Statistics Canada building and signs are pictured in Ottawa on Wednesday, July 3, 2019. Statistics Canada says household debt edged down in the fourth quarter as household net worth rose. THE CANADIAN PRESS/Sean Kilpatrick
March 13, 2020 - 7:53 AM
OTTAWA - Statistics Canada says household debt as a percentage of disposable income edged down in the fourth quarter.
The agency says Canadian households owed an average of $1.763 for every dollar of disposable income, down from the $1.766 in the previous quarter.
On a seasonally adjusted basis, total household borrowing declined $400 million to $26.2 billion for the fourth quarter from the previous quarter.
The household sector's net worth rose by $186.5 billion to nearly $11.7 trillion, as the increased value of assets offset an increase in liabilities.
Demand for mortgage loans rose to $18.4 billion, while consumer credit and non-mortgage borrowing decreased to $7.8 billion.
The household debt service ratio, which measures how much income goes to paying interest and principal, rose to 14.98 per cent.
This report by The Canadian Press was first published March 13, 2020.
News from © The Canadian Press, 2020