Average Canadian family debt reaches $96,100
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The average Canadian family’s household debt climbed to $96,100 last year, according to a study released by the Vanier Institute of the Family.
The study estimated the average debt-to-income ratio for families at 145 per cent. The institute said that’s the highest ratio ever recorded by the annual study, now in its 11th year.
There was a dramatic increase in late debt payments reported, with a 50 per cent increase in the number of mortgage payments that were at least 90 days late, when comparing October with the same period in 2008.
There was also a 40 per cent increase in the number of credit card holders who were at least three months behind in their payments in July from a year earlier.
The Vanier report also found signs of a housing bubble, with prices at about five times the average after-tax income of Canadian households. The report said the long-term average is 3.7 times over the past 20 years.
The study was released on February 16, just before Finance Minister Jim Flaherty officially announced plans to make it tougher for Canadians to take out mortgages, as concerns mount that too many Canadians are taking on more debt than they can handle.
