By Robb M. Stewart
OTTAWA–Household debt in Canada continued to fall in the final quarter of last year as disposable income outpaced relatively slow mortgage borrowing.
The ratio of household credit market debt to personal disposable income in the fourth quarter declined to 178.7% from 179.2% in the previous quarter, a third consecutive drop, Statistics Canada said Wednesday in its quarterly report on national balance sheets.
That means households owe an average of 1.79 Canadian dollars, the equivalent of roughly $1.33, for every dollar of after-tax income they earn. The data agency said total household credit-market debt rose 1.0% in the fourth quarter, lagging a 1.3% increase in disposable income.
Many Canadians built up savings and paid down debt during the pandemic, though overall household debt levels in the country have remained high for years and there are concerns high interest rates could see…
