RBC: Canadians are likely to have borrowed more despite recession

While official figures show a technical recession for the first half of 2015, it seems Canadians were not put off from borrowing. A report from RBC shows that the average household’s level of debt grew to a new record high. The mortgage lender’s economist Laura Cooper estimates that Canadians now have $1.84 trillion in debt, including mortgages; up 4.9 per cent from the first half of 2014. Home loans increased 3.2 per cent.  While interest rates are low and there have been some income gains, Cooper’s report warns that this will not continue for ever and notes that 40 per cent of outstanding debt is held by just 12 per cent of households. These could become a problem as mortgage rates rise.