(ಠ_ಠ)
2014-12-15 22:12:25 UTC
So much for Harper's 'economic record', eh? The Cons must be referring to a
long-play record on a turntable in his home somewhere . . .
The only ones that have come out ahead under this government are the oil
companies and foreign workers. Canadians are sucking wind.
_________________________________________________________
The Canadian Press - December 15, 2014
Canadian household debt climbs to record levels
TORONTO - Canadian household debt hit a record high during the third quarter,
as it grew at a faster pace than disposable income, according to the latest
figures from Statistics Canada.
The total amount of credit market debt — which includes mortgages, non-mortgage
loans and consumer credit — held by Canadian households increased to 162.6 per
cent of disposable income during the quarter, from a revised 161.5 per cent in
the previous quarter.
That means Canadians owed about $1.63 for every dollar of disposable income in
the third quarter.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
The previous record of 161.7 per cent was set in the third quarter of 2013.
RBC economist Laura Cooper said the high ratio of debt relative to net worth
will reinforce the Bank of Canada's cautious approach to raising its benchmark
interest rate.
"Consumers have amassed record levels of outstanding debt as a protracted
period of depressed borrowing rates has sustained buoyant housing market
activity," Cooper said in a note.
The bank's overnight rate, which generally influences the interest rate charged
by lenders for variable rate mortgages and lines of credit, has remained at one
per cent for more than four years.
Cooper noted that more timely data from the Bank of Canada suggests the
accumulation of mortgage debt has settled into a more steady pace, although
non-mortgage loans have picked up some of the slack.
"Notably, the Bank of Canada perceives the risk of an unwinding of household
imbalances as still low and against a strengthening economic backdrop is
expected to raise the overnight rate in small, incremental hikes beginning in
mid-2015," Cooper said.
"We anticipate that while outstanding credit balances will likely rise further,
this will be accompanied by steady income gains, resulting in the
debt-to-income ratio stabilizing, albeit at elevated levels in upcoming quarters."
During the quarter, households borrowed $27.4 billion, primarily mortgages.
In total, Canadian households had $1,805 billion in credit market debt at the
end of the third quarter — an increase of about 1.5 per cent.
The increase was on par with the gain made during the previous quarter.
Meanwhile, the debt service ratio — the amount of interest paid on mortgage and
non-mortgage debt as a proportion of disposable income — declined to 6.8 per
cent, an "all-time low," according to Statistics Canada.
Both the mortgage debt service ratio and the consumer credit debt service ratio
edged down during the quarter.
Household net worth climbed 1.3 per cent during the quarter, after a 2.2 per
cent increase in the previous quarter. Household net work was $232,200 on a per
capita basis.
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long-play record on a turntable in his home somewhere . . .
The only ones that have come out ahead under this government are the oil
companies and foreign workers. Canadians are sucking wind.
_________________________________________________________
The Canadian Press - December 15, 2014
Canadian household debt climbs to record levels
TORONTO - Canadian household debt hit a record high during the third quarter,
as it grew at a faster pace than disposable income, according to the latest
figures from Statistics Canada.
The total amount of credit market debt — which includes mortgages, non-mortgage
loans and consumer credit — held by Canadian households increased to 162.6 per
cent of disposable income during the quarter, from a revised 161.5 per cent in
the previous quarter.
That means Canadians owed about $1.63 for every dollar of disposable income in
the third quarter.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
The previous record of 161.7 per cent was set in the third quarter of 2013.
RBC economist Laura Cooper said the high ratio of debt relative to net worth
will reinforce the Bank of Canada's cautious approach to raising its benchmark
interest rate.
"Consumers have amassed record levels of outstanding debt as a protracted
period of depressed borrowing rates has sustained buoyant housing market
activity," Cooper said in a note.
The bank's overnight rate, which generally influences the interest rate charged
by lenders for variable rate mortgages and lines of credit, has remained at one
per cent for more than four years.
Cooper noted that more timely data from the Bank of Canada suggests the
accumulation of mortgage debt has settled into a more steady pace, although
non-mortgage loans have picked up some of the slack.
"Notably, the Bank of Canada perceives the risk of an unwinding of household
imbalances as still low and against a strengthening economic backdrop is
expected to raise the overnight rate in small, incremental hikes beginning in
mid-2015," Cooper said.
"We anticipate that while outstanding credit balances will likely rise further,
this will be accompanied by steady income gains, resulting in the
debt-to-income ratio stabilizing, albeit at elevated levels in upcoming quarters."
During the quarter, households borrowed $27.4 billion, primarily mortgages.
In total, Canadian households had $1,805 billion in credit market debt at the
end of the third quarter — an increase of about 1.5 per cent.
The increase was on par with the gain made during the previous quarter.
Meanwhile, the debt service ratio — the amount of interest paid on mortgage and
non-mortgage debt as a proportion of disposable income — declined to 6.8 per
cent, an "all-time low," according to Statistics Canada.
Both the mortgage debt service ratio and the consumer credit debt service ratio
edged down during the quarter.
Household net worth climbed 1.3 per cent during the quarter, after a 2.2 per
cent increase in the previous quarter. Household net work was $232,200 on a per
capita basis.
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