Mortgage borrowing increases share of household debt

The demand for borrowing from Canadian households was down in the first quarter of 2017 but mortgages accounted for a larger share.

Statistics Canada says that, on a seasonally adjusted basis, households borrowed $27.5 billion in the first quarter, down slightly from $27.6 billion borrowed the previous quarter.

Mortgage debt was $2.7 billion higher from the previous quarter, to $20.9 billion while borrowing in the form of consumer credit and non-mortgage loans declined $2.8 billion to $6.5 billion.

The debt-to-income ratio was also slightly lower than the previous quarter at $1.67 of debt for every dollar of income; year-over-year though it was up from $1.64.

More Mortgage Guide