StatCan says debt-to-income ratio declined in second quarter as income growth outpaced debt

OTTAWA — Statistics Canada says the amount households owe relative to their income edged lower in the second quarter as income gains outpaced debt growth.

On a seasonally adjusted basis, household credit market debt fell to 176.4 per cent of household disposable income, compared with 178.6 per cent in the first quarter. The agency said households held about $1.76 in credit market debt for every dollar of disposable income.

The household debt service ratio, which measures required principal and interest payments on credit market debt as a share of household disposable income, declined to 14.52 per cent from 14.68 per cent.

Seasonally adjusted household credit market borrowing slowed to $29.4 billion in the quarter from $34.4 billion in the first quarter. The measure includes consumer credit as well as mortgage and non-mortgage loans.

Mortgage borrowing fell to $19.4 billion, its slowest pace since the first quarter of 2024. Non-mortgage borrowing, including consumer credit, slowed to $10.0 billion.