Canadians currently hold $1.65 in debt for every dollar they earn after taxes and other moneys paid to the government.
It is a new record high.
Canadians’ debt includes both credit and mortgage debt, both of which are growing.
Canadians owe $1.2 trillion in mortgage debt; $573 million in consumer credit.
According to economics analysts, households have been able to take on more debt in recent years due to low interest rates. Because interest rates continue to decrease, borrowing is accelerating.
The borrowing may contribute to overall economic growth, but it also may set Canadian households up for interest rate shock or housing market slowdowns.