Canadian Debt Hits Record Lows

[mentalfloss]

Uh oh.

It's good economic news time again!

Canada's Household Debt-to-Income Ratio Posts Record Decline

Canada’s ratio of household debt to income posted the biggest decline on record in the first quarter with mortgage lending curbed by tougher rules and higher interest rates.

Credit-market debt such as mortgages fell to 168 percent of after-tax income from 169.7 percent in the prior three months, Statistics Canada said Thursday in Ottawa.

Credit-market debt rose just 0.3 percent in between January and March, reflecting the lowest volume of mortgage borrowing in almost four years. Disposable income increased 1.3 percent.

The report is a sign that the risks from a debt-fueled housing boom over the last decade may be fading.

Real estate executives and policy makers have said mortgage growth should slow early this year after tougher federal mortgage rules took effect. Some buyers have also been deterred by high prices in Vancouver and Toronto, and by the central bank’s three interest-rate increases since July.

https://www.bloomberg.com/amp/news/...old-debt-to-income-ratio-posts-record-decline

 

[Hoid]

Canadian banks are far too conservative to ever get themselves into very much trouble.

As we saw in 2008, when they want to gamble they go down to the States and get in on the deregulated follies.

Up here they are by the book

 

[Hoof Hearted]

Many are house rich but cash poor...especially seniors.

 

[taxslave]

Now look at sovereign and sub sovereign debt. All of a suddenly our left stumbling governments do not look good.

 

[Twin_Moose]

Is it because the West is getting back to work? honest question MF

 

[Danbones]

Canadians warned to climb out of debt before it's too late
Canadians warned to climb out of debt before it’s too late, as threat of cooling housing markets looms | Financial Post

Canadian household debt hits $1.8 trillion as global watchdog warns of risks to economy
37% of Canadians added to their debt, pushing average up to $22,837 per person, not including mortgages*
http://business.financialpost.com/p...bt-hits-1-8t-as-report-warns-of-domestic-risk

* "Per person" - or, "contains lil babies..."


...and now, for the real news we've been waiting for:

Is Canadians’ soaring debt too high? Our government hasn’t a clue
While the household burden is at historic heights a ‘secret document’ reveals Ottawa has no way of knowing whether that’s too high...
http://business.financialpost.com/p...-ratio-has-climbed-too-high-federal-officials

Canadians owe $1.71 for every dollar of disposable income they have — a new record high
Canadian households owed more than $2.1T at end of September, up 1.4% from summer levels
http://www.cbc.ca/news/business/debt-income-1.4448098
(state television)

HaHa, ya have to know this stuff is always right there just waiting around on the internets for an MF thread.

 

[IdRatherBeSkiing]

With the housing market slowing down, I expect a lot of people are not buying right now and not taking out mortgages, this may cause a decline in the ratio.

 

[Hoof Hearted]

mentalfloss usually gets his daily dose of news from his Dickie Dee ice cream vendor.

 

[Walter]

Thread title says record low but article says record decline. Low and decline have differnt meanings, OP is confused.

 

[petros]

As always.

 

[Hoid]

Thread title says record low but article says record decline. Low and decline have differnt meanings, OP is confused.

Having exposed the witch the other white nationalist climate change deniers heap praise upon the illiterate google scholar.

 

[darkbeaver]

Uh oh.

It's good economic news time again!

Canada's Household Debt-to-Income Ratio Posts Record Decline

Canada’s ratio of household debt to income posted the biggest decline on record in the first quarter with mortgage lending curbed by tougher rules and higher interest rates.

Credit-market debt such as mortgages fell to 168 percent of after-tax income from 169.7 percent in the prior three months, Statistics Canada said Thursday in Ottawa.

Credit-market debt rose just 0.3 percent in between January and March, reflecting the lowest volume of mortgage borrowing in almost four years. Disposable income increased 1.3 percent.

The report is a sign that the risks from a debt-fueled housing boom over the last decade may be fading.

Real estate executives and policy makers have said mortgage growth should slow early this year after tougher federal mortgage rules took effect. Some buyers have also been deterred by high prices in Vancouver and Toronto, and by the central bank’s three interest-rate increases since July.

https://www.bloomberg.com/amp/news/...old-debt-to-income-ratio-posts-record-decline

Someday you will post something that isn,t bullshjt, by mistake of course.

 

[Hoof Hearted]

You're a miserable sod, Hoid. I can feel my own luck changing for the worse every time I read one of your posts.

 

[pgs]

Great the value in people’s homes went up ,what happens if they go down ?

 

[Danbones]

"Value", or an inflated dollar number?

The 5 cent loaf of bread from so may years ago is now $3.65. But it's still the same ol' loaf of bread...well minus the nutrition.

Sh!t don't get me started on the price of my new framing hammer. (holy %^*(%$#!!!)

 

[mentalfloss]

Many are house rich but cash poor...especially seniors.

Try reading the article this time.

 

[JLM]

Thanks in part to rising interest rates. Smart people don't borrow in this situation or they'll cash in mutual funds etc. to knock down debt.

 

[10larry]

Stuff govs never ever discuss cause they have no clue on the number such as unfunded public sector liabilities will certainly add 100s of billion$ to joe averages' burden, the $1.70 is really gov pie in the sky whitewash.

 

[mentalfloss]

As predicted, conservatives hate good news about the economy.