StatCan says debt-to-income ratio declined in Q2 as income growth outpaced debt
OTTAWA — Statistics Canada says the amount households owe relative to income edged lower in the second quarter as income gains outpaced the growth in debt.
Statistics Canada reported that the household debt-to-income ratio decreased in the second quarter of 2026, as income growth outpaced debt accumulation. The agency found that household credit market debt as a proportion of disposable income fell to 176.4% seasonally adjusted, down from 178.6% in the preceding quarter. This means households held about $1.76 in credit market debt for every dollar of disposable income.
The household debt service ratio, which measures obligated principal and interest payments on credit market debt relative to disposable income, also declined to 14.52%, a drop from 14.68% in the first quarter. The slowdown in borrowing contributed to this improvement. Seasonally adjusted household credit market borrowing decreased to $29.4 billion for the quarter, compared to $34.4 billion in the first quarter.
Mortgage borrowing specifically fell to $19.4 billion, the slowest pace of borrowing since the first quarter of 2024. Non-mortgage borrowing, including consumer credit, slowed to $10.0 billion.
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