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Mortgage borrowing hits record in the second quarter, Statistics Canada says

Statistics Canada building and signs are pictured in Ottawa on Wednesday, July 3, 2019. Statistics Canada says a key measure of household debt rose in the first quarter as the COVID-19 pandemic began to take hold of the economy. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — Statistics Canada says mortgage borrowing hit a record in the second quarter as the amount Canadians owe relative to their income climbed higher.

The agency says on a seasonally adjusted basis that household credit market debt as a proportion of household disposable income rose to 173.1 per cent in the quarter compared with 172.6 per cent in the first quarter.

In other words, there was $1.73 in debt for every dollar of household disposable income.

The increase came as total credit market borrowing on a seasonally adjusted basis rose to $63.8 billion in the second quarter, more than double the amount in the first quarter. The rise was driven by a record $57.2 billion in mortgage loans, while demand for non-mortgage loans was $6.6 billion.

The total stock of credit market debt, which includes consumer credit, and mortgage and non-mortgage loans, totalled $2.53 trillion including $1.74 trillion in mortgage debt and $797.7 billion in non-mortgage loans.

The household debt service ratio, measured as total obligated payments of principal and interest on credit market debt as a proportion of household disposable income, fell to 13.32 per cent in the quarter compared with 13.45 per cent in the first quarter.

This report by The Canadian Press was first published Sept. 10, 2021.

The Canadian Press