Housing Market Contributes To Net Worth As Domestic Debt Rises

Because of the low-interest rates which makes it easier for credit to be more attractive, more credits are being taken by Canadians as they continue to borrow. Figures were recently released by Statistics Canada, and the number showed that the debt-to-disposable-income ratio has gone up to 167.6 in the second quarter of this year, up from the previous ratio of 165.2 three month back.

The limit of 0.5 percent increase in disposable income was exceeded after the income went up by 2 percent. The borrowing summed up to $1.9 billion included mortgages which accounted for $1.2 billion. The 65.6 percent of consumer credit consisted of mortgages, with no changes from the first quarter, making it the first time since 2010 that the share hasn’t gone up.

The net worth for household went up to $271,300 for each person, propelled by a 2.2 percent increase in the price of houses.