to reach $8,545 billion by the end of the second quarter. On a per capita basis, national net worth grew 0.9 per cent to $238,200.