Canada household debt up in Q2

Household debt in Canada increased in the second quarter, the first rise in three quarters as debts rose faster than incomes, according to a key gauge by Statistics Canada. The household credit market debt – including mortgages, consumer credit and other loans – was up 1.3 per cent in the second quarter from the previous three months, outpacing the disposable income growth rate of 0.6 per cent, according to the statistics agency’s quarterly national balance sheet report. Canadian households have incurred huge debts as they spend to buy homes and other big-ticket purchases as they take advantage of low borrowing costs. The closely watched ratio of credit debt to disposable income climbed to 163.6 per cent, following two consecutive declines but below last year’s record high of 164.1 per cent. In the latest quarter, mortgages account 65 per cent of the total debt, followed by consumer credit at 29 per cent and non-mortgage loans at 6 per cent, according to gantdaily.com