Household credit market debt to disposable income, Canada

Household credit market debt to disposable income compares what Canadian households owe with what they earn after taxes and transfers. Statistics Canada publishes it each quarter, seasonally adjusted, from its national balance sheet and income accounts. The numerator is household credit market debt, made up of mortgages, consumer credit and non-mortgage loans; the denominator is household disposable income at an annual rate. A ratio of 175% means households owe $1.75 for every dollar of yearly disposable income.

It is the measure most often used to describe how stretched Canadian borrowers are, and the Bank of Canada tracks it in its work on financial stability. For lenders it shows how exposed borrowers are to interest rates. Canadian mortgages are usually fixed for five years or less, so higher rates reach household budgets as loans renew, and a high ratio makes that adjustment heavier.

Read it with care. The ratio sets a stock of debt against a flow of income, so it can fall because incomes grow rather than because households repay. It says nothing about which households hold the debt or what assets they own, so the same ratio can describe very different risks. Statistics Canada also revises income in later releases, which can move past readings.

Household credit market debt to disposable income is at its lowest since Q1 2025, when it stood at 175.35%. Within ten years, household credit market debt to disposable income beats 15% of readings; earlier years held household credit market debt to disposable income lower.

Household sector credit market debt as a percent of household disposable income.

Statistics Canada publishes household credit market debt to disposable income quarterly in Table 38-10-0238-01, in percent and is seasonally adjusted. Code: 38100238:1.11. Method for household credit market debt to disposable income.