Household debt creep resumes
In a year where pretty much all things economic and financial have been stood on their heads, here is another anomaly brought on by the coronavirus pandemic. Household debt is on the rise again and a lot of it is mortgages. The latest tally by Statistics Canada shows that the Canadian Household Debt-to-Income ratio crept back up to 170.7% in the third quarter. That is, on average, Canadian households owe $1.71 for every dollar of disposable (after tax) income. That is a significant bump from $1.63 in the second quarter, but significantly less than the $1.81 at the start of the year. The drop in Q2 is largely attributed to government support payments, mortgage deferrals and other debt relief that saw Canadians spending much less, [...]