Statistics Canada says household debt-to-income ratio fell in first quarter
People wait in line to enter a Costco store in Toronto on Monday, April 13, 2020. THE CANADIAN PRESS/Nathan Denette
The Canadian Press
Published Friday, June 11, 2021 10:15AM EDT
OTTAWA - Statistics Canada says the amount Canadians owe compared with their income fell in the first quarter compared with the end of last year.
The agency says household credit market debt as a proportion of household disposable income on a seasonally adjusted basis fell to 172.3 per cent in the first quarter.
The reading compared with 174.0 per cent for the fourth quarter of 2020 as an increase in household income outpaced an increase in debt.
The result means Canadians owed $1.72 in credit market debt for every dollar of household disposable income.
Meanwhile, the household debt service ratio, measured as total obligated payments of principal and interest on credit market debt as a proportion of household disposable income, fell to 13.45 per cent from 13.55 per cent in the fourth quarter.
The decrease came as the seasonally adjusted household savings rate rose to 13.1 per cent in the first quarter compared with 11.9 per cent in the last quarter of 2020.
This report by The Canadian Press was first published June 11, 2021.