Canada has the highest level of household debt to disposable income of any G7 country, reported Wednesday.
The agency wrote that its 2021 census survey revealed debt-to-income ratio reached more than 180 per cent, beating the United States and Germany by a large margin. Both of those countries posted rates of 100 per cent.
That means that, for every dollar Canadian households had in disposable income, they owed about $1.85.
For contrast, in 1980, the rate was just 66 per cent.
The agency attributed Canadians鈥� high levels of debts to homeownership, describing housing as a 鈥渄ouble-edged sword鈥� 鈥� a significant contributor to the overall wealth of the middle class while resulting in 鈥渋mbalances between assets and debt.鈥�
Canadians in the middle to low income quintiles were generally spending more than they were saving through 2023. There was also a strong correlation between the saving capabilities of homeowners versus renters. Owners with mortgages were saving more than they were spending, while renters were not.
鈥淔or an average household, real estate represents about 55 per cent of their wealth and mortgages represent most of their debt鈥攖rends even more pronounced for middle-class or working-age families,鈥� wrote the agency.
It also says Canadians over 55 held 65 per cent of total wealth in Canada, suggesting 鈥渕ajor risks for intergenerational mobility鈥� in decades to come.
