On a seasonally adjusted basis, households have borrowed 21.2 billion in the fourth quarter, while demand for mortgage loans has increased from 2.3 billion to reach $ 12.3 billion.
The amount that must the Canadians relative to their income has increased in the fourth quarter of last year, the growth of their debt slightly exceeded that of their income, said on Thursday Statistics Canada.
According to the federal agency, the debt of households on the credit market, expressed as a proportion of their income, has increased to 178,5 % in the fourth quarter. This compares to a reading revised to 178.3 % for the third quarter. In other words, households hold a value of $ 1.79 of debt on the credit market for every dollar of their disposable income.
It is the debt of households on the credit market for every dollar of their disposable income.
In the eyes of Josh Nye, chief economist at the Royal Bank, these figures highlight the challenge faced by the consumers. “It will be necessary for the income growth of households exceeds that of the debt over a long period of time to achieve a significant improvement in the ratio of debt to income, has written to Mr. Nye in a report. We do not observe this. “
Mr. Nye noted that the ratio of debt service had risen for a fifth consecutive quarter, to equal a record. The ratio of the debt service of households, that is, the total of compulsory payments of principal and interest in proportion to the disposable income of households on the credit market, has increased to 14.9% this quarter, compared to 14.7 % in the third quarter.
“Even if we do not expect the Bank of Canada to increase rates again until later this year, the ratio of debt service is expected to further increase slightly in the coming quarters, the owners renew their fixed rate loans at interest rates higher,” continued Mr Nye.
The increase in borrowings in the fourth quarter helped fuel the rise of the two main debt ratios.
On a seasonally adjusted basis, households have borrowed 21.2 billion in the fourth quarter, said Statistics Canada, while the demand for mortgage loans has increased from 2.3 billion to reach $ 12.3 billion. However, despite the annual increase recorded in the fourth quarter, borrowings on the credit market of households have decreased 19.5 %, to reach $ 84.6 billion by 2018, the lowest level of borrowing since 2014.
Mortgage debt reached nearly $ 1440 billion, while loans for consumption and loans non-mortgage total $ 769,4 billion.