Canadian debt levels are reaching record highs amid the coronavirus pandemic, according to Statistics Canada.
The federal agency reported that household credit market debt as a proportion of household disposable income rose to 177% from 175.6% in the first quarter of the year. That means Canadians owe $1.77 in debt for every dollar of household disposable income.
Canada's debt to disposable income ratio hit an all-time high of 178% in 2017 and had been moving lower over the past three years before rising again in the first quarter of this year to its current level of 177%.
On a seasonally-adjusted basis, total credit market borrowing in Canada rose $1.9 billion to $27.6 billion in the first quarter. Mortgage loans rose $3.8 billion to $23.1 billion, while demand for consumer credit and non-mortgage loans fell $1.9 billion to $4.5 billion.
Overall, Statistics Canada said credit market debt totaled $2.33 trillion at the end of the first quarter, including $1.53 trillion in mortgage debt and $802.1 billion in consumer credit and non-mortgage loans. 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 14.67% from 14.81%.
